Slowly Sheila is climbing the ranks in my book. She might be my choice to replace BB.

The FDIC, which has backed $274 billion in bond sales under the TLGP since Nov. 25, is concerned that guaranteeing CIT debt would put taxpayer money at risk

No, they wouln't want to do that.

"Slowly Sheila is climbing the ranks in my book. She might be my choice to replace BB. "

No surprise Geithner supposedly tried to get her fired, claiming she wasn't a "team player".

without guarantees, CIT = dead. Think GE Capital without guarantees.

Yancey Ward (profile) wrote on Thu, 7/9/2009 - 6:57 pm

That is debt discrimination!

I think we are all in agreement that there should be No Debts Left Behind!
(we just vary in our interpretation of that statement )

Yancey Ward (profile) wrote (in reply to...) on Thu, 7/9/2009 - 5:00 pm replyIgnore userThat is probably last April.

They didn't mention what year, so you are probably right. I would be interested to know.

What's the point of becoming a bank if it doesn't make you Too Big To Fail?

Sheesh. The nerve of some people.

Kinda OT: What I find amazing about this whole Fed debate is the lie (nothing else really to call it) that the Fed has to be "independent". Sure, we don't want Barney Frank setting monetary policy, but this cry for "independence" is a canard.

The Bank of England is not owned by its bankers. While the English screwed up as much as we did, when TSHTF England nationalized some of their banks and kicked out management.

in Canada, where they did a pretty good job of regulating their banks, the Bank of Canada is owned by the government, and is audited by external auditors appointed by the Finance Minister. It is "independent" in that it doesn't take direction directly from the politicos, but the politicos can dig under the covers if they want.

When the Fed says it wants to stay "independent", I think what they mean is they want to keep their activities secret. Independence and secrecy are two different things, and going on 60 Minutes does nothing for transparency. Stay home, and just open yourself up for audit. Unless you have something to hide.

Lets just do a Auto BK and dump all the bad banks into one and screw all those lousy investors. Maybe Fiat wants a free bank?

Free toasters (banks) with each Auto firm you buy.

Yep that will get it done. LOL

In other words, it is just another bunch that ran for the feds helping hand with manure on the balance sheet:
CIT’s measures to improve its credit quality, such as by transferring assets to its bank, have been insufficient, the person said.
That would be because the assets are not worth much as the businesses turn turtle. Duh.

CIT, the century-old lender to 950,000 businesses, became a bank in December to qualify for a government bailout and received $2.33 billion in funds from the U.S. Treasury. The New York-based lender has reported more than $3 billion of losses in the last eight quarters, faces $10 billion of maturing debt through 2010 and hasn’t had access to the corporate bond market in more than a year, according to data compiled by Bloomberg.

Without access to TLGP, CIT may default as soon as April, when a $2.1 billion credit line matures, according to Fitch Ratings.

April? I thought this was news!! April is soooo far away- we have much more immediate failures to navigate!

Gotta love Shiela, keeping the CCC- stuff off of the FDIC books when she can!

Someday this war's gonna end...

Seems like only a couple of months ago, but must be the other side of that cold bit, that CIT and these fine fin stocks could be brought up on the SORT MAJOR LOSERS function on bloomie:
Pr Ch % Vol
CIT GROUP INC 1.86 0.10 5.68 22,063,321 18:40
HARTFORD FINL SV 10.76 0.58 5.70 13,451,540 18:40
GENWORTH FINANCI 5.63 0.31 5.83 19,701,047 18:40
WESTERN UNION 16.49 0.91 5.84 9,586,446 18:40
STARWOOD HOTELS 20.19 1.27 6.71 9,024,091 18:40
WYNN RESORTS LTD 31.93 2.02 6.75 5,776,371 17:20
MARSHALL &ILSLEY 4.50 0.30 7.14 10,063,528 18:40
HUNTINGTON BANC 3.67 0.27 7.94 41,873,901 17:20
KB HOME 12.44 1.06 9.31 6,184,265

But lookit em now! Crisis over! Big up day today, so CIT is down about only 75% YOY?

C

Goldie Sax needs more carrion ...

so GS will buy them for pennies on the dollar. see if the they're too small to save then...

OT: i had to watch the first 10 minutes of Dennis Kneale's show tonight. I can't tell if his opening monologue is some type of slam poetry, especially with all of DK's hand gestures. Still trying to figure out how the hell he's made it so high in the financial media world. must have nekked photos of Immelt

Counterpointer, you are spanking a spambot, methinks.

Dennis Kneale's show tonight.

~~~~

Yet another sign of the Obamalypse ...

CIT has assets?

sm_landlord - I know, I'm practising for HAL.

C

"seriously, who the hell would have green-lighted "The Real Deal with Dennis Kneale.""

Probably the same idiot who didn't renew Dylan Ratigan's contract.
The people running CNBC are __________ (insert derogatory term of choice)

There guys must really be toast ... whatever happened to "mark to profitability"? It worked for BAC and the other TBTF guys.

CIT execs just don't know how to run a proper criminal enterprise ....

buzzsaw99 (profile) wrote on Thu, 7/9/2009 - 5:33 pm replyIgnore user

//They won't have the money in April, it will all be spent on bonuses. //

But but that is the American Way to Wealth.

CIT, your Mercy Seat is ready:

YouTube - Johnny Cash - The Mercy Seat

C

CIT is simply not big enough for Bair to worry about losing political points over.

All of you who think she is in anyway on your side need to read a bit more.

Sheila hasn't received the memo from Geithner/Obama/Bernanke yet. She'll come around. After all, USDs are only play money.

CIT, your Mercy Seat is ready:

Good call. Johny could always call out the hangman by name.

CIT - the hell does that mean? Plow em under.

Earlier, someone posted a link to Paul Mylchreest on the Inflation-Deflation debate

An interesting assertion in the piece was that it's almost impossible to rent a safe deposit box in Switzerland, because they are spoken for and packed full of glod at this point.

There was also a link there to a Kondratieff Wave presentation that is rather depressing...

Spoke too soon, the SEC will make sure a "fair price" is given for Cal IOU's which means the full backstop is in action. My bad. Back to your regular programming.

This $17 Trillion Divorce Won’t Be a Pretty One: William Pesek
This $17 Trillion Divorce Won’t Be a Pretty One: William Pesek - Bloomberg.com 

Commentary by William Pesek

July 10 (Bloomberg) -- Returning from China last month, U.S. Congressman Mark Kirk had a bearish take on a high-level visit by American officials. Treasury Secretary Timothy Geithner claimed the U.S.’s biggest creditor voiced great confidence in its debt. Kirk, an Illinois Republican, came back with the opposite impression. “China is beginning to cancel Congress’s credit card,” he told Fox News on June 10. It “doesn’t want to lend much more money to the United States and especially is worried about the Fed’s policy of printing money to buy new debt.”

here is the link

AIG Seeks Federal Blessing for Another Round of Bonuses - washingtonpost.com

Good grief,EC that is not a hole it is a mine! a Goldmine!

aig bonuses: licking the bowl after plunging the toilet

Welch interrupted MaCarthy

"Let us not assassinate this lad further, Senator. You've done enough. Have you no sense of decency, sir, at long last? Have you left no sense of decency?"

// The ending of McCarthyism keeps coming to mind as I watch the political/banking drama in this country. I'm starting to see evidence of pushback developing. //

Joni Mitchell = Canadian Goddess

C,

You are a very funny man sometimes.

CIT cannot access the commercial paper market as I read it. It has been disintermediated. Hence BK.

Blanning said

the name says it all

OT: I got a message from a recruiter today. Green shoots?

Note from Susan Haddad
Today, I am networking with Engineers and individuals with an engineering background in hopes to find a few Mechanical Design Engineers and Materials Science Engineers. These job opportunities are for a widely recognized Firearms and Ammunition Company, who is hoping to find good engineers with a similar background. These positions are very specific in their job requirements. As well, the Materials Science Engineers would have experience with various metals, ceramics and polymers. This company offers an excellent relocation package. If you know anyone, please send my information along, or call me at 800-XXX-XXXX ext. 309 Thank you for your time. Susan Haddad, VP, Operations

Sheila Bair ++
Elizabeth Warren +++
Brooksley Born ++++

All the people with brains and balls this decade have turned out to be women.

SEC says Cali IOUs are securities
California IOUs can be considered securities: SEC - MarketWatch

C Coinz,

Was that in response to the Palin jab?

Cali IOUs are unbacked pieces of paperthat will not be paid.

have you ever visited Cali?

cali is not a flat piece of real estate that will become an inland sea after global warming

How do you think Palin would do on 'reigning in the banksters'? Or Arnie, for that matter.

Been to Cali many times.

Great respite from Az summer heat.

Something tells me Arnie won't be on the national ticket.

But then he's got a nationwide size of a problem to deal with right now.

so you commit to the unbacked pieces of paper comment? site seen?

How do you think Palin would do on 'reigning in the banksters'?

I didn't get to listen to it (thank god), but there was a segment on Kudlow tonigt that read at the bottom "Palin for Fed Chairman." No idea what that was about, cuz I don't think even Kudlow is that off the deep-end.

Re: AIG bonuses. They are paying bonuses mid-year?

Man, that place really was corrupt. Unless that is common practice in insurance companies? I have never heard of it in banks.

Sounds fishy to me.

"In November, AIG's top seven executives, including Chairman Edward M. Liddy, agreed to forgo their bonuses through 2009. Then, in March, facing pressure from Treasury Secretary Timothy F. Geithner and other government officials, the company restructured its corporate bonus plans for the remaining top 50 executives. As part of this agreement, the senior executives were to receive half their 2008 bonuses -- which totaled $9.6 million -- in the spring, with another quarter disbursed on July 15 and the rest on Sept. 15. The last two payments would depend on whether the company made progress in revamping its business and paying back bailout money to taxpayers. "

Hmmm, so their bonuses are dependent on making progress. And how is that going? Have "we" been paid back yet?

All I know is they sold a bunch of stuff, and renamed their overseas company. Will it cover $120B? I don't think any has been returned yet.

AIG bonuses. They are paying bonuses mid-year?

I think these were restructured earlier because of the brouhaha. Now, AIG's trying to jam them through by getting Feinberg's blessing (i.e. political cover).

so much for Liddy making $1.

So Goldman wants this one dead too, eh?

Do you think human society would reinvent "keynesian" economic policy in every cycle of civilization? Is this type of magical, wish-fulfillment thinking an intrinsic part of the human psyche? You'd hope that reason would have had some sort of built in defense mechanism or alarm system.

I think you mean rein rather than reign.

Yes, sorry. I hate making mistakes like that. Bad coinz.

Something tells me Arnie won't be on the national ticket.

Perhaps that something is Article II, Section 1, Clause 5 of the Constitution. Arny was not born in the US.

Why do people say the IOU's are unbacked?

I thought CA promised, really promised, to repay them in a couple of months with interest?

Are you saying...they're gonna make more IOUs...to repay the holders of these IOUs??

Craigslist will probably nix the ads, otherwise it is acting like an exchange. Too bad for collectors (who haven't purchased them already).

Government unemployment should match private unemployment. Everyone needs to bleed.

barfly,

He was born in Austria.. even better!

bbartlog,
quite the list, care to elaborate??
insert humor here

bANK Failure

your link to the joni mitchell performance

alone and ...magnetic

always loved her music, thanks

cali iou's rated xxx by major rating agencies

strictly refundable in the San Fernando Valley

Missing the Point on Stated Income Loans

Bond girl,
as i posted, as long as no one breaks ranks, all will be well. All AAA rated, all guaranteed, no problem. What could go wrong??