JCPenney Bearhug From Cit Financial. I Smell John Thain $JCP $CIT $CIT

New York Post struck a blow for headlines and jeopardized thousands of jobs by reporting that CIT Group (NYSE:CIT) is squeezing JCPenney suppliers. Subtext: The all important Christmas season is coming. If you understand retail supply chain logistics the Christmas season is happening right now.

JCPenney (NYSE:JCP) has had well documented problems. William Ackman the renowned hedge fund activist wheeler-dealer has a famous long position which he may be re-cogitating. Senior officers are changing at JCPenney. JCPenney has also stopped issuing monthly sales data and therefore visibility for suppliers and the credit structure behind them is more complicated. Clear as mud.

So the word is Cit Group is squeezing credit for suppliers. New York Post has the scoop! No one is talking official like. Will this become a Reg FD issue. JCPenney has no control and no direct knowledge of the true circumstances. CIT Financial probably does not need to disclose anything because this is not material to them. William Ackman is probably drinking a double shot of single malt right.

What’s it all mean. Is JCPenney that different now from say a few weeks ago? Probably not.

I smell John Thain the former big shooter that sold Merrill Lynch to an unsuspecting Bank of America. (NYSE:BAC) Former CEO of NYSE and a President and Co-COO of Goldman Sacks (NYSE:GS)  is sort of hanging out at CIT Group until something better comes along.

Has he crossed swords with William Ackman or is there a bigger game going on. Methinks bigger game.

By the way releasing the story when the market is traditionally the most volatile is suspicious.

Machiavellian moves within an enigma.

George Gutowski writes from a caveat emptor perspective. Follow him on Twitter @financialskepti or follow his evil twin brother who writes Wall Street Murder Thrillers @georgegutowski