RILA Urges Government Action to Protect CIT from Collapse 

The Retail Industry Leaders Association (RILA) today urged federal action to protect CIT Group from collapse.

In a letter to U.S. Treasury Secretary Timothy Geithner, RILA President Sandy Kennedy asked federal officials to “reconsider action to ensure that this situation does not create further pressures on the current credit market.”

CIT Group is an important resource for retail businesses struggling to meet their financing needs in the current credit environment.

“Any additional tightening of the credit markets will only exacerbate the constraints on our members’ ability to provide the products that consumers seek and most importantly, to maintain millions of retail jobs across the nation,” said Kennedy.

Retail Industry Leaders Association (RILA) is a trade association of the largest and most successful companies in the retail industry. Its member companies include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales. RILA members operate more than 100,000 stores, manufacturing facilities and distribution centers, have facilities in all 50 states, and provide millions of jobs domestically and worldwide.

 Full Letter Text Below

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July 16, 2009

The Honorable Timothy F. Geithner
Secretary
Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, DC 20220 

Dear Secretary Geithner:

As the financial markets struggle to recover, recent news concerning CIT Group’s financial difficulties have raised significant concerns in the retail industry. The latest press reports that the government has decided against further assistance for CIT Group have only accentuated these concerns. As the representative of some of the most significant retail operations in this country, the Retail Industry Leaders Association (RILA) urges you to reconsider every available option to ensure that this situation does not create further pressures on the current credit market.

 With the back-to-school shopping season right around the corner and holiday shopping not far behind, retailers across the nation are working hard to achieve a successful year. Fundamental to that effort is adequate financing for the products that are sold through the various points in the supply chain. With over a million business customers, CIT Group is an important resource for retail businesses struggling to meet their financing needs in the current credit environment.

As a leading factoring company in the United States, CIT Group is an essential source of financing for manufacturers and small and large retailers, including many of RILA’s 200 member companies. Any additional tightening of the credit markets will only exacerbate the constraints on our members’ ability to provide the products that consumers seek and most importantly, to maintain millions of retail jobs across the nation.

We urge you, the Federal Reserve and the bank regulators to work with all possible speed to address this situation. Thank you in advance for your prompt attention to this matter.

Sincerely,                          

Sandy Kennedy
President

cc:

The Honorable Ben S. Bernanke
Chairman, Federal Reserve Board of Governors

The Honorable Sheila C. Bair
Chairman, Federal Deposit Insurance Corporation