Tuesday, November 4, 2008

US to invest in more firms

WASHINGTON -- The Treasury Department is considering using more of its $700 billion rescue fund to buy stakes in a broad range of financial companies, not just banks and insurers, after tentative signs of the program's success, according to people familiar with the matter.

In focus are companies that provide financing to the broad economy, including bond insurers and specialty finance firms such as General Electric Co.'s GE Capital unit, CIT Group Inc. and others, these people said.

The possible expansion shows how much Treasury's rescue plan has morphed since it was first proposed in September. Treasury Secretary Henry Paulson originally unveiled a complex plan to buy up financial institutions' hard-to-sell assets such as mortgage-backed securities.
http://online.wsj.com/article/SB122577147422696357.html?mod=testMod

CIT is $4.52, and could move nicely on this news.

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