CIT seeks private capital after bailout bid is rejected

Denied a government bailout, foundering middle-market commercial lender CIT Group (CIT) is scrambling to line up as much as $3 billion in capital from private investors in a bid to stave off bankruptcy.

It's a race against time. The Wall Street Journal and CNBC, among others, are reporting that CIT has given the investors 24 hours to decide whether to decide if they will plow the needed cash into the company. In the meantime, its condition is worsening as customers draw down credit lines they fear might not be there tomorrow.