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CIT Posts $1.62 Billion 2Q Loss; Credit Provisions Surge

By Aparajita Saha-Bubna and Kate Haywood

Of DOW JONES NEWSWIRES

CIT Group Inc. (CIT) posted Monday a $1.62 billion quarterly loss from continuing operations as the struggling lender borrowed funds at a higher rate than it loaned out and squirreled away reserves to account for future losses.

The results strike a blow to the very core of the company's small business lending operations, heightening concerns around its ability to survive. The commercial lender, hurt by the liquidity crisis as its customers drew down credit lines in fear that they might disappear, has been working in recent weeks to avoid bankruptcy.

Full Story:
http://money.cnn.com/news/newsfeeds/articles/djf500/200908171910DOWJONESDJONLINE000302_FORTUNE5.htm

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