Just a few days ago, it seemed fait accompli that CIT would fail. The government, after all, had declined requests to save the 101-year-old lender. Essentially the government decided not to double down, having already sunk $2.33 billion into the lender. But over the weekend, the bondholders decided to throw the firm a lifeboat.

Pacific Investment Management Company and others seem close to announcing a deal that would inject up to $3 billion in the firm over three years, the media has reported. Of course, the hope is that the lender will be able to restructure its debts and stay out of bankruptcy. We'll see what happens. The company loans mainly to small and medium-sized businesses, and the worst may not be over. Already, it has cut way back. 

For more:
- here's a CNNmoney article

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