Losses mounted in the quarter as the embattled New York-based lender as borrowing costs exceeded income from lending to customers, and as it set aside more money to protect against future loan losses. CIT lost $4.30 per share during the quarter ended June 30. During the same quarter last year, CIT lost $2.08 billion, or $7.88 per share, due to a $2.55 billion charge from discontinued operations.
CIT's loss from continuing operations during the most recent quarter totaled $1.62 billion, compared with earnings from continuing operations during the year-ago period of $47.9 million.
In its quarterly report to the Securities and Exchange Commission, CIT said there is still “substantial doubt” about its ability to continue operating. Just last month, CIT was bailed out with a $3 billion loan from some of its largest bondholders as it faced a cash crunch. It also launched an offer to repurchase $1 billion in outstanding debt that was successfully completed Monday, helping to stave off a potential bankruptcy filing.
