Not too long ago, it was broadly assumed that mid-level lender CIT Group would go bankrupt. With its executives having staked the firm’s survival on receipt of a federal loan, the FDIC’s refusal to agree on a rescue package apparently spelled its doom.
But as often happens when individuals stare demise in the face, creativity is the result. In CIT’s ( CIT – news – people ) case, its creditors didn’t want to risk the vagaries of bankruptcy court, while its executives probably saw a greater likelihood of unemployment if they left the firm’s fate in the hands of a judge.
Tamny: The Bank That Bailed Itself Out
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