CIT: Another Victim of the Financial Crisis?

The federal bailout has been a lifeline for many financial institutions. Many banks have received TARP money and some lenders have been swallowed up by commercial banks. CIT Group is one lender that is still struggling. Should it not receive any more help, CIT will have to file for bankruptcy.

CIT is one of the biggest lenders lending to 950,000 small and mid-size businesses. It is one of the largest credit and cash advance suppliers in the country. The government has established tax credits for small businesses to encourage entrepreneurship. If the government lets CIT file for bankruptcy, all these small businesses will get hurt. Saving CIT will help 950,000 businesses trying to stay afloat.

I wasn't in favor of the government helping businesses with our tax money. I thought that they should all pay the price for being greedy. Now I see that letting these businesses fail doesn't just hurt the business, it hurts us too. Letting CIT fail could lead to these small businesses failing. This would just lengthen the recession and jack unemployment up even further. CIT is in talks with Goldman Sach's and JP Morgan for short term financing. Hopefully, CIT will make it through. If not, many businesses could go under. At that point, cash money will be even scarcer than it is now. We should just do what we have been doing by giving some money to CIT and start regulating.