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CIT Group trading halted; stock of GM reduced to rubble-52% drop

Trading halted in CIT shares
Trading halted in CIT shares, government bailout talks for struggling lender continue

* By Daniel Wagner, AP Business Writer
* On Wednesday July 15, 2009, 4:24 pm EDT

WASHINGTON (AP) -- Trading in the shares of crippled commercial lender CIT Group Inc. was halted on the New York Stock Exchange late Wednesday afternoon.

A trading halt often occurs when news about a company is about to be released.

Regulators have been poring over the books at New York-based CIT trying to determine which of its assets remain strong enough to secure emergency financing.

The company has been teetering on the brink of a bankruptcy filing as its assets decline in value and a large debt payment looms.

Industry and government officials say representatives from the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. have been meeting to discuss plans for a possible rescue of CIT.

http://finance.yahoo.com/news/Trading-halted-in-CIT-apf-4284...

Old GM shares drop in value with symbol change

By TOM KRISHER and DAN STRUMPF, AP Auto Writers

Wednesday, July 15, 2009

(07-15) 09:17 PDT DETROIT (AP) --

Shares of the old General Motors Corp. lost half their value Wednesday after the stock symbol was changed to reflect the company's new name, Motors Liquidation Co.

Trading of GM stock under the symbol GMGMQ had been suspended since Friday afternoon by the Financial Industry Regulatory Authority, which regulates over-the-counter stocks. On Wednesday, the authority changed the symbol and allowed trading to resume.

Motors Liquidation shares fell 57 cents, or 50 percent, to 57 cents in midday trading.

http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/07/15/...




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bump

this is just the beginning...

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what exactly does this mean?

what exactly does this mean?

It means those who own any

It means those who own any CIT stock are kicking themselves for not selling sooner.

Depending on how bad the news is the stock could resume trading at a lower price.

I've been saying this for a while now and it's my personal opinion...The stock market is like Las Vegas gambling. It's for suckers. It is so controlled and manipulated by the powers that be that they are the only ones who are making money...your money.

Edit your title

CIT Group (ticker CIT) is a different company than Citigroup (ticker C).

"Your title should read CIT Group trading halted..."

It is a smaller financial firm.

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SteveMT's picture

They are a lot smaller, but potential exposure is still.....

significant.

"The lender (CIT Group) has $7.4 billion in debt coming due in the first quarter of 2010, plus other obligations. The recent downgrades of its credit ratings will make it harder to refinance that debt in coming months, raising fears that it could default. CIT said Saturday it retained the law firm Skadden Arps, a bankruptcy specialist, as an adviser."

http://finance.yahoo.com/news/Fed-bailout-of-CIT-possible-ap...

LoL I was going to say...

I thought Citi had already been declared too big to fail.

SteveMT's picture

Thanks Kemp

My mistake.