9

What's next for CIT after bankruptcy?

The logo to the CIT Group headquarters is displayed in New York City.

To view this content, Javascript must be enabled and Adobe Flash Player must be installed.

Get Adobe Flash player

TEXT OF STORY

Bill Radke: One of America's biggest lenders, CIT Group, emerged from bankruptcy this week. Marketplace's Amy Scott tells us what might be next.


Amy Scott: It took CIT Group less than six weeks to wash its hands of bankruptcy.

Analyst Brian Charles with RW Pressprich says CIT's bondholders could have pushed the company into liquidation. He says the fact that they didn't is a sign the financial system is stabilizing.

Brian Charles: The smoothness with which this company was able to accomplish this, I think it kind of speaks well to, of the market and its increasing willingness, you know, to fund companies going forward.

So has CIT got a clean bill of health?

James Rybakoff: No.

James Rybakoff is CEO of investment banking firm Akin Bay. He says for one thing, many of the company's clients are in the retail and clothing business. They're in the middle of their make-or-break season.

Rybakoff: And until January, February comes around and see how they did, you won't really know how CIT looks.

CIT's survival is good news for small and medium-sized businesses. They're struggling to get credit these days. But Rybakoff says the company will likely have to cut back on its lending as it recovers.

In New York, I'm Amy Scott for Marketplace.

About the author

Amy Scott is Marketplace’s education correspondent covering the K-12 and higher education beats, as well as general business and economic stories.
saul drexler's picture
saul drexler - Sep 26, 2010

my broker purchased for me 12,000 at 101.00.--value $12,228.67. do not understan--what are the ramifications due to the bankruptpcy--do i lose a;\ll of my mone???

Carlos San Roman's picture
Carlos San Roman - Aug 13, 2010

Algun accionista del CIT, realizò algun reclamo? Si alguien tiene alguna novedad, or favor enviarla a mi correo c-s-r-@hotmai.com. Tenemos que hacer algo en contra de estos ladrones del "primer mundo" Gracias

RONI FALHEIN's picture
RONI FALHEIN - Jan 15, 2010

QUE PASA CON LAS ACCIONES DE CIT GROUP QUE TENIA? ME LAS HAN QUITADO DE MI PORTAFOLIO Y ME DICEN QUE HAN SIDO CANCELADAS. ASI DE FACIL SE SALE DE LA BANCARROTA, BORRON Y CUENTA NUEVA?
TENGAN CUIDADO DE INVERTIR NUEVAMENTE
EN ESTA EMPRESA, NO TIENEN BANDERA,
HACEN LO QUE QUIEREN DEL INVERSIONISTA

Eva Anda's picture
Eva Anda - Dec 12, 2009

I have 100,000 units of CIT old stocks...what is our right to claim it back since they have already emerged from bankruptcy? Shouldn't they came out with fair treat to old supporters?Who's gonna trust them in future?

Tony Baeza's picture
Tony Baeza - Dec 12, 2009

I have a buddy who held $45000 worth of old stock, which is now worth nothing. To see how easily CIT shrugged of its bankruptcy along with its stockholders, even leaves a sour taste in my mouth and I wasn't involved.

Edward Harold's picture
Edward Harold - Dec 11, 2009

I just checked my account on line and my CIT Group bonds are valued at NA. Does that mean that they are gone? They were well rated when I bought them.
Came out worse than the common holder?

Anthony chu's picture
Anthony chu - Dec 11, 2009

what happens to the stocks we bought into the previous CIT did it just went to ZERO?

Piyush P's picture
Piyush P - Dec 11, 2009

What happens to the stock as it transitions into and out-of bankruptcy? If I had 1000 shares of CIT before bankruptcy at $0.26/share, would that investment be worth $29,000 now that it is trading at $29/share?

Alberto Lenoble's picture
Alberto Lenoble - Dec 11, 2009

CIT GROUP TENDRA QUE HACER FRENTE AL JUICIO DE LOS TENEDORES DE ACCIONES ALREDEDOR DEL MUNDO.sera un juicio rapido por daños ,embargos contra activos,cambio de acciones y acciones nuevas.No creo que ningun accionista se quede con los brazos parados.Los daños son enormes y sera contra el Banco y los bonistas que maquinaron esta accion.