• 10 Jul 2009 at 10:19 AM

CIT Falls Short Of Even Government Standards

By Greg Michaels

It turns out there is a limit to the list of well-run companies that government agencies are willing to bail out or prop up. CIT Group has been trying to convince SheBair and her underlings that they are worthy of FDIC backing for new bond issuance under the Temporary Liquidity Guarantee Program. However, so far CIT’s application has fallen short of the lofty standards set by FDIC guarantee recipients such as GMAC and SheBair would prefer to worry about selling her house rather than CIT’s deteriorating financial condition. The rating agencies have even done their part to unintentionally throw some salt in CIT’s wounds. GMAC qualified for the FDIC’s training wheels with C/CCC (Moody’s/S&P) ratings, but Ba2/BB- rated CIT did not.
FDIC Said to Withhold CIT Debt Guarantees Due to Risk [Bloomberg]

Comments (8)

  1. 1
    Posted by guest | July 10, 2009 at 10:28 AM

    Greg, did the Nails poster below give you a hard-on?

  2. 2
    Posted by guest | July 10, 2009 at 10:33 AM

    Yes.
    Greg

  3. 3
    Posted by guest | July 10, 2009 at 10:34 AM

    Not trying to break your balls Greg (ok yeah I am) but going forward lets include links to past articles referenced…specifically…”SheBair would prefer to worry about selling her house”
    Overall, I’m seeing a lot of improvement in your work so keep it up

  4. 4
    Posted by guest | July 10, 2009 at 10:37 AM

    @3 – Greg, stop giving yourself messages of encouragement. Its weird.

  5. 5
    Posted by guest | July 10, 2009 at 10:39 AM

    I would just like to take this opportunity of thanking Greg for his posts, which I find to be more informative and entertaining than any of the comments which follow, whose quality is roughly on par with the insults exchanged by junior high boys in the locker room following their being beaten by the girls at kickball.
    -Not Greg’s Mom

  6. 6
    Posted by guest | July 10, 2009 at 10:52 AM

    @5, he is getting better and the standard BLANUS, homo, etc comments are beyond lame…
    Remeber the 3 c’s Greg: Clear, concise and cynical.
    Not Greg either

  7. 7
    Posted by guest | July 10, 2009 at 11:02 AM

    Is CSE next?

  8. 8
    Posted by guest | July 10, 2009 at 12:30 PM

    all we learn from this is that GS does not have a position in CIT, and therefor it is not worth saving

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