RILA urges federal help for embattled lender
The Retail Industry Leaders Association on Thursday urged federal action to protect the commercial and consumer finance company CIT Group from collapse.
One of the country's largest lenders to small- and medium-sized businesses, CIT Group is weighing a decision on whether to file for Chapter 11 bankruptcy after the federal government decided not to step in provide it with financial aid.
According to an Associated Press report Thursday, CIT Group is seeking $2 billion to $4 billion in rescue financing from its debt holders in order to ward off bankruptcy.
In a letter to U.S. Treasury Secretary Timothy Geithner, RILA President Sandy Kennedy asked federal officials to 'reconsider action to ensure that this situation does not create further pressures on the current credit market.'
The association said CIT Group is an important resource for retail businesses struggling to meet their financing needs in the current credit environment.
'Any additional tightening of the credit markets will only exacerbate the constraints on our members' ability to provide the products that consumers seek and most importantly, to maintain millions of retail jobs across the nation,' said Kennedy.
RILA urges federal help for embattled lender
