Langlui's Big Board and Options Plays

[C C]

GS, JPM, MS & BCS help in finncing CIT...???

Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM), Morgan Stanley (MS) , and Barclays PLC (BCS) are also in early talks to provide $2 billion to $3 billion in financial help for CIT, according to people familiar with the matter. This would include new money, rather than simply rolling over existing debt.

This money could either be used to keep CIT out of court or become debtor-in- possession financing in a worst-case scenario. DIP financing would give the banks seniority over all of CIT's other creditors. Curt Ritter, a spokesman for CIT, didn't respond to requests for comment.

Bankruptcy is still on the table if the rescue talks fail, according to one of the people, who said that a filing could come early next week.

CIT's short-dated bonds were higher Friday, according to MarketAxess, as market participants bet CIT will reach some sort of deal

"There's definitely speculation about some kind of bond exchange over the weekend, but it's just speculation," said Pete Brady of Broadpoint Capital.

Like the common stock, CIT's Series A and Series C preferred stock soared Friday on the potential financing deal, after cratering Thursday on the risk of impending bankruptcy.






http://money.cnn.com/news/newsfeeds/articles/djf500/200907171724DOWJONESDJONLINE000767_FORTUNE5.htm



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