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CIT Group Saga Continues

Anyone else find these Bloomberg headlines comical?  Cannot make August payment without successful tender, may have to seek bankruptcy protection, equity shares UP 6.4% when trading resumes….CIT

Update: Interesting post ubmitted by Joe Saluzzi and Sal Arnuk at Themis Trading and posted at

“CIT had some awful news out this morning. The stock was halted right after the opening and once reopened it tanked almost 50%. But then a magical thing happened, the stock traded back to $1 from a lowof $0.75. What is so magical about $1? Any stock that trades under $1 is not eligible for a liquidty rebate from the exchanges/ecn’s. The cost to trade sub $1 stocks is FREE but you don’t get the rebate. Butif the stock gets over $1, the the liquidity rebates which could be as high as $.003/share kick in. So, it appears that the high frequency traders will be desperate to keep this stock above $1 today so they can keep collecting those rebates. There is no fundamental valuation for $1, it is simply a matter of high frequency economics. “

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