Friday, July 17, 2009
CIT Group (CIT) Talking with JP Morgan and Goldman Sachs about Financing Options
The Government stated they would not back CIT Group (CIT) but technically they are. CIT is in talks with JP Morgan (JPM), and Goldman Sachs (GS) seeking short term financing for $2 to $3 Billion to avoid bankruptcy. If JP Morgan and Goldman Sachs back CIT Group, and the U.S. Government is backing JP Morgan and Goldman Sachs... Then isn't the U.S. Government technically backing CIT Group?
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2 comments:
it's a stretch.
so bull or bear on CIT?
Well I have to assume that GS or JPM will save them so I think Bull. Shares will most likely be diluted, but better than going bankrupt. Look at the options for this. The bid for the July was $10 per contract not too long ago. If that's the case it would be a nice trade until about 3:59 assuming it stayed at these levels into close.
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