This weekend only, get a Marketplace zip–up hoodie when you donate $8/month. Don’t wait — this offer ends at midnight Sunday!
Bill Radke: One of America’s biggest lenders, CIT Group, emerged from bankruptcy this week. Marketplace’s Amy Scott tells us what might be next.
Amy Scott: It took CIT Group less than six weeks to wash its hands of bankruptcy.
Analyst Brian Charles with RW Pressprich says CIT’s bondholders could have pushed the company into liquidation. He says the fact that they didn’t is a sign the financial system is stabilizing.
Brian Charles: The smoothness with which this company was able to accomplish this, I think it kind of speaks well to, of the market and its increasing willingness, you know, to fund companies going forward.
So has CIT got a clean bill of health?
James Rybakoff: No.
James Rybakoff is CEO of investment banking firm Akin Bay. He says for one thing, many of the company’s clients are in the retail and clothing business. They’re in the middle of their make-or-break season.
Rybakoff: And until January, February comes around and see how they did, you won’t really know how CIT looks.
CIT’s survival is good news for small and medium-sized businesses. They’re struggling to get credit these days. But Rybakoff says the company will likely have to cut back on its lending as it recovers.
In New York, I’m Amy Scott for Marketplace.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.