CIT, U.S. Treasury: Collateral Damage

Linus Wilson, a professor at the University of Louisiana's business school, has been a vocal critic of the TARP's Capital Purchase Program, and has taken issue with some of the Treasury's calculations relating to companies that have repaid it, like Goldman Sachs (GS Quote), American Express (AXP Quote), Morgan Stanley (MS Quote) and US Bancorp (USB Quote).

Wilson further argues the Treasury originally overpaid for its stake in CIT. Considering the likely outcome, whether or not the government got the best deal possible on the front end is fast becoming a moot point.

CIT's offer to bondholders expires Oct. 29, a minute before midnight.

-- Written by Dan Freed in New York.