Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook

'Serpent Pastor' Dies of Snake Bite Mack Wolford believed faith compelled him to face the risk »

CIT Bust Would Cost US $2.3B, Earn Goldman $1B

Taxpayers shares could go up in smoke while Goldman gains

By Jason Farago, Newser Staff

Posted Oct 5, 2009 4:29 AM CDT

(Newser) – Troubled commercial lender CIT, circling the drain for more than a year, would cost taxpayers $2.3 billion in shares purchased by the Treasury Department if it files for Chapter 11 soon—but Goldman Sachs, which gave the lender emergency funding, stands to collect a... Read full story »

COMMENTS

Read the comment policy

You need to Log in to Newser to comment. Don't have an account yet? Sign up now!

5 comments

A snapshot of the day's best news stories.

View Larger Grid

All Today Yesterday Pick a Date

What's Popular Now on Facebook

'Serpent Pastor' Dies of Snake Bite

Miami Face-Eater Identified

Financial Times (UK) (Source Grid »)

Politics • Money

Goldman Sachs • bankruptcy • risk management • bailout • Chapter 11 • credit default swap • CIT Group

More Newser Stories

Mega-Lender CIT Files Chapter 11

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

(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. More»

Bankruptcy Looms as Feds Refuse to Bail Out CIT Group

Treasury 'drawing line in sand,' says analyst

(NEWSER) - The Obama administration has rejected CIT Group's pleas for a bailout, and the troubled commercial lender is likely to file for bankruptcy as early as today, reports the Washington Post. CIT—which has already received $2.3 billion in TARP funds—provides financing to close to a million small- and medium-sized businesses, thousands of which may be badly hurt by the lender's demise. More»

Pink Slime Maker Files Chapter 11

AFA Foods blames sudden drop-off in demand for beef products

(NEWSER) - Apparently it's going to take more than a couple of governors chowing on a burger to save pink slime: AFA Foods, a leading manufacturer of "boneless lean beef trimmings," today filed for Chapter 11 bankruptcy protection, citing a steep drop-off in demand for its products. AFA will this week suspend operations at a California plant, reports the Wall Street Journal , and had previously struggled before a plan to return to profitability "was quickly undermined by market forces beyond the debtors' control," according to court documents. More»

Kodak Files for Bankruptcy

Future looks bleak for photography pioneer's workers, retirees

(NEWSER) - The once-mighty Eastman Kodak company has filed for bankruptcy. The 131-year-old firm, unable to reinvent itself quickly enough for the digital age, filed for Chapter 11 bankruptcy protection this morning after running out of cash to fund its turnaround, the Wall Street Journal reports. The company says it has secured a $950 million line of credit from Citigroup to allow it to keep operating during restructuring. More»

Hostess Files for Bankruptcy

Second Chapter 11 filing in recent years

(NEWSER) - Bad news for Twinkies lovers: Hostess filed for Chapter 11 bankruptcy protection today. But never fear, the company will continue operating during bankruptcy proceedings with help from a $75 million loan. "We remain hopeful that we can reach an agreement that will allow us to amend our labor contracts so that we can emerge from Chapter 11 as a highly competitive company that provides secure jobs for our employees," said the president and CEO. Not helping matters is the fact that sales are declining, particularly as consumers move away from Hostess' signature white bread to whole grains. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

CIT Bust Would Cost US $2.3B, Earn Goldman $1B

Taxpayers shares could go up in smoke while Goldman gains

Goldman Sachs • bankruptcy • risk management • bailout • Chapter 11 • credit default swap • 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

Bankruptcy Looms as Feds Refuse to Bail Out CIT Group

Treasury 'drawing line in sand,' says analyst

Pink Slime Maker Files Chapter 11

AFA Foods blames sudden drop-off in demand for beef products

Kodak Files for Bankruptcy

Future looks bleak for photography pioneer's workers, retirees

Hostess Files for Bankruptcy

Second Chapter 11 filing in recent years

About Us

Site

Community

Site Maps

Tools

More News

What is Newser?