Arnold Kling  

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Simon Johnson thinks that CIT, a troubled lender, will not be bailed out.


Traditionally, CIT provided vanilla loans to small and medium-sized business. "But under its current chief executive, Jeffrey M. Peek, a well-liked Wall Street veteran who lost out several years ago in a race to run Merrill Lynch, CIT made an ill-timed expansion into sub-prime mortgage and student lending" (NYT today)

...At least in terms of what is in the public record, Mr. Peek has not been overly generous, but he did give money to John McCain - and not to any Democrats. If this is in fact the limit of his recent contributions, I think you know the outcome.


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CATEGORIES: Political Economy



COMMENTS (3 to date)
Yancey Ward writes:

The bailout decision will depend on the identity of CIT's lenders, and the effect their losses.

manuelg writes:

Yancey Ward:

> The bailout decision will depend on the identity of CIT's lenders, and the effect their losses.

Hear, hear. To a first approximateion, the bailout is monies directly wired to Goldman Sachs, or through a single intermediary.

mark writes:

You may be interested in this link:
"Nearly all my Prof are Democrats: Is that a Problem?"

http://www.csmonitor.com/2009/0713/p09s02-coop.html

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