Troubled lender CIT Group said Tuesday it has delayed filing its second-quarter report with regulators and said if it could not complete its debt tender or arrange other financing, it would file for bankruptcy. CIT Gets $1 Billion in Credit AidFannie Mae Asks for More Aid After Sharp LossRBS Posts Loss, Sees Tough 2 Years AheadThis Bank Stock is 'Heart Attack Patient'More Economic News
CIT is still reviewing assets and businesses that it may sell as well as the related valuation adjustments that must be included in the report, it said in a filing with the U.S. Securities and Exchange Commission.
New York-based CIT, which last month secured $3 billion in emergency funding from bondholders, has been battling to restructure its debt and avoid bankruptcy.
*Stock market drop today is based on STT news yesterday and today's news from CIT: they cannot get the needed debt restructure. So after JPM and GS gave oodles of loans (at loansharking interest rates) just last month, it did little to save CIT from bankruptcy. One can only imagine how much this means to JPM and GS balance sheet. But the US government will likely give them a free pass on any losses anyway, so not to worry.