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CIT is going to restructure its debt. Lenders are trying to get $825 for each $1000 worth of notes. There is a billion worth of senior notes alone. The company has established a steering committee of bondholders that will work on drawing up a number of debt swap offers designed to alleviate CIT's debt burden and further shore up the company's cash position. A question everyone should be asking is who are the people who are going to put the money up for this and what is their relationship with the Fed and U.S. Treasury.
Meanwhile a report is out that some of the biggest recipients of TARP bailout funds, including Bank of America and Morgan Stanley, increased their spending on lobbying in the second quarter as Congress began to look closely at revamping the rule system for financial institutions. Fortunately, members of congress aren't known to be for sale. Their votes are another story however.
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This posting is editorial opinion. Like all other postings for this blog, there is no intention to endorse the purchase or sale of any security.