During the next banking crisis, we will need speed. Remember how floundering financial firms, like Lehman Brothers, AIG, and Fannie Mae, contributed to fear and uncertainty - creating problems for their customers, counterparties, and the markets? Many commercial and investment banks panicked, stopped extending credit, and greatly damaged our economy and financial system.
A new player is charging into the arid landscape of banks willing to lend to franchise operators. Bancorp Bank, based in Wilmington, Del., said this week that it will launch a new program specifically targeting startup and expanding franchises.
Not so long ago, John Thain's legacy was that of the Merrill Lynch CEO who redecorated his office for $1.2 million before selling the dying investment firm to Bank of America in a controversial deal that is now under criminal investigation.
The last of the big banks have returned their bailout funds, but uncorking the champagne would be premature: taxpayers still have a lot of skin in the game, and getting paid back only gets more difficult from here on out.
After a 38-day trip through bankruptcy, small business lender CIT Group emerged on Thursday and says it's ready to charge back into the lending fray. Its next challenge: Rebuilding relationships with customers damaged by the bank's struggles.
CIT Group Inc., one of the nation's leading funders of small and medium-sized businesses, filed for the fifth largest bankruptcy by assets in U.S. history Sunday as part of a reorganization plan that has the support of an overwhelming majority of debtholders.
Shares of CIT Group, one of the nation's largest lenders to small businesses, plummeted 45% Wednesday after a newspaper article said the company will hand control to bondholders or file for bankruptcy.
Stocks slipped Tuesday after a surprise drop in consumer confidence countered a better-than-expected housing market report. That added to lingering questions about the strength of an economic recovery.
Is the financial system stable enough yet to fix itself? Can the government take off the training wheels? That's the significance of CIT Group's crisis, beyond its role as a lender to about 1 million small- and medium-size businesses.
Stocks were set for a mixed open Friday as investors remained cautious despite strong earnings from Citigroup, Bank of America and General Electric, and a government report on the housing market that trumped expectations.
The small business credit market is about to take another major hit. Six weeks after Advanta abruptly froze all of its 1 million credit-card accounts, lending giant CIT Group faces potential bankruptcy.
Investors around the world cheered as stock markets experienced a broad-based recovery Monday from last week's dismal performance. But as the S&P 500 saw its best-ever point day a small group of stocks were left out in the cold.
CIT Group's advertising slogan may sum up its problem: "At CIT, we are Capital Redefined." Thanks to its recent foray into subprime mortgages, CIT's capital has been radically redefined. On March 20 it was forced to draw down a $7.3 billion backup credit line. Its stock has plunged from around $60 a share a year ago to $13 on April 9, and CIT shuttered its student loan business and is trying to sell off non-core businesses to keep afloat.