CIT’s strong hand
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CIT, the small-business financing company that provides funding for airlines, railways, retailers and manufacturers, should have little trouble securing some kind of government aid, whether in the form of a short-term loan, as seems to be the most likely scenario, or even a TARP or FDIC bailout.
Public antipathy toward bailing out financial companies was pretty much exhausted months ago. Plus, with banks still skittish about lending, CIT serves a clientele that has both ready demand and strong support in conservative corners of Washington that have long touted small business as their base.
The more hearty free marketers say CIT clients will be able to find funds elsewhere if the company does go under. But in the current environment, might a government agency be just as likely to fill that role as the banking sector?
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If you go to the jobs website “www.indeed.com” and use the advanced query feature for “CIT Group” you will see about 170 jobs listed (the link below should get you the first 50). Many of the positions require a high level of financial sophistication and experience. If CIT’s management has been so good then why only NOW is CIT looking to hire such people? If they had been in place a couple of years ago CIT might not be in such dire financial straits!
Management incompetence and stupidity, raised almost to the power of infinity. And you want to reward them. Let CIT enter bankruptcy and emerge under new and hopefully better management!
http://www.indeed.com/jobs?as_and=&as_ph r=CIT+Group&as_any=&as_not=&as_ttl=&as_c mp=&jt=all&st=&salary=&radius=25&fromage =any&limit=50&sort=
CIT probably has enough liquidity to weather this crisis, but needs to get an even hand to push ahead with strength. This shot in the arm will put CIT back on solid ground so they can hit it running. Clever and necessary tactic to succeed, not just survive.
Enough of throwing money at failures. If bankruptcy worked with GM it will work with CIT. Pressure its already bailed-out cronies to pick up the pieces in a structure bankruptcy. They owe us more than that.