Is this the end of CIT? It acknowledges that the chances of a government bailout are slim to none right now. TARP funds do not appear to be available to it; it's already taken $2.33 billion in taxpayer funds. The FDIC is not willing to guarantee its debts, to allow it to raise capital. The large commercial lender--which focused on smaller companies--just isn't systemic enough and it's immediate business plans apparently haven't inspired enough confidence.

Most assume that bankruptcy is the next logical step, barring a last-minute deal with a white knight. That would be historic: It would be the first TARP bank to fail. The New York Times notes it would be the largest American lender to fail since Lehman Brothers. So there goes one portfolio investment held by the government. Good thing its diversified. 

For more:
- here's the article

Related Articles:
The fate of CIT
CIT Group Inc.
Special Report: TARP payback