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Should CIT Group be saved?

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By the time of this writing, CIT Group (NYSE: CIT) fate is still unknown. A while ago (Apr 24 2009) I wrote about CIT Group because I traded it on that day. I felt the situation looked more an more like WaMu as that afternoon the rating agency downgraded the rating of CIT bond to “junk” or “default” (I can not remember exactly).

CIT Group NYSE pic

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CIT group

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(Update 24Apr09 afternoon) Sold my position. Moody just downgraded its debt rating: reminds me of the WaMu debt rating downgrade shortly before its fall.

(Original) Warning: this is a very speculative play. Also don’t confuse this with CitiGroup (NYSE: C). The ticker of CIT group at NYSE is CIT.

CIT group at NYSE pic

(Source: NYSE)

4 Analysts downgraded this stock this morning (source: theflyonwallstreet, also Yahoo Finance).

Wiki entry for CIT group, noticed it was a part of Tyco (a smaller GE if you will) at one time. Chinese news on CIT (about one year old). The company recently coverted to a bank holding company so that it could get fund access to TARP, FDIC, and more importantly bank deposits.

Q1 2009 earning release. Conference call.