Monday, November 2, 2009
CIT, the 101 year-old company which lends largely to small businesses, filed for bankruptcy today. In spite of the bailout of $2.3 billion from the federal government, CIT became insolvent. It looks like our billions would have been better spent in small banks and credit unions. Perhaps this would have better jumpstart and sustain the economy. I wonder with this bankruptcy how much of the billions went toward bonuses and what will happen to the infusion of government capital. Did the government secure our $2.3 billion investment?