CIT generated $42.2 billion in factoring volume in 2008, down from $45 billion in 2007, according to the company's annual report. That is less than 1% of the combined $3.9-trillion retail industry and $5.3-trillion manufacturing industry in the U.S., an amount CreditSights characterizes as "relatively insignificant."
It is unclear what will become of the talks with federal regulators. CIT issued a statement Monday saying it was in "active discussions" with regulators on "a series of measures to improve the company's near-term liquidity position."
Among the options being discussed are CIT's application to participate in the Federal Deposit Insurance Corp.'s temporary liquidity guarantee program, which allows cash-squeezed companies to issue government-backed bonds to raise capital at a lower cost.
The Wall Street Journal reported Tuesday that CIT and regulators were negotiating an aid package that would let CIT move assets to its Utah bank division. CIT would then pledge some of those assets at the Federal Reserve's discount window and would refinance some debt.
In December, CIT received $2.33 billion from the Treasury's Troubled Asset Relief Program
A CIT spokesman declined to comment further.
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smjones@tribune.com
