CIT: Not Yet

Oh, that's good: CIT has apparently escaped its near-death experience with a big chunk of new money (and the government wins this particular poker game).

Oh, that's bad: but as Felix Salmon points out, it comes with a humongous interest rate and a security interest in everything except the CFO's underwear. A bit like the deal Carlos Slim made for with the New York Times.

Oh, that's good: But it does mean there'll be somebody roped in with an incentive to pick up the pieces, once the problem resurefaces.

Afterthought: Everyone is saying that if CIT goes under, all these gazillions borrowers will be wiped out. But why woult that be? CIT's loan book is an asset, not so? The buyer would want to preserve the value of the assets, not so? And this would include continuing to collect and enforce these obligations, not so? So, what's the problem?