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[langlui]

bye bye CIT

Washington — The Associated Press Last updated on Wednesday, Jul. 15, 2009 06:28PM EDT

Struggling U.S. commercial lender CIT Group Inc. (CIT-N1.640.031.86%) says the government will not give it another bailout.

The news increases the likelihood of a bankruptcy filing for CIT, a lender to small- and mid-sized businesses that faces a liquidity crunch.

The announcement comes after days of round-the-clock negotiations about a possible rescue for the company. CIT has warned that its failure could prolong the economic crisis by imperilling roughly one million businesses that depend on it for credit.

The New York-based company's release says CIT is “evaluating alternatives.”

CIT received $2.3-billion (U.S.) from the $700 billion financial system bailout.