March 20, 2008 – 2:54 pm
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.
