How CIT saved Christmas: Postponing its collapse gave retailers a chance

After rumors were publicized Tuesday in The New York Post that CIT's (CIT) creditors, including John Paulson & Co, were considering a merger of CIT into IndyMac, its stock shot up on the hope that a rescue plan was in place. Wednesday morning, The Wall Street Journal killed any remaining hopes for CIT's shareholders with an article reporting that the company's assets would either be turned over to bondholders or the company would face bankruptcy. Either scenario would leave shareholders with nothing.

The bigger question, is what will happen to retailers? Did CIT extend its life long enough when it got the emergency funding last August to avoid a major problem for retailers this Christmas shopping season?