46 Bailed-Out Firms Behind on Repaying US

CIT bankruptcy will cost taxpayers $2.3B

Posted Nov 16, 2009 7:38 AM CST

(Newser) – A whopping 46 of the banks the government bailed out last year are behind on their payments, with some going belly-up despite the rescue. The largest so far, CIT Group, is in bankruptcy court today hoping to wipe out the $2.3 billion it owes Uncle Sam, and analysts tell the Washington Post that’s just the tip of the iceberg.

Ex-auto bailout czar Steve Rattner says GM’s unlikely to repay its full debt. AIG might, but it’s dismantling itself and holding fire sales to do so. In the case of CIT, the largest lender to small businesses, “the $2.3 billion was wasted,” says one credit analyst. “They didn’t save CIT, and they didn’t save the taxpayers’ money.” Another analyst says even last year CIT’s business model was “basically broken,” and that there “ought to be a lot of questions asked” about its bailout.

In this July 20, 2009 file photo, the logo of the CIT Group is seen in New York. (AP Photo/Seth Wenig, file)

A building bearing the logo of the CIT Group is seen in New York, Monday, July 20, 2009. (AP Photo/Seth Wenig)

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COMMENTS

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Showing 3 of 3 comments

Ucantusethatname

Nov 16, 2009 4:11 AM CST

This story is not news. The outcome was predictable. Obama has stolen money from the nation's taxpayers--and bankruptcy will result anyway.

tran_tor

Nov 16, 2009 2:35 AM CST

DUH! Maybe these guys have never loaned money to a relative. Feeding money to a business which is failing without changing the way they do business just means it'll take a little longer to fail! I need to introduce TARP to my sister.

0001tr

Nov 16, 2009 2:32 AM CST

oh they can be used for the real purpose intended..bonus'es, Kickbacks to those that voted and passed the bailouts to begin with and to suck the dollars right out of the taxpayers pocket...the plan is working as designed.

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Washington Post (Source Grid »)

Politics • Money

General Motors • Wall Street bailout • TARP • CIT Group

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Mega-Lender CIT Files Chapter 11

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50% Pay Cuts for Bailout Execs Due Today

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(NEWSER) - Taxpayers will wind up making out like bandits on their $45 billion bailout of Citigroup. The Treasury Department has struck a deal to sell its remaining 2.4 billion shares of Citigroup for $4.35 a share, it announced yesterday, bringing the total money made off such sales to $57 billion. Citigroup will pay the underwriting fees on the sale. More»

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46 Bailed-Out Firms Behind on Repaying US

CIT bankruptcy will cost taxpayers $2.3B

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General Motors • Wall Street bailout • TARP • CIT Group

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Mega-Lender CIT Files Chapter 11

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

50% Pay Cuts for Bailout Execs Due Today

Warren confirms cuts to 25 top earners at 7 companies

Taxpayers Still Have $132.9B Stuck in TARP

Government trying to unwind stock without losing on the deal

Taxpayers Will Score $12B on Citigroup Bailout: Treasury

Government strikes deal to sell remaining 2.4B shares

GM Doesn't Have to Pay Taxes

Little-noticed ruling costs government $45.4 billion

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46 Bailed-Out Firms Behind on Repaying US

CIT bankruptcy will cost taxpayers $2.3B

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OTHER STORIES ON OUR RADAR

General Motors • Wall Street bailout • TARP • CIT Group

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Mega-Lender CIT Files Chapter 11

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

50% Pay Cuts for Bailout Execs Due Today

Warren confirms cuts to 25 top earners at 7 companies

Taxpayers Still Have $132.9B Stuck in TARP

Government trying to unwind stock without losing on the deal

Taxpayers Will Score $12B on Citigroup Bailout: Treasury

Government strikes deal to sell remaining 2.4B shares

GM Doesn't Have to Pay Taxes

Little-noticed ruling costs government $45.4 billion

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