The buck starts here
23 October 2017 13:36 (South Africa)

For bankruptcy poster child, CIT, keeping customers is priority

CIT Group is keeping its fingers crossed that it can keep its many customers now that it has entered bankruptcy reorganisation. CIT’s journey through reorganisation may be faster than most because it reached agreements with creditors on restructuring debt. But the clincher will be if its customers keep their business with CIT or go elsewhere. In the same way that a commercial bank fails if all its depositors try to withdraw their money at the same time, CIT wouldn’t survive if too many of its customers closed their accounts. Some have already done so, but it is still too early to know how many will stick with the beleaguered lender. CIT is one of the nation's biggest lenders to small and mid-sized businesses, but analysts say it's still anyone's guess whether CIT can pull it off its balancing act. Read more: AP

Get overnight news and latest Daily Maverick articles






Do Not Miss