There was optimism around as CIT, a small business lender, managed to arrange for finances to keep itself out of bankruptcy. Investors were also pleased as the financial performance of second – quarter was reported by firms. There was also an increase of 0.3% in INDU because of the 30 points jump. There was also a 0.2% increase in SPX and 0.3% increase in COMP.
The board of CIT, in order to avoid bankruptcy, approved a deal for a 3 billion dollar loan from bondholders. CIT is a small and midsize business lender. It has been trying its best for some time to raise money when government declares that it won’t provide CIT bailout funds anymore.
Last year, government gave 2.3 billion dollars to CIT in the form of aid. There has been a huge fall in share prices of CIT since June. CIT’s recovery has given positive signs as many small businesses depend on CIT to pay for their operations.
