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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 Zerohedge.com:

“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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