There’s been chatter to this effect for awhile, but there are still no specific [details] about this — common shareholders are likely to take some huge dilution, regardless of the deal.

Could we be looking at the return of the Sunday-night rescue? Wheeee!

Update: On CNBC they’re already talking about crisis averted, which seems premature. One guest said that if CIT failed, there’d be "retail Darwinism"… um, as in capitalism?

Update 2: Steve Liesman — who is as well-sourced in government as anyone in the world — still thinks there’s a chance that if private money comes in, the Terasury will backstop it, or add some bucks of its own in some manner. Surprise, bailout still on!