CIT Puts On Its Poker Face

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We may finally have a game of corporate default poker in which everybody at the table knows the rules and what they can and can't do. Player 1, CIT Group, continues its campaign to be considered a systemically critical institution warning that its failure could create a crisis for 300,000 retailers. Player 2, the FDIC, has stated that the firm's TGLP application is resting comfortably in the 'NFW' pile. And Player 3, Turbo Tax spokesman Tim Geithner, commented on the CIT situation today saying he is "actually pretty confident in that context we have the authority and the ability to make sensible choices". Clearly this will end in tears for somebody but, for once, lovers of the blame game will know exactly where to point the finger. It's time for Barney Frank to step up to the microphone and issue the 'shuffle up and deal' command.
Update: In what has become the barometer for whether or not a situation warrants any real concern, Goldman recently issued a statement pointing out that it has "no material exposure" to CIT. You can now exhale.

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