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WASHINGTON (AP) - CIT Group Inc.'s inability to get emergency government funding raises expectations that the commercial lender will file for bankruptcy.
But it is unclear how such a filing by a company that lends to millions of small and mid-size businesses would affect shaky financial markets hobbled by an economy in recession and bleeding millions of jobs a month. Small businesses are seen as keys to economic recovery.
CIT said late Wednesday that negotiations with regulators about a po...
Street Overcomes CIT Woes
Steve Schaefer, 07.16.09, 02:30 PM EDT
Lender's potential bankruptcy limits gains, but stocks rise after JPMorgan posts solid Q2 earnings.
Wall Street seesawed Thursday as investors pondered ups and downs in the financial sector. JPMorgan Chase booked better than expected second-quarter earnings, but any enthusiasm for its report was tempered by concerns that CIT Group may slide into bankruptcy.
The lender was on the brink after government regulators rebuffed its efforts to receive FDIC backing or another bailout from the Treasury. Reports said CIT Group ( CIT - news - people ) was in talks with private equity groups about an 11th-hour injection of $2 billion to $3 billion, but the firm may be forced to file Chapter 11 as soon as Friday.