United States largest and medium-sized enterprises, credit institutions CIT bankruptcy protection

Xinhua NET New York November 1 Apr because of government aid and debt restructurings failed, with 101-year history of the United States largest and medium-sized commercial lending institutions CIT Group 1, formally applied for bankruptcy protection.

CIT bankruptcy is a United States business history's largest corporate bankruptcy case. Company bankruptcy, its assets total $ 710 million, the total debt reaches $ 649.

The company issued a statement saying that the agreement at the company's creditors, the CIT Group New York southern bankruptcy court files for bankruptcy protection, its affiliated companies, including in Utah's CIT Bank will continue its normal operations.

CIT Chairman and CEO Jeffrey · pecq said in a statement, filed for bankruptcy protection will enable the company to survive after the reorganization, as small and medium-sized and middle market customers with loan capital and services.

CIT Group mainly through the issuance of bonds and commercial paper to obtain funds, but by mid-2007 credit market conditions continued to deteriorate, the company's financing sources are drying up. As of the end of March this year, the company's liabilities up to $ 68 billion, of which 27 billion debt will expire at the end of this year, next year there will be a quarterly 74 billion debt expired.

To ease the financial pressure, CIT has applied to join the temporary liquidity guarantee program, but have not been approved by United States Federal Deposit Insurance Corporation. United States Federal Deposit Insurance Corporation, CIT Group credit situation is deteriorating, to continue to issue corporate bonds to provide security, will make the taxpayer money at risk.

CIT Group was restructured into the Bank by the end of last year, from the Federal Government bad asset relief programme for injection of 23 million. Subsequently, the company lost the three investment grade rating, debt rating was lowered to "spam-level". Over the past eight quarters, total loss of the company has more than 30 billion dollars. In the first quarter of this year, the company losses exceeding $ 500 million, facing heavy financial pressure.

Since the company went bankrupt, CIT's shareholders will be struck out, the United States Government to rescue the enterprise investment billion or total loss.

United States financial supervision authorities of 30 October announced to close California National Bank 9 banks, since the financial crisis since the outbreak of the largest bank failure in a single record. At this point, the United States this year 115 bank failures.

Reuters review said that one day 9 bank failures, the show comes from the subprime mortgage crisis of non-performing loan problems continue to undermine the United States banking entities.

1 November, with 101-year history of the world's leading commercial financial institutions in the United States mainly small and medium-sized enterprises, business credit agencies CIT Group due to serious financial problems for bankruptcy protection. This is the 16 July, pedestrians from New York Manhattan United States at the CIT Group. Xinhua's macro photography