CIT: How many more bailouts to come?

Update: CIT shares were halted Wednesday. A source says that U.S. officials are concerned that CIT's woes have deteriorated further which could possibly land the company in bankruptcy. A decision is expected within 24 hours.

CIT Group Inc. (CIT) is close to getting a set of short-term loans to tide it through a liquidity crisis.

The Wall Street Journal, which broke the story about the financial firm's instability, reports that customers worried about the company drew down hundreds of millions of dollars on credit lines. The paper reports that the firm may be allowed to transfer some assets from the parent to financial divisions so that "the Federal Reserve would let CIT pledge some of those assets at its discount window and the company would take steps to refinance some of its existing debt."