TROUBLED US lender CIT Group had its trading halted on the New York Stock Exchange yesterday, suggesting regulators were nearing a rescue deal.
A source close to the situation said a temporary loan may be announced in the next 24 hours. The source added a temporary loan is one option being considered to give CIT room to strengthen its balance sheet by raising additional capital through debt or equity. Other options include access to the US Federal Reserve’s discount window and asset transfers. The source said there was no guarantee a plan would be reached.
CIT faces $1bn (£859m) of bonds maturing next month and has struggled to refinance its debts because the financial crisis has cut off its access to the corporate bond market.