Taxpayers Out $2.33 Billion Because Of Citigroup TARP Investment
The Treasury made the investment in CIT in December 2008, but CIT later ran into trouble after the Federal Deposit Insurance Corp. refused to guarantee its debt, as the FDIC did for larger lenders, including General Electric (GE) and large banks like Citigroup (C), Bank of America (BAC) and Wells Fargo (WFC). CIT filed for bankruptcy protection on Nov. 1, reorganizing and returning to a public listing on Dec. 10.
CIT Group is the largest loss on record under the TARP, though American International Group (AIG), General Motors, GMAC, Fannie Mae (FNM), Freddie Mac (FRE), Chrysler and Citigroup each owe the Treasury at least $10 billion each, according to ProPublica.Click here for reuse options!
Copyright 2010 Liberaland