Based on an article in The Times,
CIT group is a leading lender to small businesses. CIT filed for chapter 11 bankruptcy Nov. 1, 2009.
CIT is a 101 year old company. They were given $2.3 billion, yes BILLION, in bail out money from the government. CIT group asked for more, but the Obama administration turned them down.
Preferred shareholders, including the US Treasury, which received preference shares in return for the TARP money, will be repaid only if there is money left over after paying the bondholders. Ordinary share holders will be automatically wiped out.
Link to the complete article at:
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6898854.ece
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