Thursday, July 16, 2009

CIT Bankruptcy: A Main Street Perspective

Our fancy headline scouring software has directed us to the following article from Furniture Today, concerning the likely, if not inevitable impact a CIT failure will have on that industry and others. The publication's interview with Cass Johnson, President of the National Council of Textile Organizations yielded the following:
"In this terrible economic climate, our members tell us that the loss of factoring and loan instruments from CIT could put many textile companies and their suppliers out of business," said NCTO President Cass Johnson. He added, "Many manufacturers are running on survival mode right now — a major disruption in financing and factoring would be enough to put many of them under, particularly since there is no substitute for an institution which offers the size and breadth of services to small businesses that CIT does."

It will certainly be interesting to watch the Obama Administration try to blame this one on the economy that they "inherited".

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