CIT emerged out of bankruptcy yesterday. There is no balance sheet yet out there. Heck, people don't even know what the share count is - for that you need to read the bankruptcy filing 8-K.
Total share count = 200 mn
Share Price = $28
WSJ is saying that $11bn of debt has been wiped out. That is on top of $5bn of pref and equity interests that have been wiped out. So in total $16bn has been wiped out - on a book of $64bn.
The books have to be restated at fair value. Even if there is a 15% write off of the book, so that $10bn of loans are written down, there should be tangible book value left. And after that, because there wont be any more provisions to take, CIT will report eye-popping earning numbers. This is like the Wells Fargo - Wachovia situation from a year ago.