This is potentially very bad for the alarm industry
CIT, which has traditionally been a major lender to the alarm industry, looks to be on the brink of bankruptcy. Gretchen Gordon, who runs their media/alarm division, is a friend of the paper so I'm going to try to tactfully ask her what the potential implications are, though I imagine she's kind of busy right now. This would be the part that would seem to affect the alarm guys, though Gretchen has told me in the past they didn't really get involved with small alarm deals:
Founded in St. Louis in 1908, CIT boasts on its website that 1 million business customers depend on it for financing. Many may now have to depend on someone else, at a time credit markets remain tight, reducing business activity as the government tries to lift the economy out of recession. Failure to meet its obligations â€œwould be a disasterâ€ for small and mid-market borrowers that depend on CIT, said Eric Goodison, a partner at Paul, Weiss, Rifkind, Wharton & Garrison LLP in New York. Published reports said many customers drew down credit lines in recent days as CITâ€™s problems became widely known. Steve Bartlett, chief executive of the Financial Services Roundtable, said in an interview that 10,000 small businesses could be choked off from needed funds if CIT failed.I guess it depends on the definition of small business, too.