CIT On The Brink Of Collapse - Taxpayers Can Kiss That $2.3bln Goodbye

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CIT On The Brink Of Collapse - Taxpayers Can Kiss That $2.3bln Goodbye

By David Spurr on October 1, 2009 | More Posts By David Spurr | Author's Website

It looks as though finance firm CIT group (CIT) is ready to fold. Taxpayers loaned this dog $2.3bb.

That’s a lot of dog biscuits.

The financial firm, which received $2.3 billion in federal bailout aid last fall, received a $3 billion emergency loan in July from some of its largest bondholders and completed a debt repurchase program in August to help ease its cash crunch. Those measures appear to still be short of saving CIT Group, which has said in the past it would need to continue to reduce its debt burden to survive. Any deal with bondholders would likely wipe out most of the government’s $2.3 billion bailout loan, according to the Journal.

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