The Treasury lost $2.3 billion on its TARP investment in CIT Group, as the securities it received in the bankruptcy proceeding are now officially worthless. The Treasury could have received money following the bankruptcy if CIT had made a startling recovery after emerging from bankruptcy. Instead, CIT is still making halting moves toward restarting its business.
There were no bank failures reported this week, after only one last week. Bank regulators and the FDIC have surely been slowed down by the two heavy snowstorms that have hit the Washington area and much of the East Coast in the past two weeks.
