Cramer: CIT Needs Giant Infusion of Capital (CIT)

On CNBC's Stop Trading! this afternoon, Jim Cramer talked about CIT Group (NYSE: CIT), which earlier announced that it would need to undertake drastic liquidity actions in order to repay debt and finance its core commercial franchises.

Cramer told viewers of his segment to look at CIT's 10Q if they were interested in seeing just how bad things are at the company. Jim said CIT has one of the worst packages of bad loans on the Street, putting it in front of only E*TRADE (Nasdaq: ETFC). He said CIT overloaded itself with troubled home equity and student loans at the worst possible time, and called its collection of loans "a nightmare".

When Street Signs host, Erin Burnett, pointed out to Cramer that there are infact positives in CIT's business, Cramer agreed, but told her that "enough of the bad can overwhelm the good". Putting it as easily as possible, Cramer admitted that CIT needs a "giant infusion of capital" from an outside investor.

CIT Group, Inc., a commercial finance company, provides financing and leasing capital for companies and consumers in various industries. [BCS]

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