Now raising intellectual capital
Though, I’m not sure if it would have been better for the talks between CIT and the government to break down last week either. The pairing of almost certain bankruptcy of the little guy lender with the blow-out earnings of Wall Street giants, JP Morgan and Goldman Sachs, makes a strong argument for smaller financial institutions to beef up their operations so they, too, can be too big to fail.
I hope Geithner and Bernanke are preparing their defense for the populist backlash.
Given CIT’s long battle to stay afloat, bankruptcy can’t be far away. Reuters, citing CNBC, says that the lender is preparing for a filing Friday.
Though CIT provides loans to small and medium-sized businesses, it’s still a big lender itself. From Reuters: