CIT's Troubles May Bode Well for GE Capital: Analysts
The difficulties faced by CIT Group may help GE Capital as it will allow GE's finance unit more room to diversify, two analysts told CNBC Friday.
CIT Group , lender to thousands of small and medium-size businesses in the US, said in a statement Thursday after the bell that its board of directors and management were evaluating alternatives to improve the company's liquidity, adding the firm was in discussions with potential lenders to secure financing.
"From a GE perspective they should be able to get some pricing power out of this. GE is left as a very strong player on this market, the question is does it want to take increased risk," Richard Wilson, fund manager at Threadneedle Asset Management, told CNBC.
GE is CNBC's parent company.
"The problem with GE Capital is, unlike GE, GE Capital is actually not that well diversified," Ralph Silva, director at TowerGroup said ahead of the industrial giant's earnings Friday.
If CIT went into bankruptcy, it would benefit GE Capital in terms of diversification, Silva added.