CIT Group -- Too Small to Save
Excerpt from the InvestorGuide.com Stock of the Day on 7/15/2009

The too big to fail theory is meeting a significant test in Washington right now as the government and the FDIC wrestle with the question of whether to bailout CIT Group and if so, how? CIT is not a quintessential financial powerhouse as its balance sheet totals only $75 billion but it is a big player in the small business lending market. Therefore, the firm is selling the deep financing connection that it has with the small business community to make its case for a bailout. Initially, the administration was not having any of it but now they seem to be coming around. More >

Capital One Slashes Dividend
Excerpt from the InvestorGuide.com Stock of the Day on 3/9/2009

Capital One announced on Monday that it will slash its quarterly dividend by 87% as a cost-cutting procedure. This cut will be implemented in the second-quarter of 2009 and will reduce the company's dividend to 5 cents a share from 37.5 cents. The company said that this cut will save around $500 million annually. Capital One has simply been added to the growing list of companies that have decided to cut quarterly dividends as each tries to conserve capital during this prolonged economic downturn. What was the motivating factor that led the company to this decision? Will this cut be enough to help the company weather the remainder of this financial storm? More >