The Financial CIT under bankruptcy

The financial CIT, specialist in loans to students and small companies, declared bankruptcy this Sunday, this is the five th biggest bankruptcy in the history of the United States.

According The Wall Street Journal in the digital edition, the decision of the company of declare bankruptcy was adopted in an administration council celebrated yesterday. in New York.

With $ 71 billion of assets, CIT is the 5th major company to declare bankruptcy in the story of the united states, only surpassed by Lehman Brothers, Washington mutual, Worldcom and General Motors.

The bankruptcy of CIT, that was brought by the financial crisis due to it’s excessive exposure to student loans with high risk profile, supposes throw away $2,3bilion invested by the American Government to try to save the company.

Since the financial crisis began, the Government of the United States has invested near 400 billion dollars in the rescue of companies with problems like CIT from the bankrupt, including insurances and automobile producers.

In a movement directed to smooth the declaration of bankrupt, the company reached the past Friday reach a deal with the financial Carl Icahn, that promised to contribute with $1bn in to help CIT to leave the bankruptcy,

According The Wall Street Journal, financial CIT believes that will be able to reach a deal with the creditors and lift the bankruptcy before the end of the year.

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