I actually think they wanted CIT to fail. If they didn't want they would have done something similar to Citi, like getting preferred shares and converting them to keep bank afloat. I think it all comes to the quality of bank ties inside government.

Although it seems like a blow to tax payers, still 2.5 billion doesn't even come close to the money put into AIG and Citi in terms of quantity. I have doubts taxpayers will get much for their stakes in both companies anytime soon. Fanny and Freddie are even worse than that.