Happy 25 Cents a Share CIT Group

Got a quarter? You're in luck, you can buy one share of CIT Group (NYSE:CIT). CIT shares are down 63% since last Friday and doomed thanks to the company's filing for the 5th largest U.S. bankruptcy on Sunday.   Thank you U.S. Taxpayer, remember how we forked out $2.3 billion in TARP funds to buy CIT's common stock, those same shares that are valued at 25 Cents today? Well, kiss that money good-bye thanks to CIT's Chapter 11 filing, we aren't getting a penny back, that's right, welcome to..

GAME OVER CIT
The filing will effectively eliminate the value of CIT’s preferred and common stock. The U.S. government will likely lose the $2.3 billion it provided the bank in aid in return for common stock.

According to CIT’s press release, the company has filed a number of motions along with the bankruptcy action. These motions include requests to continue the payment of wages, salaries and other employee benefits.

The debt restructuring actions CIT took back in mid-October remain effective and were in place by October 28. They include; a $4.5 billion expansion to a senior secured debt facility that will allow the lender to meet daily operating obligations during the bankruptcy reorganization process, as well as a $1 billion committed line of credit from bondholder Carl Icahn.

In the filing, CIT listed financing and leasing assets totaling roughly $70 billion, while claiming total debt just shy of $65 billion.

Here's a video recap of the story from CBS: