CIT group files for bankrupcy.

[Greed and Death]

http://dealbook.blogs.nytimes.com/2009/ ... y-soon/?hp

A financing group that became a bank in order to receive Tarp funds.

Well there goes 2.3 billion in Tarp funds.

Thoughts opinions, outrage at government and/or large corporations ....

[Lackadaisical2]

The time for outrage was a long time ago, at this point its just not surprising.

[Greed and Death]

The time for outrage was a long time ago, at this point its just not surprising.

But I want to riot.

and go around yelling rabble rabble rabble.

[Lackadaisical2]

The time for outrage was a long time ago, at this point its just not surprising.

But I want to riot.

and go around yelling rabble rabble rabble.

yeah, that would be fun, but it doesn't seem like people really get upset about this type of stuff anymore. Honestly its too much work, *stuffs his face and turns on the boob tube*

[SaintB]

There goes another one.

[Yootopia]

Oh ffs.

[Chrobalta]

The feds should break it up into smaller companies, I am tired of the big corporations...

[Neu Leonstein]

:palm:

The feds should break it up into smaller companies, I am tired of the big corporations...

The smaller ones are going bankrupt even faster.

[Bergnovinaia]

http://dealbook.blogs.nytimes.com/2009/11/01/cit-to-file-for-bankruptcy-soon/?hp

A financing group that became a bank in order to receive Tarp funds.

Well there goes 2.3 billion in Tarp funds.

Thoughts opinions, outrage at government and/or large corporations ....

Suprise, suprise. Another one bites the dust. Seriously though, some of these banks/coorperations are managed by morons.

[Greed and Death]

The time for outrage was a long time ago, at this point its just not surprising.

But I want to riot.

and go around yelling rabble rabble rabble.

yeah, that would be fun, but it doesn't seem like people really get upset about this type of stuff anymore. Honestly its too much work, *stuffs his face and turns on the boob tube*

*SMASHES your BOOB tube* now start rioting or I smash the computer next.

[Dododecapod]

The mistake was in offering the bailouts. If companies are in a position to fail, it's probably because of bad management, and a money infusion won't fix the problem. They'll just crash later, and harder. Let the weak fall.

[Erich Dahmer]

Just another example of the state trying to preserve the oligopoly it created and failing miserably. Hooray for "mixed-economies"!

[New Chalcedon]

Well, well, well.

Perhaps, when this latest failure by a "Too big to let fail" corporation doesn't destroy the economy, the Fed and the treasury will finally get their collective heads out of their backsides and realise that the only way to bring back stability to the financial system lies in four steps:

1. Reinstate the Glass-Steagall Act of 1933. This Act prohibited savings banks from playing the stock markets and other forms of risky investment, ensuring a stable base of savings for the benefit of the ordinary Mom and Pop. The Republicans, led by Phil Gramm, gutted it throughout the 1980s and 90s, then finally repealed it by a veto-proof majority in 1999 (The Gramm-Leach-Bliley Act). So don't blame Clinton for signing it - a vote of 90-8 is a clear indication that the Senate can simply overrule a veto, making it pointless.

2. Which actually comes before (1) above. Get rid of the corporate lobbyists. As long as corporate lobbyists are permitted to draft regulatory bills (as with the GLB Act), said bills will favour corporate interests at the expense of the economy as a whole. Obama has been immensely disappointing in this regards - despite promising from day 1 that he'd get rid of the lobbyists, he's appointed them profusely. Source

3. Break up the immense corporations. At the present time, their defenders are partially right - if a megacorp fails, the repercussions are felt throughout the whole economy. This must end in order to re-create a truly free finance market, which should in turn lend itself to transparency and stability.

4. Reinstate market discipline. Once the "Too Big To Let Fail" corps have been dismembered, any failing corporation can be left to fail without smacking the entire financial system for six. This, in turn, will reinforce prudential managament patterns amongst financial sector managerrs which will ensure future stability.

Oh, yes - and now that I think of it -

5. Charge the analysts at Moodys, S&P and other Credit Ratings Agencies who knowingly misrated these institutions. Some of them were even dumb enough to keep their correspondence in which they discussed deliberately misrating clients' bonds for the sake of bigger fees. (Source: Paul Mason, Meltdown: The End of the Age of Greed.) These peoples' jobs were critical to the functioning of the system - it was their job to sound the warning bells when they saw problems. Not only did they fail to give warning signals, they deliberately attempted to cover-up the problems to maximise their own profits. Throw them in jail, I say.

[Neu Leonstein]

1. Reinstate the Glass-Steagall Act of 1933. This Act prohibited savings banks from playing the stock markets and other forms of risky investment, ensuring a stable base of savings for the benefit of the ordinary Mom and Pop.

Fail. Neither Bear Stearns nor Lehman Brothers would have had anything to do with Glass-Steagall.

They would've failed, pulled out the rug from underneith interbank markets and sent financial markets into freefall, causing the same sort of stuff to happen to small and large commercial banks, regardless of their direct involvement in risky asset holdings. Add to that the collapse in the housing market and what that would have done to their assets, and the result would not be all that different to what we actually observed.

[West Failure]

and go around yelling rabble rabble rabble.

I would be careful about that. It is getting near Christmas and someone might mistake you for a turkey.

[Greed and Death]

1. Reinstate the Glass-Steagall Act of 1933. This Act prohibited savings banks from playing the stock markets and other forms of risky investment, ensuring a stable base of savings for the benefit of the ordinary Mom and Pop.

Fail. Neither Bear Stearns nor Lehman Brothers would have had anything to do with Glass-Steagall.

They would've failed, pulled out the rug from underneith interbank markets and sent financial markets into freefall, causing the same sort of stuff to happen to small and large commercial banks, regardless of their direct involvement in risky asset holdings. Add to that the collapse in the housing market and what that would have done to their assets, and the result would not be all that different to what we actually observed.

My understanding is most of the failures have been from banks that are just investment banks , or are just traditional banks.
Few of the banks that have broken the Glass Steagall barrier have failed.
Seems like a return to Glass-steagall would force more banks into failing categories.

[Charlotte Ryberg]

Thoughts opinions, outrage at government and/or large corporations ....

All of the above, in fact. I am concerned that the real victims of the global shock are in fact savers, not borrowers. I feel like there are so many banks holding on to an unstable table or something.

If the loan was granted before Obama came to power, then another Bush legacy in my opinion of a poorly planned crisis management scheme.

[NotnotgnimmiJymmiJ]

Supposedly they bailed out CIT and sacrificed that $2.3 billion to avoid disrupting the retail supply chain just before Christmas.

So Obama saved Christmas.

[Greed and Death]

Supposedly they bailed out CIT and sacrificed that $2.3 billion to avoid disrupting the retail supply chain just before Christmas.

So Obama saved Christmas.

that was a 2008 event.
So Bush bailed them out.

Can't fault Obama for this.

[NotnotgnimmiJymmiJ]

Supposedly they bailed out CIT and sacrificed that $2.3 billion to avoid disrupting the retail supply chain just before Christmas.

So Obama saved Christmas.

that was a 2008 event.
So Bush bailed them out.

Can't fault Obama for this.

whoops!

[Gauntleted Fist]

Supposedly they bailed out CIT and sacrificed that $2.3 billion to avoid disrupting the retail supply chain just before Christmas.

So Obama saved Christmas.

that was a 2008 event.
So Bush bailed them out.

Can't fault Obama for this.

So Bush saved Christmas.

[Greed and Death]

Supposedly they bailed out CIT and sacrificed that $2.3 billion to avoid disrupting the retail supply chain just before Christmas.

So Obama saved Christmas.

that was a 2008 event.
So Bush bailed them out.

Can't fault Obama for this.

So Bush saved Christmas.

No, no matter who bailed out this company I think the action was wrong.

[NotnotgnimmiJymmiJ]

No, no matter who bailed out this company I think the action was wrong.

Why do you hate Christmas?

[Greed and Death]

No, no matter who bailed out this company I think the action was wrong.

Why do you hate Christmas?

Because i am an atheist,
Never mind the juvenile record of destroying nativity scenes.

[Lacadaemon]

Neither Bear Stearns nor Lehman Brothers would have had anything to do with Glass-Steagall.

BSC was systemically important. Glass-Steagall is cool, not because of who you have to save, but rather because of who you can cut loose.

But if you think that BSC was no never mind, then I'm sure the Maiden Lane I, will be happy to puke up its assets.