Geithner "Burned Billions," Shafted Taxpayers on CIT Loan, Prof. Bill Black Says

Another one of the nation's largest lenders has filed for bankruptcy. On the brink for months, CIT filed for Chapter 11 protection on Sunday.

The prepackaged plan allows CIT to restructure its debt while trying to keep badly needed loans flowing to thousands of mid-sized and small businesses. The plan keeps CIT's operations alive and makes it possible for the company to exit bankruptcy by year's end.

But here's the bad news: While senior debt holders will only lose 30% of their investment, we, the U.S. taxpayer, will lose the entire $2.3 billion we lent the company this summer...

Yahoo! Finance: Geithner "Burned Billions," Shafted Taxpayers on CIT Loan, Prof. Bill Black Says