Government will not give lender CIT 2nd bailout

WASHINGTON — Struggling commercial lender CIT Group Inc. says the government will not give it another bailout.

The news increases the likelihood of a bankruptcy filing for CIT, a lender to small- and mid-sized businesses that faces a liquidity crunch.

The announcement comes after days of round-the-clock negotiations about a possible rescue for the company. CIT has warned that its failure could prolong the economic crisis by imperiling roughly one million businesses that depend on it for credit.

The New York-based company's release says CIT is "evaluating alternatives."

CIT received $2.3 billion from the $700 billion financial system bailout.