Cit

[wimpy77]

toro or paulie what's your thoughts on CIT? the fdic doesn't want to give them any backstop and i dont think they are gonna get bailed out. this companies supplies credit to alot small business and retailers. i just want to know what your opinion was if they if they went belly up.

 

[Paulie]

I'm 100% against government bailouts for failed businesses, so my opinion on this if they go belly up is OH WELL.

I'm sick of my tax dollars being wasted on that crap. The world will still spin if CIT goes out of business. They're not the only ones who do what they do.

 

[wimpy77]

ty mr. paulie. there doesn't seem to be alot of systemic risk if they go belly up.

 

[Toro]

I would prefer to see it go under, and I think that is what the administration will do. Hopefully, they can wind up it quickly and sell the lending business to someone stronger.

 

[wimpy77]

i read on bloomberg where the ceo was basically saying that if the were allowed to fail then all the retailers and small businesses would go out of business. kinda trying to save their asses i thought.

 

[rdking647]

i think when cit dies there is enough credit out there so it will have no major effect on business's.

 

[Toro]

i read on bloomberg where the ceo was basically saying that if the were allowed to fail then all the retailers and small businesses would go out of business. kinda trying to save their asses i thought.

It would be in his own self-interest to say that.

 

[wimpy77]

i read on bloomberg that they could be trying to arrange a prepackaged bankruptcy.

 

[Paulie]

i read on bloomberg that they could be trying to arrange a prepackaged bankruptcy.

When your business is that far in the hole, I'm not sure there's really any other option that even makes any sense.

 

[wimpy77]

its official the government has said no more bailouts for cit. apparently they were a mess before crisis began, so imo if they were that poorly run of a company then they should go bankrupt. my worry how this will affect the businesses they represent.