The crisis at CIT, one of the largest US middle-market lenders, worsened on Monday with the company talking to regulators about ways to stave off failure while its credit ratings were cut deeper into junk territory A failure at CIT could result in losses for Goldman Sachs and Wells Fargo, the FT said. Goldman last year agreed to a $3bn secured financing facility for CIT and Wells Fargo provided $500m in secured financing. The WSJ said US government officials were in advanced talks about providing some sort of aid to the company, but it added the discussions are fluid and that it remained unclear whether a final deal could be brokered.

This entry was posted by Stacy-Marie Ishmael on Tuesday, July 14th, 2009 at 4:37 and is filed under Capital markets. Tagged with CIT, goldman sachs, wells fargo. Edit this entry.