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SUNDAY, NOVEMBER 22, 2009
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6

Mega-Lender CIT Files Chapter 11

Bailed-out firm's move will cost government $2.3B

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(Newser) – CIT Group, a major lender to small and medium-sized American businesses, filed for Chapter 11 today. The move means the government is most likely out the $2.3 billion in TARP bailout funds it put up last year. The "prepackaged" procedure is intended to allow CIT, which reported $71 billion in assets and $64.9 billion in liabilities, to emerge from bankruptcy protection by the end of the year, CNN Money reports.

Jeffrey Peek, who has said he will resign as chairman and CEO of CIT Group Inc. at the end of 2009, talks during the dedication of the CIT global headquarters in New York, April 27, 2006.
Jeffrey Peek, who has said he will resign as chairman and CEO of CIT Group Inc. at the end of 2009, talks during the dedication of the CIT global headquarters in New York, April 27, 2006.   (AP Photo/Mark Lennihan, file)
The logo of the CIT Group, which has filed for Chapter 11 bankruptcy protection.
The logo of the CIT Group, which has filed for Chapter 11 bankruptcy protection.   (AP Photo/Seth Wenig)
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6 comments
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JoeQ
Nov 1, 09 4:48 PM CST
There go the lines of credit for most small businesses in the USA. But things are "better than expected". Reply
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Netstorm2k9
Nov 1, 09 4:52 PM CST
Yep. That was money well spent. Thanks, Paulson! Reply
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justme
Nov 1, 09 6:17 PM CST
Too big to fail unless you can take the government money with you. Reply
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pete_ess
Nov 2, 09 2:05 AM CST
Love the photo of the fatcat dedicating CIT "Global Headquarters" - a "look at us" building is always a good sign of a company past its peak. Reply
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IN RESPONSE:
yoeydude
Nov 2, 09 4:07 AM CST
nice point
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