There is no telling how CIT Group's 4,995 employees will fare in the wake of the lender's liquidity crunch. But there is no doubt that small business owners across Middle America will be the biggest casualties if the bank fails.
The lender has so far been unable to get the FDIC to guarantee its debt of nearly $2.7 billion due from now until the year end, reported the Wall Street Journal.
CIT said that the crisis could affect 760 manufacturing clients, and create a dire financial situation for 300,000 small business owners. The Wall Street Journal said that about 700 companies have a total of $3.9 billion in undrawn revolvers that act like credit cards, allowing borrowers to run up debt. CIT is the sole lender to about two-thirds of these companies, so CIT's failure will leave many without buying power.
Keeping Cool When Things Get Hot at Citi
As top brass at Citi is shuffled around at the whims of the company's de facto commander-in-chief -- Uncle Sam -- the rank and file nervously wait to see how things shake out. Some are going AWOL while others have decided to hunker down. What should you do if you are an employee of the embattled company? (FINS)
Two Billion Reasons Goldman is Number One
Analysts predict that Goldman Sachs will be reporting a cool $2 billion in profits on Tuesday. Translation: A projected $18 billion in employee compensation this year, about $600,000 per employee. As usual, top producers will command the lion's share. (NYT)
Searching for a lifeline?
Mentors are not the only way to go to get you a leg-up in your career. Experts suggest forming "lifeline" groups of colleagues with whom you can be candid and receive helpful feedback. (WSJ) If you are looking for a mentor, WSJ reporter Toddi Gutner can tell you how to find one. (FINS)
CFO Seeking
Ex-Banta CFO Geoff Hibner has been looking for his next gig since Banta was sold to a larger competitor in 2007. In Hibner's case, patience is a virtue. (WSJ)