CIT Group Bankrupt
Reuters just announced that CIT Group Inc filed for bankruptcy protection on Sunday. CIT’s operating subsidiaries, including CIT Bank, are not included in the bankruptcy filing, and expect to continue operating.
The company suffered as the global credit crisis left it unable to fund itself, and the recession left it with too many bad loans, Reuters stated.
Last year, the U.S. government provided $2.3 billion to the CIT. The bankruptcy filing permits CIT to reduce its total debt by about $10 billion.
The obvious question is what about the $2.3 billion bailout made up of taxpayer money?
The probable answer is also obvious – painfully so!
