Translation: Government only gives tax dollars to those corporations officials are personally invested in.
Related (second article down): Debt-Loving Americans
"Government denies lender 2d bailout; US draws line in sand with CIT" by Daniel Wagner, Associated Press | July 16, 2009
WASHINGTON - The Obama administration drew a line in the sand on financial bailouts yesterday, denying emergency aid to CIT Group Inc., a struggling commercial lender on the brink of bankruptcy.
After days of round-the-clock talks with regulators about a possible government bailout, CIT said late yesterday those negotiations had ceased. The company said its management and directors were “evaluating alternatives.’’
When asked about CIT, a Treasury Department spokeswoman said in an e-mailed statement that “even during periods of financial stress, we believe that there is a very high threshold for exceptional government assistance to individual companies.’’
With its assets deteriorating and dangerously little cash on hand, the news left CIT with few options outside of bankruptcy. A filing could have been made as early as last night, analysts said. CIT is one of the nation’s largest lenders to small and mid-size businesses. The company has warned that its failure could imperil about a million corporate borrowers, including retailers, restaurants, and airlines.
Government to them: (See gesture here)
The New York-based company was negotiating with officials from the Treasury, Federal Reserve, and Federal Deposit Insurance Corp. for much of the week. An agreement on aid appeared close at midday yesterday. But trading of CIT’s shares was halted yesterday afternoon.
The company had deteriorated so far that officials feared even a short-term loan from the Treasury might not save it, according industry and government officials who spoke on the condition of anonymity because they were not authorized to discuss the matter.
“I think it makes a bankruptcy filing a near certainty,’’ said longtime banking analyst Bert Ely.
CIT already received $2.3 billion from the $700 billion financial system bailout. A spokesman for the Fed declined to comment. A spokesman for the FDIC could not be reached for comment.
Of course, we need newspapers to hold their feet to the fire. Pffffft!
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