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Gimme a G... Goldman Sachs Cuts CIT Loan to $2.125B
According to a Reuters source- the nice guys at Goldman have trimmed the rescue loan to CIT Group to just $2.125 billion.
CIT paid $285 million in fees to Goldman for reducing the loan, putting up an initial $250 million in collateral. Goldman agrees to stand behind the loan should and when CIT files for bankruptcy.
Goldman was due a payment of $1 billion when the CIT Group did file for bankruptcy- which many will agree- is coming as sure as Christmas.
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Just imagine if GS had inside info on this matter. They could profit handsomely!
Will they really be allowed to fail? They have a lot of media attention... can the adminstattion afford to let them fail and tarnish the perception of recovery?
BTW...anyone else notice Toll Brothers got an upgrade by Citi...what a joke.
Allowed to fail by the administration? What planet are you from?
CIT will fail or not fail depending on how Goldman Sachs manages to structure it to make the most money.
Not only am I in the wrong business, everyone is. CIT paid 13.4% on a (reduced) loan. What kind of people think that is a good deal? People who can't pay the money back.-50
Not only am I in the wrong business, everyone is. CIT paid 13.4% on a (reduced) loan. What kind of people think that is a good deal? People who can't pay the money back.
Not only am I in the wrong business, everyone is. CIT paid 13.4% on a (reduced) loan. What kind of people think that is a good deal? People who can't pay the money back.
Not to mention that your best assets have just been cherry picked as collateral (I am guessing GS put the list together) along with a alot of your cash just before the inevitable filing. Leaving everyone else to scratch there ass and thinking they should of donated more to the political campaigns. GS ROI on Obama's campaign contributions must be approaching 10K%, maybe they should make some hats OBAMA 10,000% ROI when the time comes.......
I'd loan money to Wimpy for a hamburger today if I knew Uncle Sam would pay me back on Tuesday.
Guess I was right....for today at least... CIT rocketing up...
That's like making a deal with a really well dressed loan shark.
To the freaking moon, you CIT morons!
CIT is finished. There business is simply unsustainable and there is too much money to be made from a bankruptcy.
Yes this tells you roughly what Goldman thinks it will get back on those loans in bankruptcy and at a guess I would say about 20 cents in the dollar. Goldman roughly expects 600 million back of which it gets to cherry pick 250 million of assets now and get 285 million in fees. Goldman is just getting their loot out so that just a debt riddled carcase is left for the regulators to pick up. This way Goldman's books any interest as a bonus and gets to look squeeky clean when they get nothing for the remaining 2 billion. With deals like these the overheads for CIT must be a drag on any prospect of competativeness. It will be interesting to see what Carl Icahn makes of this.
I'm not so sure that Christmas is coming this year.
+10
this is the poison pill that will sink cit right on schedule