Cash-Squeezed CIT Struggles to Survive

posted: 135 DAYS 10 HOURS AGO

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NEW YORK (July 13) - Diversified lender CIT Group Inc. said it is still in talks with regulators on ways to improve its near-term liquidity as recent losses may jeopardize its compliance with capital requirements.

The company, which in April posted a wider-than-expected first-quarter loss, said late Sunday that it will talk with regulators about the possibility of participating in the Federal Deposit Insurance Corp.'s Temporary Liquidity Guarantee Program.

If CIT is unable to receive access to the TLGP program it would have to find alternative funding that would likely need to be secured by its assets.

CIT is also considering the possible transfer of assets into CIT Bank as well as the transfer of its vendor finance and trade finance businesses into the bank.

The company said, which has faced a series of downgrades by ratings agencies recently, there is no guarantee that its discussions with regulators will result in any action.

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2009-07-13 06:55:47