CIT, Regulators in 'Advanced Talks' on Aid

Update includes information on a published report that CIT Group and the federal government are in "advanced talks" on an aid package; updates share price throughout.

CIT Group (CIT Quote) and federal regulators were in "advanced talks" about a government aid package late Monday, according to published reports.

On possible source of aid for the troubled commercial lender is participating in the Federal Deposit Insurance Corp.'s Temporary Liquidity Guarantee Program, The Wall Street Journal reported. CIT shares fell 18 cents to $1.35 at Monday's close after the company on late Sunday confirmed it had engaged a law firm to explore a bankruptcy filing if it is unable to secure a solution to its liquidity crisis.

CIT said in a statement late Sunday that it is in talks for the near-term transfer of assets into CIT Bank through certain waivers and the transfer of its vendor finance and trade finance businesses into CIT Bank. ...