CIT gets “Don Corleone financing”

"I tell you, the bankers are moving in on our territory. Maybe we should just merge with them."
"I tell you, the bankers are moving in on our territory. Maybe we should just merge with them."

CIT, a 101 year old commercial lender is on the ropes, facing bankruptcy. So a consortium of vultures has offered to bail them out. But the terms are so onerous that others in the financial world are calling it “Don Corleone financing

Outside of the “urban underworld,” Egan, 52, said he couldn’t recall seeing a loan backed by as much collateral that paid interest rates so high. “These terms would make a pawn- shop operator blush.”

Do we really want a financial system that is utterly predatory, devoid of ethics, and unable to focus past how can this deal can make money for me and screw everything else? Because that sure seems like what we have now.

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