In a move that is more embarrassing than serious for the financial giant, CIT announced yesterday that the board of directors, with the support of debt holders, will accept a prepackaged restructuring deal.  According to a press release CIT said, "...none of CIT's operating subsidiaries, including CIT Bank, a Utah state bank, will be included in the filings. As a result, all operating entities are expected to continue normal operations during the pendency of the cases."  Traditionally CIT has served small and medium sized businesses so it remains to be seen how this will affect, what is already a difficult environment for for securing loans or lines of credit.

This year alone has seen over 100 banks and other financial institutions fail, stretching the resources of the FDIC to the breaking point.  CIT was given a stimulus infusion of 2.3 billion dollars and as of now it remains up in the air whether or not that money will be paid back or if it is gone to the ether.