It should be against the law for a company (in bankruptcy) to continue to “trade”, if they are not willing to compensate the shareholders once the company “Exits Bankruptcy”.

(Sorry, I’m venting) I have lost money (just in time for the holiday season. And I feel really bad for other people that invested in CIT GROUP (under CITGQ) believing in the company’s redemption, and this is what they get a simple “sorry you invested your money in our company, but on the bright side you can invest under our NEW symbol CIT, which is really the Old Symbol CIT also known as CITGQ, but we’re not going to honor the Old symbol CITGQ, but we’re going to honor the Old/New Symbol CIT…. And I know it’s not about the symbols, but you know what I mean.

And what about the people like me that believed that CIT Group would work their way through the storm, and not screw the shareholders. I believed that if I invested in CIT Group I could make money, to get myself out of my own financial crisis.

Furthermore, I go on different website and read all the financial Blogs, about how people should have known that the (CITGQ) stock was going to be worthless, and how all the information was out there.

Financial analyst fell to understand that “The average person that invest in stocks are not stock wizards, and most times when the “average person”, invest in most people don’t have broker, nor does extensive research, on a company.

Moving on, as far as CIT Group is concern it is a company that had $71 billion in assets, in bankruptcy, who would have ever thought that judge Allen Gropper would have approve a plan that would prevent CIT Group from honoring Common/Preferred Shareholders stocks, and whomever else that got swindled, knowing that CIT Group was still trading shares while in bankruptcy.

What can people do to recover from the CIT Group lost? Are there any company/persons filing an appeal to overturn judge Allen’s ruling? Is there anything the average person can do to recover besides fill out an IRS (loss) form? Are there any petitions out there?

While shareholders are the last to receive anything in the event of a liquidation, no such liquidation has occurred. As such shareholders should be entitled or have a right to the new issuance of the re-organized CIT.

Pissed, I certainly underdtand your feelings when you write:
"It should be against the law for a company (in bankruptcy) to continue to “trade”, if they are not willing to compensate the shareholders once the company “Exits Bankruptcy”."

As you've learned by now, in a bankruptcy the shareholders are always wiped out. Owners of equity have the greatest exposure to good fortune and bad. Bondholders can only receive an income with no exposure to gain in a company's fortunes and they have the risk of loss of income and loss of capital. In a reorganization, the bondholders may get pennies on the dollar, a lower income or be forced to be equity owners.

I guess a company trades in bankruptcy as a way for shareholders to get out; to realize their loss.

Here's an interesting puzzle: Suppose the U.S. goes bankrupt. Will we as taxpayers be treated like equity owners and wiped out? Will the Treasury bondholders be given equity in our country?