Nov. 4 (Bloomberg) -- CIT Group Inc., the largest U.S. independent commercial lender, rose 24 percent in New York on speculation the firm may receive an equity investment from the U.S. Treasury.

The lender rose $1.08 to $5.60 at 9:38 a.m. in New York Stock Exchange composite trading after the Wall Street Journal reported that CIT may be among companies that qualify for federal funds under an expanded rescue plan. The newspaper cited people familiar with the matter, without naming them.

The Treasury is purchasing stakes in federally regulated banks under the $700 billion rescue package approved in September to help lenders shore up capital. Treasury officials see signs the cash injections are working, prompting them to consider expanding the plan to include bond insurers and specialty finance firms such as CIT and General Electric Co.'s GE Capital, the Journal said.

CIT has lost about three-quarters of its market value this year and has reported losses in six consecutive quarters. Chief Executive Officer Jeffrey Peek is making fewer loans, tightening lending standards and raising borrowing costs amid the worldwide credit crisis that has the New York-based lender seeking new sources of capital to fund loans.

CIT spokesman Curt Ritter didn't return a call seeking comment.

To contact the reporter on this story: Erik Holm in New York at eholm2@bloomberg.net.

Last Updated: November 4, 2008 10:17 EST