Michael J. Golde

CIT Execs Should Resign

You pose a good question. Unfortunately, it appears that the BOD of these companies have been asleep at the switch.

If the current mess isn't enough to get someone fired or held accountable than nothing ever will be.


On Jul 22 12:19 PM John Preston wrote:

> Is there any top tier management, at any financial firm, who should
> still be employed..or even employable????????

CIT Prepares to File for Bankruptcy

If the U.S. bails out CIT, we are done with "true" capitalism in this country. A bankruptcy by CIT would cause hardship to many businesses, but there is nothing systemic about it. Loan companies like CIT has filed bankruptcies in the past and we survived.

Yes, many businesses we'll be scrambling for a new lender, but that is not a taxpayer problems. Those companies should have known for months if not longer that CIT was not going to be a reliable source of credit in the future. As a result, they should have either been looking for another lender or cutting back on borrowing as much as possible.

People need to understand the capitalism offers risks and rewards. We cannot backstop every lender out there. I am not sure what happens when the FDIC step into a bank and there is an outstanding borrower. I presume that if another institution takes over the collapsed bank, they do not guarantee credit availability to exist borrowers for an indefinite period of time. Why should this case be any different?