CIT Group Inc. said late Wednesday it has been told there is
“no appreciable likelihood” of government funding in the near term.
The commercial lender said its discussions with
government agencies have ended and its board is evaluating alternatives
for the company, which is facing a liquidity crisises.
Earlier Wednesday, the White House said President Obama had been
briefed on CIT's situation but deferred questions to the Treasury Department.
Both the National Retail Federation (NRF) and the American Apparel & Footwear Association (AAFA) also earlier on Wednesday asked the Obama Administration and members of the U.S. Congress to
provide government assistance to CIT Group Inc., saying failure of the
major lender could have severe consequences for the retail industry and
the nation's economy.
Sources told the Wall Street Journal that drawdowns were about $500 million on Monday, but by Tuesday
had risen to around $750 million.
