Another Financial Tid-Bit

[aplusmnt]

What really burns me up is Citigroup took Billions of of our money last year in Bailout and then just a few months or maybe weeks ago they paid out dividends to their stock holders with our Bail out money and then they file bankruptcy weeks later................You pay dividends on profit, how can they pay them then file Bankruptcy. All they did was take our tax dollars pay it out to stock holders then file Bankruptcy. Someone should go to jail for that! Just flat out steeling!

You mean CIT not Citi.

Yea Cit Group not Citigroup, my bad!

[HerefordSire]

What really burns me up is Citigroup took Billions of of our money last year in Bailout and then just a few months or maybe weeks ago they paid out dividends to their stock holders with our Bail out money and then they file bankruptcy weeks later................You pay dividends on profit, how can they pay them then file Bankruptcy. All they did was take our tax dollars pay it out to stock holders then file Bankruptcy. Someone should go to jail for that! Just flat out steeling!

You mean CIT not Citi.

Yea Cit Group not Citigroup, my bad!

Got a link where they paid out dividends after they received the $2.3B from TARP?

[Brandonm22]

Jobs were suppose to stop at 8% when the stimulus package was passed. Most all spending going on now is simply government spending which skews the books.

How many of the new signs are up in your area stating that "this project is being paid for the stimilus and recovery act" (or something like that). I've seen a lot of them go up, and nothing else happen.

Did you know that these signs stimulate the economy by $1600.00 EACH by the time they are installed?

Well on the one hand they have just begun widening I-20 to six lanes through St Clair County creating jobs (yay!!) with stimulus money. On the other hand, because the evil goofs in Washington have been tied up arguing about health care they never passed a fiscal year 2009/2010 budget and instead we are working on a 30 day extension of the last budget. Without a guarantee of continued federal funds, Alabama has shut down several construction projects including the I-65/Corridor X junction. This has cost us jobs

[aplusmnt]

Got a link where they paid out dividends after they received the $2.3B from TARP?

Here is a link back in April were they talked about not paying dividends to common stock but would to preferred stock. Most recently I heard they paid both on the Happy Hour show. But it is hard to find more recent articles about exactly what was paid, I will look some more. This one is after 1q 2009 reports back in April.

But on a conference call, Peek said the company will continue to pay dividends on preferred stock. He added CIT is working on returning to profitability, which it now doesn't expect to reach until 2010.

http://www.marketwatch.com/story/cit-1q ... s-dividend

[HerefordSire]

I think that is proof enough. Were there any other TARP recipients distributing dividends to shareholders before the TARP funds were paid back?

[aplusmnt]

Here is another link to Cody Willard Blog

CIT paid its preferred shareholders more than $50MM STRAIGHT FROM THE PROCEEDS OF TARP before the company suspended its preferred share dividends six and nine months AFTER its bailout.

CIT paid its common shareholders more than $6MM STRAIGHT FROM THE PROCEEDS OF TARP before the company suspended its common stock dividends four months AFTER its bailout.

http://cody.blogs.foxbusiness.com/2009/ ... about-cit/

Here is a link to the actual Dividend payment records of Cit best I can see they paid out there last Dividends on Preferred Stock on 6-15-09. The last time they paid on common shares was 2-27-09. I believe both them are after receiving Tarp money.

http://phx.corporate-ir.net/phoenix.zht ... -dividends


It is outrageous that they take our Tax dollars then just turn around and pay it to their Preferred stock holders. That is flat out robbery, if they were making a profit and had money to pay dividends then they would not have needed a bail out!

http://phx.corporate-ir.net/phoenix.zht ... -dividends

[aplusmnt]

I think that is proof enough. Were there any other TARP recipients distributing dividends to shareholders before the TARP funds were paid back?

Not sure but my instincts would have me put money on yes!

[HerefordSire]

I think that is proof enough. Were there any other TARP recipients distributing dividends to shareholders before the TARP funds were paid back?

Not sure but my instincts would have me put money on yes!

I would say that is certainly grounds for a lawsuit, especially since they recently received funding and are still alive. The issue is, even if someone won a lawsuit, the attorneys will be the ones winning the most since with the least risk since their fees come out first (usually 1/3). The court system is in favor of the big guys and attorneys.

[HerefordSire]

This was before the bankruptcy...

[backhoeboogie]

Not something for an investor to invest in. Unrestricted bail out money goes for CEO bonus packages and nothing for the investors.

Investor confidence is on rock bottom.

Consumer confidence is just a threshold above investor confidence with people forced to buy food, gasoline, and every day life comodities. If not, things would be much worse.

Many are buying depressed raw land. They are buying for the 15 to 20 year haul. That takes out opportunities for stock investment if there is a rebound and if the market becomes sound again. Hence, these long term purchases are going to hurt something that is already hurting.

[Brandonm22]

This was before the bankruptcy...

Jim Cramer is living off his well earned reputation, but is either not actually working or whoever used to feed him info isn't working for him anymore. In ~March, he listed National Coal (they have a mine near us) as one of the top ten stocks to own. In June they defaulted on a $60 million note. In July their whole ALabama Division was foreclosed on! GREAT investment there!

[HerefordSire]

This was before the bankruptcy...

Jim Cramer is living off his well earned reputation, but is either not actually working or whoever used to feed him info isn't working for him anymore. In ~March, he listed National Coal (they have a mine near us) as one of the top ten stocks to own. In June they defaulted on a $60 million note. In July their whole ALabama Division was foreclosed on! GREAT investment there!

He is on CNBC every work week plus he runs a charitable trust.

[Brandonm22]

He is on CNBC every work week plus he runs a charitable trust.

I am aware of his tv job; but I am also aware that his "advice" of the past two years has been off the mark as often as not. Given his stellar past performance versus his recent performance something is missing.

[1982vett]

He is on CNBC every work week plus he runs a charitable trust.

I am aware of his tv job; but I am also aware that his "advice" of the past two years has been off the mark as often as not. Given his stellar past performance versus his recent performance something is missing.

Probably has a lot to do with needing to find a new stock to recommend to his viewers every day.

Incidentally, HS, the story you referenced was posted September 29th. The roulette wheel has been spun many times since then. Here is the balance of the story:

Because no one forced CIT into bankruptcy, it can live to play again, and when I read in the New York Post that Paulson owns CIT debt, I realized that he's powerful enough to save this company, particularly because he is one of the investors in IndyMac and knows his way around the bottom of the debt barrel.

These two stocks represent lottery tickets that are no longer rip-ups because they have made it out of the "critical care" stage and are recovering.

I would buy them both.

At the time of publication, Cramer had no positions in the stocks mentioned.



He has made some good picks and has picked some real duds. The trick is to gain more on the good picks than you lose on the bombs. Oh, and like passing thru some "small towns", you know, the ones you miss if you blink... Cramer can change his mind and recommendation just as fast.

[aplusmnt]

Not something for an investor to invest in. Unrestricted bail out money goes for CEO bonus packages and nothing for the investors.

Investor confidence is on rock bottom.

Consumer confidence is just a threshold above investor confidence with people forced to buy food, gasoline, and every day life comodities. If not, things would be much worse.

Many are buying depressed raw land. They are buying for the 15 to 20 year haul. That takes out opportunities for stock investment if there is a rebound and if the market becomes sound again. Hence, these long term purchases are going to hurt something that is already hurting.

And then when you see things like the Unions getting put ahead of the Bond holders during a bankruptcy like in GM case. Why would anyone have faith anymore in putting stock into companies! The whole system is upside down now!