CIT about to go belly up

[rjwjr]

Re: CIT about to go belly up

I meant the Wallstreet organizations that control the US government.

Oh yeah, how many electoral votes does Goldman have? California has its own brand of political clout.

[GRG55]

Re: CIT about to go belly up

reads like politics of bailouts to me... first use the fire econ media to raise the specter of doom... 1 million businesses get loans from citi! if we let them go under we're all gonna diiiiieeeeee! aaaaaaahhhhh! :eek::eek::eek::eek::eek::eek:

then go back to congress for more money, leniency, etc....

If you can't get it directly from the taxpayers, the next best thing is to get it indirectly from the taxpayers. Wonder how much in fees JPM and GS are going to charge for funnelling the funds? Ain't capitalism wonderful... :rolleyes:

CIT in talks with JPMorgan, Goldman: source

Fri Jul 17, 2009 6:44pm EDT
NEW YORK (Reuters) - CIT Group Inc (CIT.N) is in talks with JPMorgan Chase & Co (JPM.N) and Goldman Sachs Group Inc (GS.N) about short-term financing as it looks for ways to avoid bankruptcy, a source close to the company said on Friday, sending the lender's shares and bonds up.

Bankruptcy, however, is still possible over the next few days, and CIT, a 101-year-old lender that services nearly one million small- and mid-sized businesses, is continuing to talk with regulators about the situation, the source said.

Financing talks have turned primarily to arranging for a debtor-in-possession (DIP) loan for the lender in case of a bankruptcy, CNBC reported, adding that talks were also continuing for financing out of court.

JPMorgan and Morgan Stanley were in talks with other banks about a DIP loan, Bloomberg reported...

[World Traveler]

Re: CIT about to go belly up

Prof. Simon Johnson explores this issue in a recent post. The process by which some, but not all, competing oligarchs are saved. The survivors (i.e. Goldman Sachs and J P Morgran) then become even more fabulously rich, by inserting themselves into "management " of and taking over those without as much political clout.

"On who must be saved, we see the new dividing line. If you have more than $500bn in total assets, post-Lehman, you make the first cut. If you’re below $100bn (e.g., CIT), you can go bankrupt."

"We are looking at a concentration of political power in the US banking system that we haven’t seen since the 1830s: Shades of Andrew Jackson vs. the Second Bank of the United States. We put up with a lot from our banking elite in this country, but historically we draw the line at financial power so concentrated it can confront the power of the President. The logic for reform and for breaking up the big banks begins to build. Bank of America’s fall was, in some senses, a fortunate accident for Goldman and JP Morgan. But it has also given them an excessive and unsustainable degree of political power."

http://baselinescenario.com/2009/07/...onalized-whom/

[santafe2]

Re: CIT about to go belly up

How could they justify a save of CIT and not the State of California (or New York for that matter)?

There's not much oil left in California. As a nation, we're chasing resources and Cali is a pretender. We've used it up and they don't know it yet. I'm an ex-Cali native and several years removed. I don't understand why anyone would live or do business there. CIT is idiotic but Cali is same.

[rj1]

Re: CIT about to go belly up

There's not much oil left in California. As a nation, we're chasing resources and Cali is a pretender.

Is this post a joke? In spite of the fact that Californians don't want any resources developed, California has tons of resources, both in the ground and grown on top of it.