LOL, Geddy I'd be scared U empire collapsing!! CIT Group Scrambles to Survive
LIBERATOR
it's RUSH owned. And collapses it does due to being runned like drug
addicts own it. OMG RUSH are addicts although it's controlled
addiction. "POWER OVER OTHERS BECAUSE WE CAN'T FIT IN" and that's the
negative energy you are RUSH, and if you were positive energy as you
insist you are you wouldn't be suffering wouldja? Oh wait you guys are
masters at vindictive deception, perhaps you have deceived yourselves
as you have done so many others. Dick/Warner Brothers are hardly done
with you. They informed me they could drop all of your corporations at
one time but then there would be a flood of unemployment and possible
social chaos, so one at a time... Geddy, you're so damn smart what is
going on? What happened you mystic? You genious? What is wrong with
you? What is misfiring? What calculations went wrong? DreamTheater
better start worrying about themselves as you won't be there to keep
them out of prison for their collaboration in murder. Perhaps the
members of DT should consider testifying against you RUSH.
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http://online.wsj.com/article/SB124744080839729811.html
http://www.cit.com/media-room/executive-sourcebook/executive-committee/index.htm
JULY 14, 2009 CIT Group Scrambles to Survive, Avoid a Run
By JEFFREY MCCRACKEN and SERENA NG
CIT Group Inc. officials spent the weekend trying to hash out a plan
that would help calm markets and convince customers and investors that
it can work its way out of a deepening liquidity crunch.
Over the weekend, CIT representatives held discussions with members of
Congress, government officials and regulators as they became
increasingly nervous hundreds of small and midsize business customers
may rush to withdraw funds or try to draw down credit lines.
CIT executives were worried that customers would be rattled by reports
over the weekend that it hired a prominent law firm to prepare for a
possible bankruptcy filing after so far failing to get additional
government assistance.
Company officials and its advisers scrambled to accelerate a plan to
address the company's long-term funding needs. Part of that plan,
which has been in the works for some time, involves transferring more
assets to CIT's Salt Lake City bank and moving cash to the holding
company.
In a statement late Sunday, CIT said it is in "active discussions with
its principal regulators on a series of measures" to improve its "near-
term liquidity position."
The options being discussed include solutions that don't involve
access to the FDIC's Temporary Liquidity Guarantee Program, even
though CIT's application to that program is still pending.
The company said it is trying to transfer more assets, such as its
trade finance and vendor finance businesses, to its bank. If those
near-term transfers are approved by regulators, they would help
improve its liquidity position, CIT added.
On Monday, CIT shares sank 22% to $1.20 in early trading as pressures
on the lender mounted.
CIT had hoped to get some sort of short-term emergency financing from
the government. But it was unclear whether government officials would
be willing to step up. They have long felt CIT is not a systemic risk
to the financial system and other lenders could step in to provide
loans and services to small and midsize businesses, a CIT specialty.
More
Geithner Monitoring CIT Developments Econ: Americans Have More Faith
in Finance Business Owners Ache as CIT Scales Back
07/13/2009While not as well known as the big commercial banks, CIT is
an important test case for the Obama administration. It gives
indications of the government's willingness to get involved with
financial institutions that aren't deemed as too big to fail, but that
play a significant role in the economy.
CIT is a lender to nearly a million mostly small and midsize
businesses and companies, and while its failure may not jolt financial
markets in a large way, it could hurt the flow of credit to many
businesses to whom banks traditionally won't lend.
The government gave the bank-holding company $2.3 billion under the
Troubled Asset Relief Program last year but so far hasn't included CIT
in a separate program that would allow it to issue debt at low
interest rates.
While CIT has limped through the credit crisis, the lender is nearing
crisis point, facing $2.7 billion in debt due from now till year end
that investors worry it may not be able to make.
Credit-ratings firms have cut the lender's debt ratings deep into
"junk" territory, and bond analysts last week began speculating the
company may be forced to file for bankruptcy. CIT shares fell to their
lowest level since the company's 2002 initial public offering.
About 700 companies have a total of $3.9 billion in undrawn revolvers
from CIT, according to documents reviewed by The Wall Street Journal.
Many are small businesses that obtained revolving facilities of about
$10 million to $50 million in size. CIT is the sole or main lender to
two-thirds of these companies, and a failure of the lender would leave
many without access to funds.
The lines act like a credit card -- borrowers are able to run up debt
and pay it off. If many companies tried to tap their CIT credit lines
at the same time, it could put further financial strains on CIT.