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’A different take on CDOs and CIT
News that CIT’s potential bankruptcy could impact a number of synthetic CDOs — in Europe in particular — hit the wires earlier this week:
NEW YORK, July 14 (Reuters) – Standard & Poor’s said on Tuesday that 1,881 synthetic collateralized debt obligations are exposed to CIT Group (CIT.N:
CIT on the brink as rescue talks fail
Shares in CIT, the US small-business lender, fell 75 per cent on Thursday after the failure of government bail-out talks prompted fears of a bankruptcy filing. The company was scrambling on Thursday to obtain last-minute financing commitments from lenders that could help CIT persuade the Federal Deposit Insurance Corporation to allow it to transfer assets to its banking subsidiary.
CIT death plunge
CIT stock is trading again after being suspended over the course of what now appear to be failed government bailout talks.
Here’s how shares in the beleaguered corporate-lender have opened:
That’s a drop of some 70 per cent to 40 cents — a market cap slide which increasingly ups the odds of the lender failing to meet its minimum capital ratios and therefore the probability of bankruptcy.
CIT faces bankruptcy filing
The US mid-market lender CIT faced the prospect of a bankruptcy filing as hopes of a government-led rescue plan were dashed. “There is no appreciable likelihood of additional government support being provided over the near term,” CIT said in a statement late on Wednesday.
CIT’s CDS fallout
A default by CIT, the troubled US commercial lender, could trigger widespread losses for investors in the $600bn market for synthetic collateralised debt obligations. CIT is the second most widely referenced company in synthetic CDOs after Volkswagen,
CIT would be the fourth-largest bankruptcy in US history
The short-term financing crisis over at CIT is gaining momentum after Moody’s slashed the corporate lender by four levels to B3 from Ba2 on Monday.
By the way, if you’ve not heard of CIT, this is probably a good time to get acquainted with the company.
US in talks to rescue CIT
The crisis at CIT, one of the largest US middle-market lenders, worsened on Monday with the company talking to regulators about ways to stave off failure while its credit ratings were cut deeper into junk territory A failure at CIT could result in losses for Goldman Sachs and Wells Fargo,
Saudi fund eyes £700m UK real estate deal
An investment manager part-owned by the Saudi royal family is planning to invest a chunk of its assets in UK and US commercial property, according to Prince Faisal bin Salman bin Abdulaziz, its chairman.For Jadwa Investment,
Debt wait for GMAC and CIT
GMAC and CIT, two of the largest US finance companies, remain unable to issue government-backed debt almost three months after they became bank holding companies to gain access to the rescue schemes. Both
The strange case of Citi’s Nikko Cordial operations
Among many other murky developments on Monday came the contradictory stories about the fate of Citigroup’s Japanese retail brokerage operations, Nikko Cordial Securities, formed just a year ago after a long and costly negotiation with Nikko Securities.
GATX offers $3bn-plus for GE unit
GATX Corp , the US lease-financing company, is offering more than $3bn for General Electric’s rail car leasing business, reports Reuters. GATX is the leading bidder for the unit and negotiations are ongoing,
CIT secures $3bn financing from Goldman
Goldman Sachs has agreed to provide CIT Group with $3bn in financing, a move that could lead to a broader partnership. CIT, a commercial and consumer finance company whose businesses depends on its ability to win short-term financing,
Fannie, Freddie and the subprime issue
US subprime mortgages – and the role of the government-backed mortgage giants Fannie Mae and Freddie Mac – are back in focus again, with Congressional testimonies by top Fannie and Freddie officials due later Thursday,