CIT Soars On Talks With JPMorgan, Goldman

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Check it out. CIT (CIT) which was thought to be declaring bankruptcy today, is up over 100% on a Reuters report that the company is in talks with both JPMorgan (JPM) and Goldman Sachs (GS) for a lifeline.

There’s been chatter to this effect for a while, but there are still no specific about this — common shareholders are likely to take some huge dilution, regardless of the deal.

Could we be looking at the return of the Sunday-night rescue? Wheeee!

Update: On CNBC they’re already talking about crisis averted, which seems premature. On guest said that if CIT failed, there’d be “retail Darwinism”… um, as in capitalism?

Update 2: Steve Liesman — who is as well-sourced in government as anyone in the world — still thinks there’s a chance that if private money comes in, the Terasury will backstop it, or add some bucks of its own in some manner. Surprise, bailout still on!

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