CIT Group Bankruptcy Could Net Goldman Sachs $1 Billion in Payments
Posted on | October 5, 2009 | No Comments
If the CIT Group files bankruptcy it would net Goldman Sachs $1 billion in payments. The Financial Times reported on Sunday that if the troubled CIT Group files Chapter 11 bankruptcy Goldman Sachs would be due a payment of $1 billion. The reported stated that Goldman Sachs would be owed the money under a $3 billion house rescue package it gave to CIT in June of 2008.
According to Financial Times, CIT Group “would be required to pay a make-whole amount” that equals $1 billion. It is likely that Goldman is going to allow CIT to delay payment on some of the amount. Goldman Sachs would also receive payment from credit insurance it holds if CIT Group were to go bankrupt.
Overall, Goldman Sachs stands to gain a lot of money if CIT Group fails. With many former Goldman Sachs board members now on President Obama’s cabinet it makes you wonder why the government refused to bail out CIT Group. Assumptions can be made but if Goldman will stand to make over $1 billion any intelligent mind can put two and two together.
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Author: Jesse Wojdylo
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