CIT, the lender to thousands of small and midsize businesses across the country, filed for a pre-packaged bankruptcy over the weekend, at a loss for the US government which previously bailed the company out, but at a gain for Goldman Sachs, yet another instance of the financial giant profiting off of failure.

The Financial Times detailed last month how Goldman stands to gain $1 billion dollars from the CIT bankruptcy:

The payment stems from the structure of a $3bn rescue finance package that Goldman extended to CIT on June 6 2008, about five months before the Treasury bought $2.3bn in CIT preferred shares to prop it up at the height of the crisis…

While Goldman is entitled to demand the full amount, it is likely to agree to postpone payment on a part of that sum, these people added. A CIT filing last week said that it was in negotiations with Goldman “concerning an amendment to this facility”.

Those negotiations yielded a deal that would keep the credit line between CIT and Goldman open, but delivered $285 million to Goldman in termination fees for reducing the line of credit, and keep them in line for the full $1 billion.

Over the weekend, McClatchy kicked off a four-part series on Goldman Sachs by examining the firm’s effort to profit off of the housing crash by selling $40 billion in mortgage-backed securities right before the bubble popped. Today’s installment concerns Goldman’s new role foreclosing on homeowners and seizing homes. This indication that they are making billions from CIT’s bankruptcy while the US taxpayer loses what they pumped into the country will only further this impression of Goldman as, in Matt Taibbi’s colorful term, as a great vampire squid wrapped around the face of humanity.