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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The investors of the big apple have braked their purchases in Wall Street after the analyst Meredith Whitney downgraded this morning the recommendation to Goldman Sachs. The news generated some fear of bankrupt in the yard

Today, the Dow Jones decreased by 0,16% to 9870 points, while the selective Standard & Poor’s 500 felt by 0′18% to 174,54 points.

The financial system has been shacked today in Wall Street by Goldman Sachs after Meredith Whitney downgraded the recommendation from ‘buy’ to’ keep’, this new affected the investors, that far from fearing a bankrupt, they have a lot of good expectations with Goldman Sachs. The Shares of Goldman Sachs plumbed a 2% bringing with them the major part of the economies in this industry.

The deception generated in the yard of Wall Street by Whitney’s recommendation, shadowed the release of the Johnson & Johnson’s results, that could beat the expectations in the market and improved the prediction of profits for the rest of the year. Their shares lost more in Wall Street than the ones of Goldman Sachs, felt by a 2′5%.

Out of the scene,In Wall Street, there is also the new acquisition made by Cisco, that will pay $2.900 million for Starent Networks, what supposes a prime of 21%. This is the second purchase made by the american giant in just 12 days.

Worse than Goldman Sachs are the news from City Group, that is very close of the bankrupt and furthermore has announced the resign of his president, Jeffrey Peek, that will abandon the company the next December 31st . The decision isn’t more than other try to prevent bankrupt as many others the company has achieved to scape from extinction. Their shares felt in Wall Street by 14%

The banking system is the protagonist of Wall Street, and not just by Goldman Sachs and City Group, also Sheila Bair the president of FDIC, the federal deposit insurance corporation, admitted in an interview that the bankrupt of banks will keep strong in EEUU until 2011 and 2010 will be a relatively difficult year.

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