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| US bank secures $3bn rescue loan | US bank secures $3bn rescue loan |
| (9 minutes later) | |
| Troubled US bank CIT has secured a $3bn (£1.8bn) rescue loan from bondholders, removing the immediate threat of going into bankruptcy protection. | Troubled US bank CIT has secured a $3bn (£1.8bn) rescue loan from bondholders, removing the immediate threat of going into bankruptcy protection. |
| The company said it now planned a comprehensive restructuring of its debts, but gave few details. | The company said it now planned a comprehensive restructuring of its debts, but gave few details. |
| Despite the cash boost, some analysts said it may only delay the need for CIT to make a bankruptcy filing. | Despite the cash boost, some analysts said it may only delay the need for CIT to make a bankruptcy filing. |
| CIT, which specialises in loans to smaller firms, has been hit by the credit squeeze and recession. | CIT, which specialises in loans to smaller firms, has been hit by the credit squeeze and recession. |
| The US government has ruled out bailing out the bank. | The US government has ruled out bailing out the bank. |
| CIT is seeking to split its profitable operations from the loss-making parts of the business. | CIT is seeking to split its profitable operations from the loss-making parts of the business. |
| Analyst Michael Goldsmith, a managing director at financial advisory firm BBK, said he was concerned at the high interest rates CIT will have to pay for the $3bn loan. It is estimated that CIT will have to pay an annual rate of 10.5%. | |
| CIT's shares rose 79% on Monday before the loan announcement, but the share price remains only 10% of its peak value in the past 12 months. | CIT's shares rose 79% on Monday before the loan announcement, but the share price remains only 10% of its peak value in the past 12 months. |
| The company has debts of about $40bn. |