Mega-Lender CIT Files Chapter 11

Bailed-out firm's move will cost government $2.3B
By M. Morris,  Newser Staff
Posted Nov 1, 2009 4:43 PM CST
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)
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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.