Financial Future

Largest SME bank in the United States, CIT Group finally register on Sunday for bankruptcy protection (1/11/2009). Bankruptcy bank that has received U.S. government bailout fund of U.S. $ 2.33 billion has now become one of the largest in the United States.

CIT was founded in 1908 and made history as one of the banks to the largest segment of SMEs in the U.S.. As the crisis, CIT Group did not escape the shock.

CIT hopes its status as a creditor SME sector could win political support after struggling early this year. But in July, the Federal Deposit Insurance Corp refuses to be a guarantor of debt issuance CIT. The Company also had to struggle to find their own funding.

A group of bondholders CIT eventually provide loans of U.S. $ 3 billion in July. The shareholders also agreed to exchange old bonds for U.S. $ 1 billion in new debt.

These measures do give time for the CIT to breathe, though still has not secured debt and maturing in November for U.S. $ 800 million. And more than U.S. $ 3 billion in unsecured debt maturing in late March.

Last week, CIT successfully secured additional funding of U.S. $ 4.5 billion from investors that will help them through the bankruptcy process. Icahn on Friday and have also agreed to provide credit facility of U.S. $ 1 billion.

CIT eventually enroll Chapter 11 protection in Manhattan court for expediting the process of restructuring its debts. Banks that have 101-year-old was reported total assets of U.S. $ 71 billion with liabilities of U.S. $ 65 billion, which was recorded as one of the largest bankruptcy record.

Here’s a list of 20 largest U.S. bankruptcy following its asset value since 1980, who quoted from the AFP, Monday (2/11/2009).

1. Lehman Brother (banks), 15 September 2008, U.S. $ 691 billion
2. Washington Mutual (the bank), 26 September 2008, U.S. $ 327.9 billion.
3. WorldCom (telecommunications), July 21, 2008, U.S. $ 103.9 billion.
4. General Motors (automotive), June 1, 2009, U.S. $ 91 billion.
5. CIT (bank loans), 1 November 2009, U.S. $ 71 billion.
6. Enron (energy trading), December 2, 2001, U.S. $ 65.5 billion.
7. Conseco (insurance), December 17, 2002, U.S. $ 61.4 billion.
8. Chrysler (automotive), April 30, 2009, U.S. $ 39.3 billion.
9. Pacific Gas and Elctric (utility), 6 April 2001, U.S. $ 36.1 billion
10. Texaco (oil), 21 April 1987, U.S. $ 34.9 billion.
11. Financial Corporation of America (the bank), 9 Seotember 1988, U.S. $ 33.8 billion.
12. Refco (trade), October 17, 2005, U.S. $ 33.3 billion.
13. IndyMac (bank), July 31, 2008, U.S. $ 32.7 billion.
14. Global Crossing (telecommunications), January 28, 2002, U.S. $ 30.1 billion.
15. The Bank of New England (bank), January 7, 1991, U.S. $ 29.7 billion.
16. Lyondell (chemistry), January 6, 2009, U.S. $ 27.4 billion.
17. Calpone (electric company), December 20, 2005, U.S. $ 27.2 billion.
18. New Century Financial Corporatuon (trade), 2 April 2007, U.S. $ 26.1 billion.
19. United Airlines (airline), December 9, 2002, U.S. $ 25.2 billion.
20. Colonial Bank (bank), August 14, 2009, U.S. $ 25 billion.

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