CIT Goes Bankrupt While JPM and GS Get Even Richer

[Joanne98]

Here we go again: CIT will be allowed to fail since JPM and GS don’t have any finances involved in this bankruptcy, I am assuming. They miscalculated when they let their rival, Lehman Brothers, go down the tubes. To the shock of the two biggest private investment banks, AIG suddenly went under and note that that stupid organization was saved at tremendous cost. China’s economy is growing rapidly and China is now the world’s #2 economy, displacing both Germany and Japan.
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CIT Fails to Win U.S. Bailout as Bankruptcy Looms (Update2) – Bloomberg.com


CIT Group Inc., the 101-year-old commercial lender running short of cash, said the U.S. government would not rescue the company, fueling speculation that it may be forced to file for bankruptcy.

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Talks with regulators have broken off and “there is no appreciable likelihood of additional government support being provided over the near term,” the New York-based firm said yesterday in a statement. CIT, once the biggest independent commercial lender, may seek court protection if no U.S. aid emerges, Standard & Poor’s said this week. The company said it is “evaluating alternatives.”

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CIT Chief Executive Officer Jeffrey Peek failed to convince regulators that fallout from a collapse would threaten the rest of the financial system. Officials at the Treasury, Federal Reserve and Federal Deposit Insurance Corp. have resisted putting more taxpayer funds at risk, on top of the $2.33 billion granted to CIT in December, to keep the lender afloat.

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“The rest of the financial system’ is JPM and Goldman Sachs. We have to keep this in mind. I don’t know why the media talks about ‘the financial system’ when they are referring only to GS and JPM and maybe, Citigroup and a very tiny few indeed. These top 5 banking houses hold 90% of the derivatives market garbage and this is what overhangs all other systems.

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We see banks failing all over the place and nothing happens except the banks fold and insurance is paid and everyone goes home to sulk. But when the top 5 entities are threatened, all hell breaks loose. The government will risk total bankruptcy in order to haul these creeps out of bankruptcy! We take on trillions in obligations in order to recapitalize these crooks.

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CIT obviously has no connections to the Big 5. So it will go under. There will be no hearings about how we must save them or we will all die. But this will impact our economic system at the other levels, the ones where it impacts on the citizenry, not the gnomes. The flaccid response of our government to these events is very obvious. Our political parties are literally owned by or are embodied by the super rich. The mayor of NYC, for example, is a billionaire. Indeed, millionaires and billionaires populate our ‘democracy’ at many levels.

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They concentrate their energy on running parts critical for looting the rest of the nation which is why our red ink is so very out of control. The US economic system took on immense losses so the top banking powers could expand their power base, for example.

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