Better Hope those Treasury Dudes are Right

Bloomberg has some potential famous last words as CIT awaits its fate from its bondholders:

The U.S. spurning of CIT Group Inc.’s aid request suggests officials are betting they’ve fixed the financial system enough to withstand the bankruptcy of a mid-sized lender. “I hate to say this, but it was probably expendable,” said Dennis Santiago, chief executive officer of Institutional Risk Analytics, a Torrance, California, research firm that studies systemic risk. “It may have just missed the boat” on federal rescues, Santiago said. [Empahsis ours]

Doesn't mean people, ahem, and voters won't be pissed:

There will be “a lot of disruption and anger among voters, particularly among people who rely on firms such as CIT for funding,” said Sean Egan, head of Egan-Jones Ratings Co. in Haverford, Pennsylvania, which rates CIT below investment grade. “A major provider of capital in the middle market is likely to be out of business in the near future,” and investors will be concerned, at least in the “short run” about CIT, Egan said. [Emphasis ours]

See you on the other side.

Treasury Bets U.S. Financial System Can Weather CIT Collapse [Bloomberg] Sphere: Related Content

...And We're Back On

"The Supreme Court late Tuesday declined to extend a stay of the sale of Chrysler assets to Fiat, clearing the way for the deal to close as soon as Wednesday morning over the objections of three Indiana state funds and several consumer groups."

Out.

Supreme Court Lets Chrysler Sale Proceed [DealBook] Sphere: Related Content

Um, Yeah, We're Going to Take a Look at That

"The United States Supreme Court agreed Monday afternoon to delay the sale of most of Chrysler’s assets to Fiat pending further consideration of an appeal by three Indiana state funds, in a move that injects a new element of uncertainty over the carmaker’s bankruptcy case."

Somebody's already not cool with this.

Supreme Court Delays Sale of Chrysler to Fiat [New York Times] Sphere: Related Content

Scoping - 6.8.09

Banks May Be Allowed To Repay Some TARP Money - "This week, the government reveals which banks will be permitted to give money back." - Don't get your hopes up Citigroup. [NPR]

BDO International: “Manage and Control” Means Slam Dunk For BES - Re: The Auditors thinks BDO is toast. Unless of course, the jury buys the "wedding planner" defense. [Re: The Auditors]

N. Korea Convicts 2 U.S. Journalists - [Washington Post]

Supreme Court asked to delay Chrysler sale - Something about unions getting priority over bondholders. The Obama Administration will certainly put the kibosh on anyone trying to actually follow bankruptcy law. [Reuters] Sphere: Related Content