Banks On The Hook For CIT

Bloomberg has the story on CIT drawing down $7.3B of credit lines in a frantic effort to roll over its short term debt and keep operating. The events triggered a drop in the stock of at least 42% and intermittent suspensions of trading.

Of special interest to us, the story also mentions the main banks providing those credit lines:

• Citigroup (as if there was any doubt)
• JPMorgan Chase
• Bank of America
• Barclays

All have a long history of financing CIT.

The upshot: yet another reason for this esteemed cadre to be sweating right about now.

CIT is an independent financer of everything from cars to planes, founded in 1908.