The "Wall Street Journal reports CIT reported Wednesday "that there is no appreciable likelihood" it will receive fresh government support in the near future." "Talks with the government were complicated by conflicting signals over who was leading them. Some say Treasury officials were in charge, others say the Federal Reserve headed the talks, while still others say that the main focus was on decisions at the FDIC."
Therefore, because of the bureaucracy involved between and among the Federal Reserve, Treasury, and FDIC, there were no clear lines of authority about who should decide about granting a bailout to CIT. So, by default nothing was done! I would consider that to be a moral victory by default. You have to love it, but, then again, this is a perfect example of governmental bureaucracy at its best.
Now, let the market place decide the fate of CIT.
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