Moral hazards (Picking winners, choosing losers pt 4)

The CIT Group needs our help.
Being one of those companies that were allowed to change their status from a financial institution to a banking company in December to get their share of the TARP funds, CIT Group was awarded $2.33 BILLION. Which they've decided isn't enough and they must be given more.
'Cause, you know... If CIT Group fails, the world's economy will follow.
Right? That's still the official line, right?

Now lets flip that coin over.

The government may choose not to honor CGs request for another BILLION dollars. As a major lender to small and mid sized businesses, they don't have access to the lobbying teams the mega banks do, nor do they have conveniently placed ex-executives in the new government.
So, in spite of the Hundreds of BILLIONS of dollars given to AIG for backing up big name banks with their 'friends with benefits [in government]', our government now debates letting CIT Group go into bankruptcy over $1 BILLION. Because hey... Who needs small and mid sized businesses anyway?

Giving some banks free access to the Fed's printing press while busting chops over other banks seeking to grab up the money the others couldn't fit into their pockets on the way out...
Giving taxpayer dollars to anyone willing to call themselves a bank...

THIS is whyipaytaxes.