Reuters reported as breaking news:
CIT says discussions with government agencies have ceased; advised there is no appreciable likelihood of additional government support being provided over the near term.
It seems the Obama suggestion that TARP be expanded to small businesses was offered to fill the gap from a CIT implosion. Watch for who makes big money in CIT's fall. Will it be Goldman Sachs? Will they do it straight up or on the taxpayers' back, courtesy of AIG's credit derivatives? The big money boys have been making bets. How will the wagers fall & when will they cash in?
New board member Christopher Shays' CIT stock may soon be worthless. Who will make it up?
(Note: for more on AIG's credit derivative exposure click here)