CIT Group Sees Additional Government Support as Unlikely

CIT Group (CIT), the commercial lender that has been pleading for a federal bailout, says its discussions with government agencies have ceased.

From BW:

CIT, today announced that it has been advised that there is no appreciable likelihood of additional government support being provided over the near term.

The Company’s Board of Directors and management, in consultation with its advisors, are evaluating alternatives.

The New York Stock Exchange stopped trading in CIT shares on Wednesday amid speculation that regulators were close to a plan that would rescue the New York-based lender. The Treasury Department, commenting on CIT’s statement that talks with federal regulators on potential aid have ceased, said in a statement, “Even during periods of financial stress, we believe that there is a very high threshold for exceptional government assistance to individual companies.”

CIT’s supporters unhappy of the regulators decision pointed to one million customers who may lose funding, including 300,000 retailers.

According to analysts a bankruptcy filing for the New York-based CIT could come as early as Wednesday night.

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