David Copperfield would be proud

$2.3 billion USD sunk into failing CIT by the government (as an unsecured claim, of course) goes *poof* after CIT files for bankruptcy and the US tax payer is left holding the bag. Thank goodness the very same people responsible for this debacle aren't in charge of constructing something truly complex like, say, universal healthcare.

Originally posted by Fleabitten
$2.3 billion USD sunk into failing CIT by the government (as an unsecured claim, of course) goes *poof* after CIT files for bankruptcy and the US tax payer is left holding the bag. Thank goodness the very same people responsible for this debacle aren't in charge of constructing something truly complex like, say, universal healthcare.

What are you talking about?

Originally posted by AThousandYoung
What are you talking about?

He's talking about the TARP (Troubled Asset Relief Program). CIT was converted into a bank holding company (like Goldman Sachs and JP Morgan) so that it could get the funds. Now it is bankrupt so the money sunk into it is lost.

Of course, the government knew this kind of thing would happen in some cases (their not called troubled assets for nothing). The main goal wasn't to make money off the deal. If that were a likely scenario, then the government would have had to step in to make the purchases.