Originally Posted by Villages Kahuna

It looks at the moment that CIT, the big finance company, will file for bankruptcy as early as Monday morning. Their appeals to the federal government for bailout financing have been met with a firm NO! answer. Because CIT has no debtor-in-possession financing arranged and little chance of accomplishing that, it would appear that CIT will probably be liquidated, either purchased by another financial institution or broken up in pieces and sold off.

CIT's failure will have widespread effects on many small and medium-sized businesses to whom CIT provided financing. They too will find themselves in a position of having no source of debt financing to continue their operations.

Here's an article describing how CIT got to where it finds itself.

http://online.wsj.com/article/SB1247...ml#mod=testMod

As painful as this might be, the fed's NO! answer is almost certainly the right one. (IMHO, at least.)