Small Business: CIT needs a bailout and TOTUS is ready to oblige…

Another driver of GROWTH in our economy coming under control of the velvet fist (or whatever the hell some up and coming nubile historian coins it 80 years from now)….

CIT the second largest IIRC first, the largest per CNBC, lender to small and midcap businesses in the US is in danger of imminent bankruptcy.

Odd that a ginormous stimulus went through and this KEY DRIVER of the economy was left hangin’ or maybe not..

Deliberate or shortsighted, the effect is the same, CIT is coming to the Fed for aid and the FDIC is saying not our ball and Team TOTUS is the only one with a checkbook…

a new oversight panel and CZAR for the coordination of small business recovery is no doubt next on the list of TOTUS hooks into the economy…

The last time MiM followed late night negotiations on a bailout of this importance to the economy was AIG and CITI .. bodes nothing good, *having Martin Sheen type Apocolypse Now flashbacks just at the thought of it* ugh….

CNBC:

In a sign the financial crisis isn’t over, CIT Group, the No. 1 lender to small and mid-sized U.S. businesses, is scrambling to get help from the federal government.

“People are speculating that CIT is going to get government assistance,” David Chiaverini, analyst with BMO Capital Markets in New York, told Reuters. The Treasury Department and the Federal Reserve are exploring aid options for the lender, a source familiar with the matter said on Monday. A CIT spokesman did not respond to requests for comment

The government may have good reason to talk with CIT. Some analysts suspect a collapse of the company, whose 1 million clients include big names from the franchisee of Dunkin’ Donuts to retailer Dillard’s, could deal a devastating blow to the economy by cutting off financing just as businesses need it most.

The impact:

“If CIT were to go away, it would take a financing option away from our franchisees who want to buy stores or expand their networks,” said Michelle King, spokeswoman at Dunkin’ Brands, parent company of the Dunkin’ Donuts chain.

For the apparel industry, a collapse of CIT would have “near cataclysmic,” consequences for its small to mid-sized clients, said Andrew Jassin, co-founder of Jassin-O’Rourke Group an apparel consulting company.The retail and apparel industries, which also include CIT clients like Dillard’s and Bon-Ton Stores, is preparing for the critical back-to-school selling period and is in the midst of ordering merchandise for the holidays. “This could affect the lifeblood of the flow of goods to the stores,” said Vincent Arscott, senior director of Fitch Ratings.

Apparel industry insiders say it would be very difficult for rivals to absorb CIT’s clients because other lenders are already under financial strain, leaving many orphaned suppliers potentially without any access to financing.

There was some bailout money given by Dubyah, Team TOTUS has done nothing for small business but propose raising their taxes and give some chin wagging the last three days:

CIT, which got $2.3 billion in bailout cash in December, said it’s talking with regulators about receiving more government help. One possibility is including CIT in the Federal Deposit Insurance’s Temporary Liquidity Guarantee Program, the firm said.The program would let the New York-based financier, which converted into a bank holding company last year, issue government-backed bonds to raise capital at a lower cost. As of June 8, the program has backed $335.4 billion of debt.

Speaking in London, Treasury Secretary Timothy Geithner suggested help could be on the way but gave no specifics. “I am actually pretty confident in that context that we have the authority and the ability to make sensible choices,” Geithner said.

Timmeh is confident they have the authority, SHIVER ME TIMBERS! and the ability to make SENSIBLE choices, IM COMIN !!ELIZABETH! IM COMIN TO JOIN YA HONEY!!

Sanford and Son Montage and Music Created by MrMonkeyFingers

Rolling Stones courtesy of satanic5fab4

1/25 The Rolling Stones performing Under My Thumb in Tempe, Arizona, on the 13th December 1981 during their USA Tour ’81 from their “Let’s Spend The Night Together” film

July 14, 2009. Tags: , , , , , , , , , , , , . Comedy, Economy, Entertainment, FDIC, Finance, Music, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. 1 comment.

%d bloggers like this: