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CIT's bankruptcy raises new questions about bailoutTaxpayers on hook as some bailed-out firms prove frail
With CIT in bankruptcy, U.S. is faulted for investing in weakened companies
By Tomoeh Murakami Tse
Washington Post Staff Writer
Monday, November 16, 2009
NEW YORK -- A year ago, the financial system was tottering and government officials arranged a $2.3 billion emergency cash infusion into CIT Group, a troubled lender to small businesses.
Today, CIT is in bankruptcy court, and the taxpayers' investment is on the brink of being wiped out. It would be the largest loss so far from the government's massive rescue of the financial system, but it isn't likely to be the last.
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Analysts expect more bailed-out firms to fail in the months ahead. ....
What a colossal waste of money.