CIT bankruptcy could spell rough holiday for retailers
November 02, 2009 02:11PM
Not that there is ever a good time for a major commercial lender to file for bankruptcy per se, but the timing of CIT Group’s announcement is particularly bad because of the high-pressed holiday shopping season, according to ABC News. The firm, which provides financing for small- and medium-sized businesses and real estate, has not only lost the $2.33 billion of taxpayer money it received under the Troubled Asset Relief Funds program, it’s also left some of its clients in a tough spot for the winter retail season. Some 300,000 U.S. stores relied on the firm for loans to keep shelves full. Coming on the heels of CIT’s filing will likely be a “volatile” week on Wall Street, as employment figures are expected to come in on Friday.