CIT won't be rescued; CIT has been rescued

There was no way the FT or anyone else could've predicted the rescue, which is kind of the point.

Financial Times, "CIT on the brink after bail-out talks fail," July 17:

Shares in CIT, the US small business lender, fell more than 70 per cent yesterday after the failure of government bail-out talks prompted growing fears of a bankruptcy filing.

The company was yesterday scrambling to obtain last-minute financing commitments from lenders that could help CIT persuade the Federal Deposit Insurance Corporation to allow it to transfer assets to its banking subsidiary, said people close to the situation.

However, chances of success were slim, these people said, and the company was also engaged in talks with lenders about financing that would allow the business to keep operating while in bankruptcy.

Financial Times, "CIT board approves $3bn rescue package," July 20:

CIT’s board on Monday approved a two-year, $3bn rescue package with a group of lenders enabling the troubled US finance group to avoid a bankruptcy filing, after round-the-clock weekend talks.