The Chapter 11 filing is one of the biggest in U.S. corporate history, following Lehman Brothers, Washington Mutual, WorldCom and General Motors. CIT’s bankruptcy filing shows $71 billion in finance and leasing assets against total debt of $64.9 billion.[Source]

The topic is so startling I opened the post with a quote. One of the largest bankrupsies in history just occured, and it wasn’t a bank that lends to corporations and government. CIT is a bank that lends to small and medium sized business, contributing to the growth of the backbone of the country. Without small to medium sized business this nation would be a fascist corporatocracy.

“CIT is the 600-pound gorilla in the industry,”[Source]

The US has bailed AIG and the entire American car industry, they let Lehman Brothers fall, and now CIT. There choices of who to bailout are quite questionable. While AIG may have had more assets, the fact that CIT lent to the backbone of America, and was allowed to fail lead to a question of rationality used in determining who should be bailed out. Ultimately the US chose to bailout corporate lenders, rather that small scale lenders.