CIT Group (CIT) Up Big on Merger/Loan Possibilities

CIT Group (NYSE: CIT) is up 17% at $1.97/share on over 2X normal volume.

There are two possible reasons for the jump.

Earlier today many were speculating that CIT would possibly merge with Indy Mac Bank (the firm that failed in 2008) but was reincarnated as Indy Mac Federal Bank. However later in the day several sources have said there is no truth to this rumor.

The other possibility is the establishment of a new credit line for up to $10B dollars. This might help CIT buy more time to establish a more permanent solution to its liquidity problems.

CIT Group is down 95% over the past 2 years.