CIT Group sinks amid liquidity talks

NEW YORK (Reuters) - Shares of CIT Group Inc CIT.N dropped more than 16 percent to $1.25 before the bell on Monday after the commercial U.S. lender, struggling to finance its business, said late on Sunday it remained in discussions with regulators on measures to improve liquidity.

Separately, the Wall Street Journal reported over the weekend that the company had hired a top law firm to explore a possible bankruptcy filing.

(Reporting by Ellis Mnyandu; Editing by Theodore d'Afflisio)