CIT Falls Short Of Even Government Standards

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It turns out there is a limit to the list of well-run companies that government agencies are willing to bail out or prop up. CIT Group has been trying to convince SheBair and her underlings that they are worthy of FDIC backing for new bond issuance under the Temporary Liquidity Guarantee Program. However, so far CIT's application has fallen short of the lofty standards set by FDIC guarantee recipients such as GMAC and SheBair would prefer to worry about selling her house rather than CIT's deteriorating financial condition. The rating agencies have even done their part to unintentionally throw some salt in CIT's wounds. GMAC qualified for the FDIC's training wheels with C/CCC (Moody's/S&P) ratings, but Ba2/BB- rated CIT did not.
FDIC Said to Withhold CIT Debt Guarantees Due to Risk [Bloomberg]