Wednesday, July 15, 2009

CIT: Government Support Unlikely

by Calculated Risk on 7/15/2009 06:09:00 PM

Update 2: WSJ is reporting that a Treasury official says that the U.S. expects to lose entire TARP investment in CIT ($2.3 billion). I think that means a BK is certain, probably before the market opens tomorrow.

From MarketWatch:

CIT says government support unlikely near term
CIT says board, management evaluating alternatives
CIT: Appears no likelihood of add't gov't support
CIT: Talks with government agencies have ceased

Bankruptcy is probable.

Update: CIT Press Release:

CIT Group Inc., a leading provider of financing to small businesses and middle market companies, 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.