CIT Challenging Key Levels (CIT)

Posted in pre-market 
October 30th, 2009

CIT Group Inc. (NYSE: CIT) Is getting “pantsed” this morning on the NYSE.  Goldman Sachs Group (NYSE: GS) has trimmed the size of its loan.  Rather than $3 billion, Goldman is loaning some $2.13 billion.  This is two days after CIT raised $4.5 billion and as it continues on its restructuring efforts.  CIT also put up $250 million in collateral and oaid $285 million to Goldman for a reduction of the facility.

UPDATE 9:21 AM EST: We have now seen almost 3 million shares trade and expect more to come on rapidly.  Shares are now down 16% at $0.80 on talk that its pre-packaged bankruptcy filing may come as early as this weekend or Monday morning.  Shareholders of common shares know how bad this generally is form them.  Real bad.

At 8:56 AM EST we have shares trading down 7.3% at $0.88 on almost 1.4 million shares.  Of course the volume is extremely high at 87 million shares on average per day, but this gets the stock within striking distance of yesterday’s $0.85 low and with the $0.82 low on OCT 13.  We saw those same levels in early-August.  JON OGG

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