Friday, October 23, 2009

Goldman changes terms on CIT loan

Goldman had lent CIT $3 billion in a severly over-collaterized loan, and would get a billion dollar payment if CIT filed for bankruptcy.

The loan for CIT is now $2 billion, and now CIT's payment to Goldman if it goes into bankruptcy is cut to $300 million.

Does anybody really think that Goldman would of caved to CIT in their "fully hedged" position, if they weren't getting bombarded in the press?

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