CIT loss won’t be last for taxpayers

Full Story at money.cnn.con

NEW YORK (Fortune) — CIT Group is the first big bailout loss for taxpayers, but it won’t be the last.

CIT (CIT, Fortune 500) filed for Chapter 11 bankruptcy protection Sunday. The New York-based small business lender said all its common and preferred shares will be canceled, which will wipe out the $2.3 billion Troubled Asset Relief Program investment the Treasury Department made last December.

Though the government is also highly unlikely to recoup all the money it plowed into AIG, Citigroup, Fannie Mae and General Motors, CIT is the first bailout to go to zero — in just 11 months, no less.

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