CIT, one of the largest commercial lenders in the US filed for bankruptcy. The company filed for Chapter 11 protection on Sunday, allowing for a restructuring of its debt, while still lending to thousands of small and mid-size businesses.
But while senior debt holders are out only 30 % on their investment, taxpayers are left carrying the bag once more and have lost the $2.3 billion lent to CIT this summer.
Professor William Black, a former regulator, is bewildered and said no one else is responsible for this other than Treasury Secretary Tim Geithner.
Geithner “Burned Billions” And Shafted Taxpayers (Again) In CIT
