CIT ends discussions with the government

Another Bank Failure?

CTI announced yesterday that it has ended negotiations with the Obama administration as it has been told that the U.S. will no longer extend monetary support to bail them out of an impending bankruptcy, despite the reliance of thousands of retailers upon the company.

CTI has been a provider of funding to small and medium businesses for over 100 years. Its current financial woes apparently stem from “venturing into risky corporate and consumer lending and heavy reliance on fickle investors for funds.”

The bank, unlikely to be sold at this point will be the largest bank to fail since Lehman Brothers.

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