um, yeah, sure. I think you are the one that needs to awaken my friend. There is MUCH that has been kept under wrap - the govt/taxpayers have over 3 BILLION in CIT - I guarantee you much was kept quiet! Especially if C and BAC (also receiving TARP funds) had direct exposure to them.
WAIT AND SEE and MARK my words! BUY BUY away....lol
Do you understand what a prepackaged bankruptcy is?
This will have zero impact on the creditors. I tried to outline this last night. The creditors are getting .7 on the dollar and then will receive the rest in company equity when it emerges from bankruptcy which they indicated will be 60 days.
There is reorganization and liquidation. Lehman was a liquidation, this is a re-org funded by the creditors who voted 90% for a reorganization. So to be honest, if I owned bank of america stock I would want them to be a heavy debt holder of CIT---they can erase the debt and reorg the business to profitably and then sell off the equity stake while holding the debt.
The creditors of CIT will make out like bandits when this is all over with. I hope you understand this very basic principle of liquidation vs. reorganization that is fully funded by your creditors.
Good informative Post. Thank you, and thanks on behalf of the newbies here who do not know the first thing about Wall St., banking, and how the system works. Lastly, in this organized and CONTROLLED BK, the government is holding much of the paper via different creditors. It will have ONLY a positive effect on BAC.