GE, CIT shares rise on reports of Treasury role

Industry representatives and companies have been making their cases to Treasury about why they deserve a share of this or other programs designed to restore liquidity and loosen the frozen credit markets that are hampering economic activity, according to people with knowledge of Treasury's evolving $700 billion financial bailout.

No company would describe the substance of its conversations with Treasury, except to say they are communicating with Treasury about the rapidly changing bailout programs.

"Of course we want to have a voice in these debates and discussions," said GE spokesman Russell Wilkerson.

"We've had a number of conversations with Treasury on a number of topics," Wilkerson said. He said the company would consider accepting a capital injection from the government but would not say whether GE already had asked Treasury to consider it.

Analysts said news of broadening bailout programs likely boosted the stocks of companies that could be involved.

Shares of Fairfield, Conn.-based GE gained 7.6 percent, or $1.47, to close at $20.77. New York-based CIT's shares soared 36.1 percent, rising $1.63 to $6.15.

"Any new avenue to liquidity is going to be viewed as a positive in the market no matter who you are," said Joel Levington, director of corporate credit at Hyperion Brookfield Asset Management Inc. in New York, who follows GE.

But Levington said he doubted that GE needs more cash or wants additional financing, given the company's assurances of its long-term strength.

GE has responded to the financial crisis by taking part in a Federal Reserve program to stabilize the corporate debt market, for which GE is the largest issuer. It also has sought additional financing while declining to raise its dividend this year for the first time in 32 years.