The story of the CIT would not have a medium-and long-term impact on markets

Recently, some of the analysts could hear comments that the bankruptcy of the financial group CIT lead to similar consequences for many companies, small businesses, which it funded, because there are no institutions that could be replaced by CIT in this business. Accordingly, will the mass dismissals in this sector of American economy, leading to higher unemployment. The resumption of the problems in the labor market, in turn, becomes a powerful negative signal to the stock and commodity markets.

We would argue on this point. First, the thesis of the indispensability CIT doubt. The assets of the company is less than $ 76 billion, and at the same time, banks such as Goldman Sachs, JPMorgan (especially after the remarkable financial results of the last two quarters) and, possibly, many others have enough capital to ensure that a risk and intercept business lending small business from the CIT. Even more so after the recent publication of reports, some analysts criticized the GS and JPM for that good results were obtained through the operations in the financial and commodity markets, rather than through the traditional banking activities. But the criticism of experts from Western companies taken to respond (not an example of some of their colleagues from developing countries). Secondly, all is well remembered that in the first half of the same commentators talked about the prospects of bankruptcy of GM: say, the company employs many smezhnikov (car, etc.) and, as a result, they, too, went bankrupt, that lead to an unprecedented increase in unemployment. However, the fears did not materialize. The reason is clear: if the company close to bankruptcy it must be assumed the case with the sales it were, to put it mildly, not very good. Thus, serious problems for car dealers (and other smezhnikov GM) began long before the bankruptcy automakers. The same can be said about the case of the CIT: hardly the last time, she is very active in lending to small businesses, and thus to its customers the most terrible thing has happened. Therefore, medium-and long-term impact of stories from CIT to the markets we do not expect.

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