Skip to comments.CIT collapse would be a mess, turnaround pros say
Posted on 09/30/2009 7:40:48 PM PDT by Kartographer
If struggling U.S. commercial lender CIT Group Inc were to collapse it would be a "drastic mistake" as the small businesses that rely on it would have few alternate sources of funding, turnaround experts said at the Reuters Restructuring Summit this week.
"I have a great fear of the collapse of CIT and that people don't understand the ramifications of what that can be," Lynn Tilton, chief executive of distressed investment firm Patriarch Partners said, adding she believed any collapse would result in millions of job losses at smaller U.S. companies.
"I think it would be a very, very drastic mistake in this country to allow CIT to go under," Tilton said.
(Excerpt) Read more at reuters.com ...
Dunkin Donuts franchisees lost their CIT lines of credit.
Of the few bottom feeders who have moved in to fill the void, the *best* terms I’ve heard of are 3% PER MONTH, 2% interest with 1% fees.
CIT did the lines of credit for lots of the franchisee chains in the northeast, will be interesting to see how this plays out.
let them fail
There’s no money to bail them out. FDIC is broke.
LET THEM FAIL !
Let business run on solid cash if they don’t have the resources to borrow. CIT if failing because they made poor quality loans just like all the other fraudsters. The taxpayer is tired, and bailing these people out does much more harm in the long run.
I don’t buy the “too big to fail” argument. It sounds very familiar to the big government argument for everything else.
“If struggling U.S. commercial lender CIT Group Inc were to collapse ....”
Remove CIT Group and insert government program X being repealed
“...it would be a “drastic mistake” as...”
[Insert dependency group here]
“... that rely on it would have few alternate sources of funding, turnaround experts said at the Reuters Restructuring Summit this week.”
There is always something else somewhere else. Change creates uncertainty and it is human nature to resist it, but it also creates opportunities. By refusing to allow the financial power structures to go through needed creative destruction and be replaced by the free market with a more homogenized and diverse structure, we are doomed to a repeat of its failure that was brought about by government interference in financial markets in the first place. More government interefence can only mean more epic failure down the road.
I kept blowing one of my fuses down in the basement. I put a penny in behind it. It was too big to fail.
Let it fail!
Quit trying to outguess and one up Mr. Market. It is a losers game.
Let it fail!
the shares fell 50% not 40 and cramer on that stupid show was just proven how stupid he is he recommended cit to buy along with citi last night at 5 pm people woke up with half there investment gone in less than 12 hrs. no wonder cnbc is for sale lets hope they throw that lose off the tv
cit is commercial lender fdic is not involved
Thanks - my bad. I was thinking CITI Bank was connected.