CIT shares fell 18 cents or 11

CIT shares fell 18 cents, or 11.8 percent, to close at$1.35 on the New York Stock Exchange. (For an analysis related to CIT please click [ID:nN13365218]) (Reporting by Karey Wutkowski; Additional reporting by MarkFelsenthal; Editing by Phil Berlowitz, Gerald E. CIT’s deteriorating condition also comes as the governmentis asking Congress for authority to dismantle bank holdingcompanies in an orderly manner. The FDIC currently has the authority to wind down troubleddepository banks but does not have similar authority to resolveissues at bank holding companies that have become insolvent.

The Obama administration has proposed expanding FDIC’spowers to include bank holding companies. Treasury Secretary Timothy Geithner said on Monday that thegovernment is closely watching developments associated with CITand is confident the government would be able to deal with thelender. “I am actually pretty confident in that context that wehave the authority and the ability to make sensible choices,”Geithner said in London in response to a question about how theU.S government might deal with the company. The Treasury and Fed have been exploring other options forCIT, including the transfer of troubled assets from the holdingcompany to its depository bank unit, which could improve thelender’s liquidity position.

Unlike other government aid programs, the debt guaranteefacility does not rely on taxpayer money. The FDIC would haveto absorb any losses that result from the facility, and wouldhave to recoup the funds by taxing the bank industry. WHAT:80 Million Strong Youth Summit on JobsWHEN and WHERE:Tuesday, July 14, 2009 – ConferenceCapitol Visitor Center, Rm. 215 A&B8:30 am to 7:00 pm Wednesday, July 15, 2009 – Advocacy DayCapitol Hill9:00 am to 12:00 pmWHO:Members of the Youth Activist Network of Advocates for YouthAaliyah Nobles Alexanderis a 24-year-old program specialist for No Kidding:Straight Talk from Teen Parents in Texas.

Thisprogram uses teen parents aspeer educators to deliver presentations to middle and high school-aged youth. Abbey Marr is a recent graduate from George Washington University and a formermember of Advocates for Youth’s International Youth Leadership Council. Shehas used passion for advocacy to fight for the rights of young people to makeinformed decisions about their lives. Cree Gordon is a member of Youth Resource, an online peer education site byand for gay, lesbian, bisexual, transgender, and questioning (GLBTQ) youngpeople.