CIT Group records $1.68 billion 2Q loss

[August 18, 2009]  NEW YORK (AP) -- Struggling commercial lender CIT Group says it lost $1.68 billion in the second quarter.

Losses mounted as CIT's borrowing costs exceeded income from lending money to customers. Additionally, CIT set aside money to protect against future losses.

The New York-based company posted a loss of $4.30 per share during the quarter ended June 30. During the year-ago period, CIT lost $2.08 billion, or $7.88 per share, due to a $2.55 billion charge from discontinued operations.

Despite successfully completing a debt purchase Monday, the company said in a Securities and Exchange Commission filing that there is still a chance it could be forced to file for bankruptcy protection.

[Associated Press]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.