July 9 CIT Group Inc (CIT.N), a commercial U.S.
lender struggling to finance its business, is pressing U.S.
regulators to allow it to issue government-backed bonds to
allay concerns over its financial health, the Financial Times
reported on its website late on Wednesday.
CIT converted to a bank holding company in the fourth
quarter of 2008 to qualify for U.S. government funds, but it
has been unable to issue government-backed debt as the Federal
Deposit Insurance Corp (FDIC) has yet to approve its
The FT cited people close to the situation as saying CIT,
which has about $75 billion in assets, had already drastically
cut lending, but warned that without the FDIC's assistance the
company might be forced to ask the Treasury and the Federal
Reserve for help.
A former government official familiar with the situation
told the paper CIT and the regulators were meeting almost every
week but it was not clear why the FDIC had not yet approved the
CIT and the FDIC told the FT the application was still
pending but declined to comment further.
On Wednesday, Fitch Ratings cut its ratings on CIT deeper
into junk territory, citing concerns over the commercial
lender's funding sources. [ID:nN08400046] CIT and the FDIC
could not be immediately reached for comment by Reuters.
(Reporting by Ajay Kamalakaran in Bangalore; Editing by