CIT Rescued by Shareholders

Photo by Bluex Image, Cortesy of Stock Exchange

CIT bank received a pledge of $3 billion from its shareholders to keep it from filing for bankruptcy. It will use $1 billion of it to pay a debt due in August. Although this is a fortunate event, it may still not be enough to keep it the red and the FDIC has indicated it may close the bank down.

The U. S. conference Board has expressed optimism that the economy is showing signs of recovery and this may boost consumer confidence. S & P 500 quarterly earnings are 15% higher than expected.

Across the seas, China has been reporting since March that they are showing signs of recovery as many of the factories are reopening and no more migrant workers are returning home.