Finally, the truth comes out!
CIT shares fell to $1.44 from $1.74 in trading on the New York Stock Exchange. The shares had almost doubled in August from 87 cents at the start of the month, amid a broad rally in financial stocks.
The cash-strapped company said in a filing with the U.S. Securities and Exchange Commission that it cannot pay an interest payment due September 15 to holders of its March 15, 2067 junior subordinated notes.
I hope that the players in the huge CIT volume the last few days really lost their asses on this one.