Zee4Money

What CIT's Troubles Really Mean

The wall street to main street connection is the key point. The government can't allow a sudden disruption of lending to small and mid sized business with the unemployment rate hovering at 10%. The economy and financial system are not able to absorb this blow without creating another set back. The request to move assets to the bank is not an unreasonable step to secure access to the fed discount window. With access to low interest money CIT has a chance of getting out of its hole due to the step learning curve and the associated higher earnings. The economy must stabilize for lending to become profitable.