by Calculated Risk on 7/11/2009 01:09:00 AM

CIT Group (no relation to Citigroup) is like GE Capital. They provide financing for almost 1 million businesses and had about 76 billion in assets as of March 31st.

From the WSJ: Major Lender Faces Crunch

CIT Group Inc ... is preparing for a possible bankruptcy filing ... CIT has retained the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, ...
...
CIT has a $1 billion payment due in mid-August and it is unclear the company "will be able to handle that," said this person. The company will give more guidance when it discusses second quarter earnings in two weeks.
...
A bankruptcy filing by CIT could affect thousands of small borrowers, from Dunkin' Donuts franchisees to restaurant owners and clothing retailers.

... the government has made it clear it doesn't see the company as a systemic risk to the financial system. The people familiar with the matter said the government feels that other lenders, such as J.P. Morgan Chase & Co. or Deutsche Bank AG, can handle many of the same loans that CIT specializes in, such as loans to small retailers or rail-car leasing firms.

Meanwhile, competitors like GE Capital Corp. and GMAC LLC have been able to sell debt with the backing of the government's top credit rating.

Apparently the government thinks CIT's competitors could pick up most or all of their business.