CIT Group Inc, a lender to small and mid-sized businesses, said late Wednesday talks with government agencies have ended and “there is no appreciable likelihood of additional government support being provided over the near term.”
The company’s board of directors and management are consulting with advisors to evaluate alternatives, CIT said in a released statement.
CIT is facing a liquidity crunch, with $3.7 billion in debt due to be paid later this year.
A U.S. Treasury official told Reuters it was clear that the bank’s liquidity had deteriorated too much and failed to show that it could raise private capital to stay solvent.
CIT began talks with government agencies last weekend in a bid to secure short term financing.