I wonder how many credit default swaps are outstanding against CIT?

[Joanne98]

Just saying......

“The credit-default-swap market is telling you default is imminent,” Kevin Starke, an analyst at CRT Capital Group LLC in Stamford, Connecticut, said in a telephone interview. “The bond prices are indicating the pre-pack is likely.”

Corporate Raider

Icahn, 73, who built his reputation in the 1980s as a corporate raider, said this week that CIT debt is worth more in a traditional bankruptcy and proposed to buy holders’ bonds for 60 cents on the dollar in a tender offer lasting 30 days if they reject CIT’s plans.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aCiFMhzdZdPc

[pscot]

1. Goldman-Sachs (who else) expects to collect a Billion

if CIT enters bankruptcy. There needs to be some sort of confiscatory tax regime to deal with these parasites.


Newser) – Troubled commercial lender CIT, circling the drain for more than a year, would cost taxpayers $2.3 billion in shares purchased by the Treasury Department if it files for Chapter 11 soon—but Goldman Sachs, which gave the lender emergency funding, stands to collect a $1 billion windfall if it goes bust. To hedge risk when it loaned CIT emergency funding, bailout-supported Goldman purchased credit default swaps that will pay out if CIT goes bust. Insiders told the Financial Times that Goldman may postpone collecting part of the money.


http://www.newser.com/story/70947/cit-bust-would-cost-us-23b-earn-goldman-1b.html