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CIT Group Seeks Bankruptcy Protection After U.S. Bailout Failed

Some more details:

CIT Group Inc., a 101-year-old commercial lender, filed for bankruptcy to cut $10 billion in debt after the credit crunch dried up its funding and a U.S. bailout and debt exchange offer failed.

CIT listed $71 billion in assets and $64.9 billion in debt in a Chapter 11 filing in U.S. Bankruptcy Court in Manhattan. The U.S. Treasury Department said the government probably won’t recover much, if any, of the $2.3 billion in taxpayer money that went to CIT.
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According to the petition, CIT’s largest unsecured claim holders were Bank of America Corp., as collateral agent for a $7.5 billion claim, and Bank of New York Mellon Corp., as a trustee for retail bonds with a claim of $3.2 billion. Canadian senior unsecured notes have a claim for $2.1 billion, and Citigroup Inc. also has a $2.1 billion claim as an administrative agent to bank debt due 2010.

CIT had said in its Oct. 2 outline of a prepackaged plan that it would give most noteholders new notes at 70 cents on the dollar plus new common stock, compared with the range of 70 cents to 90 cents and new preferred stock proposed in the exchange offer.

CIT also said it would try to emerge from bankruptcy two months from the date of its filing.
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CIT Files Bankruptcy; U.S. Unlikely to Recoup Money (Update3) - Bloomberg.com
 
What is important here about CIT as I understand it, they traditionally have been used to keep the back bone of American economic engine running with regular loans to small businesses where the majority of jobs are created.
If I have this right the story is being under reported and deliberately so by the "Lame Stream Media" because it is another indication prior to tomorrows elections that the Obama economic recovery plans have failed and in fact are worsening.
If you look at and couple this with the; AFP: Employment turnaround likely at start of 2010: Geithner story it's all part of a political ploy to effect the outcome of tomorrows races.
 
Let it sink.
 
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