CIT Group Files for Bankruptcy

[dasmom]

CIT Group Files for Bankruptcy

After months of efforts to stay alive, the company filed for
Chapter 11 -- but under a so-called prepackaged bankruptcy
plan that will enable it to emerge from court protection by
the end of the year.

Read More:
http://dealbook.blogs.nytimes.com/2009/11/01/cit-to-file-for-bankruptcy-soon?emc=na

[Social Apocalypse]

How does this affect CitiMortgage? I am not too knowledgeable about which ARM of CITI is the Mortgage unit!

[dasmom]

This is taken directly from the CitiMortgage website --

©2009 CitiMortgage, Inc. CitiMortgage, Inc. does business as Citicorp Mortgage in NM. CitiMortgage, Inc. is an equal housing lender. Citi and Citi with the arc design are registered service marks of Citigroup, Inc.; citimortgage is a registered trademark of Citigroup, Inc.

It will be interesting to see how Citigroup streamlines its lines of business and how that may impact outstanding mortgage accounts. I don't think we'll know until more details are provided about the Chapter 11.

dasmom

[sh1974]

Cit Group is an entirely different company than Citi if I am not mistaken.

[dasmom]

As I understand it CitiMortgage is under the Citigroup umbrella. Perhaps someone else can provide clarification?

[Sunbeam]

Originally Posted by sh1974

Cit Group is an entirely different company than Citi if I am not mistaken.

You are correct. CIT is completely separate from CITI. Unfortunate name similarity. CIT makes loans to small businesses. This will affect many people, but not those of us dealing with mortgage companies. Different deal altogether. You can read up on CIT if you google them. Just don't forget not to add in the final I!

[davephx]

CIT will be the 5th largest bankrupcy in US history (nothing whatsoever to do with CitiGroup)

I supplies working capital for inventory etc for a huge number of small businesses that can't get bank financing.

It got a $2.8 Billion initial bailout but recently Treasury denied any more funding resulting in the BKK.

[Social Apocalypse]

Gosh I feel silly for missing that. I must have "citi" on the brain

[BadBobMo]

So it look's like Timmy make a 2.8b dollar mistake, boy if they would have put that money to work helping home owner's it's sure would have done allot better. I think it is time for some of the good old boy's to in-roll in so good old fashion credit counseling.

[BadBobMo]

Let Me Try Again this is "Important"
So it look's like Timmy make a 2.8b dollar mistake, boy if they would have put that money to work helping home owner's it's sure would have done allot better. I think it is time for some of the good old boy's to in-roll in so good old fashion credit counseling.