Sources say CIT Group (CIT +11.6%) and Goldman Sachs (GS) have reached an agreement over a $1B...

|About: CIT Group Inc. (CIT)|By:, SA News Editor

Sources say CIT Group (CIT +11.6%) and Goldman Sachs (GS) have reached an agreement over a $1B "make whole" payment CIT would owe Goldman if it files for bankruptcy. The deal calls for Goldman to reduce a $3B loan facility to just over $2B, and for CIT to pay Goldman $300M if it files for bankruptcy. An agreement opens the door for CIT to strike a deal with its bondholders, who were waiting on the outcome of the Goldman talks, and could also reduce CIT's need for financing from $6B to $4B.