CIT Decision To Cut Off J.C. Penney Blown Out Of Proportion

Concerns emanating from the commercial lender CIT Group Inc. (NYSE:CIT) abrupt halt of deliveries to J.C. Penney Company, Inc. (NYSE:JCP)’s stores have been overblown, according to JPMorgan analysts. Yesterday, J.C. Penney Company, Inc. (NYSE:JCP) denied rumors that CIT Group Inc. (NYSE:CIT) has pulled off support for small vendors, compounding a sharp drop in its same store sales. The commercial lender CIT is popularly called a ‘factor’ and makes cash advances to suppliers based on the goods they sell to J.C. Penney. If suppliers stop shipping goods for want of advance from the factor, it would signal a death knell for retailers like…