« Taxpayer's $2.3 Billion Stake In CIT Group Worth $0 »
Thank you Hank, Ben and Tim. Excellent work. Seriously. Great f*cking job. Maybe just maybe you should have peered at the books before committing TARP funds.
A month later, Sheila Bair got a peek and said 'no way' are they getting FDIC debt. Their bankruptcy was unnoticed by markets. Yet avoidance of market disruption was the reason given for TARP's original investment in CIT. Like I said, not even a ripple when they filed.
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The U.S. Treasury has officially lost its entire $2.33 billion TARP investment in CIT Group , according to a company filing.
The Treasury made the investment in CIT in December 2008, but CIT then ran into trouble after the Federal Deposit Insurance Corp. refused to guarantee its debt, as the FDIC did for larger lenders, including General Electric and large banks like Citigroup , Bank of America and Wells Fargo. CIT ended up filing for bankruptcy protection on Nov. 1 but was able to reorganize and return to a public listing on Dec. 10.
Contrary to what many assumed, the bankruptcy filing did not extinguish all hope for a taxpayer recovery. The Treasury and other preferred shareholders received complex securities called contingent value rights (CVRs) which could have been worth something if CIT Group's stock had reached the mid-50s ahead of Monday's session, according to the estimate of another investor who held CVRs.
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Thursday, February 11, 2010 at 2:47AM
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Reader Comments (23)
TARP Stake In CIT Group Is Wiped Out
http://www.businessweek.com/news/2010-02-10/thain-and-cit-offer-each-other-a-second-chance-at-redemption.html
How much TLGP money did it help GMAC raise?
The FDIC has fallen into the red while protecting trillions of our deposits. It has a $500 billion credit line from our Congress.
But it has money to back over $300 billion worth of bank bonds?
What insurance corporation can be run like this without our implicit tax money guarantee?
There was no restriction on executive compensation on capital raised via TLGP. Banks essentially used it to pay back TARP money and award bonuses.
"The Subsidy That Won't Die
The big banks claim the government isn't helping them anymore. Not exactly. Check out this little-known subsidy."
http://www.newsweek.com/id/230530
Ms. Bair seized Wamu based on liquidity pressure, wiping out thousands of jobs and billions in investments.
Yet mere days later, the FDIC launched TLGP to help banks like Goldman Sachs and JP Morgan raise billions of dollars to improve their liquidity.
The OTS Fact Sheet stated that the bank was well-capitalized even on the day of receivership. Puget Sound Business Journal recently reported that Wamu was liquid and solvent. It requested information relating to the seizure but most of the documents it received from our regulators were blacked out.
http://www.bizjournals.com/seattle/blog/2009/12/the_fight_for_wamu_documents.html
Gets Roaring Salute too
Prepare for CIVIL UNREST in USA
Survival will be a Challenge: Rome Did not burn in a Day.....NERO=OBAMA now
These Slogans on the Planet in the near future will Roar with a big BANG thunder
(((((((((KILL THE BANKERS >>>>>KILL THE BANKER>>>KILL THE BANKERS))))))))))))))
ROME revisited..LOL
The big banks claim the government isn't helping them anymore. Not exactly. Check out this little-known subsidy."
http://www.newsweek.com/id/230530
http://en.wikipedia.org/wiki/Soviet_war_in_Afghanistan
Indeed! And let's be THRIFTY about it too!
Certain German 'field studies' performed during the 40's indicate that just ONE rifle bullet can completely penetrate up to 7 bodies ..if you line the 7 up correctly.
I'm thinking these guys are lined up correctly.
http://www.nytimes.com/2009/12/15/business/15sorkin.html
http://www.fivethirtyeight.com/2009/03/in-defense-of-vijay-wall-street-banker.html
By Hossein Askari and Noureddine Krichene
http://www.atimes.com/atimes/Global_Economy/KL03Dj01.html
German chancellor refuses to rescue Greece's ailing economy amid Berlin's domestic austerity
http://www.guardian.co.uk/theguardian/2010/feb/11/germany-greece-merkel-bailout-euro
http://www.youtube.com/watch?v=tPmrA_QPm50
Capitalism Hits the Fan Part 2 of 2
http://www.youtube.com/watch?v=eQNvHXJbF8Y&feature=related
Certain German 'field studies' performed during the 40's indicate that just ONE rifle bullet can completely penetrate up to 7 bodies ..if you line the 7 up correctly.
I'm thinking these guys are lined up correctly. <<<<<
LOL!! funny!!
"Justice Isn’t Blind, It’s Unconscious
(Bloomberg) It is so widely accepted that Lehman Brothers Holdings Inc.’s balance sheet was bogus that even former Treasury Secretary Hank Paulson can say it in his new memoir. And still,the government hasn’t found anyone who did anything wrong at the failed investment bank.
How could that be, 17 months after Lehman collapsed and sent the global credit crisis into overdrive? While Congress and the White House dither about reforming the U.S. financial
system, the wheels of justice are grinding so slowly, if at all, that it seems there’s no appetite in Washington for holding Wall Street executives accountable for anything."
GET RID of NOBAMA and HOLDER...good for nothing...bring civilian courts to war criminal-terrorists, while ignoring the trillions of dollar RIP-OFF by Wall St crooks!!!!!!!
http://dailybail.com/headlines/simon-johnson-on-wall-street-obama-still-doesnt-get-it.html?lastPage=true#comment7430988