Tuesday, October 13, 2009
CIT in Trouble
This has been brewing for some weeks now, but today (Monday Oct. 12) Reuters is reporting CIT Group may soon be filing Chapter 11 bankruptcy. Citigroup announced a couple of weeks ago that they would be closing many branches in an effort to scale back their operations. Looks like that isn't enough.
Citigroup is one of the largest recipients of government aid via the 'Troubled Asset Relief Program' (TARP), where they got $2.3 billion in December. CIT has more than a million customers, and over $70 billion in assets, but many of their borrowers are small businesses who are struggling in the current economic atmosphere. This does not bode well for the economy here, or abroad.
I wasn't planning to write any Doom and Gloom, but my spirits are down. My neighbor's son is still in a coma, and now has developed pneumonia in both lungs. Even the ventilator at the max isn't getting his O2 levels up enough...