WRAPUP 4-US mulls temporary loan for CIT - source

miércoles 15 de julio de 2009 06:40 CEST
 

* Fed window access, asset transfers weighed - source

* Breathing room for CIT to raise capital - source

* FDIC remains opposed to using debt guarantee program

* CIT shares rise 19 percent on rescue hopes (Adds details of aid plan from source, byline)

By Rachelle Younglai and Elinor Comlay

WASHINGTON/NEW YORK, July 14 (Reuters) - U.S. officials are considering giving CIT Group Inc (CIT.N: Cotización) a temporary loan as part of an aid package to help the lender avoid collapse, a source familiar with regulators' thinking said on Tuesday.

The temporary loan is one option being considered to give CIT room to strengthen its balance sheet by raising additional capital through debt or equity, said the source who requested anonymity because the plans could change.

Other options include access to the U.S. Federal Reserve's discount window and asset transfers, the source said. The source said there was no guarantee a plan would be reached.

CIT, a lender to thousands of small businesses, is pushing for government aid in its fight to survive. CIT clients tapped their credit lines, drawing some $750 million from the company in two days, the Wall Street Journal reported, citing unnamed sources.   Continuación...