CIT Group Inc. has filed for Chapter 11 bankruptcy protection, a potential blow to the thousands of small and midsize businesses that rely on the company for loans to keep their operations afloat. CIT made its filing in New York bankruptcy court Sunday, after teetering on the brink of collapse for months. CIT said it was hoping to make the trip through bankruptcy reorganization a speedy one, given that the majority of its bondholders have approved a prepackaged reorganization plan that will reduce total debt by $10 billion while allowing the company to continue to do business. CIT's move will wipe out current holders of its common and preferred stock, likely meaning the U.S. government will lose the $2.3 billion it sunk into CIT last year to prop up the ailing company. The Chapter 11 filing will be one of the biggest in U.S. corporate history.

Bank of New York Mellon said that as of Jan. 1, it will no longer participate in the Federal Deposit Insurance Corp.'s program that offers unlimited insurance coverage on non-interest bearing accounts of more than $250,000. The program, which was initiated last year in the wake of the financial industry meltdown, was extended through June 30, 2010. The coverage applies to the types of non-interest bearing accounts that small businesses tend to use. Mellon's decision not to participate, and pay the related premiums, "reflects our strong financial position," said Chief Financial Officer Thomas P. Gibbons.

Eureka Financial Corp. said it earned $171,000, or 14 cents per share, in its fiscal fourth quarter compared with a loss of $7.7 million, or $11.88 a share, in the September quarter last year. For the year ended Sept. 30, Eureka earned $3.4 million, or $2.69 per share, vs. a loss of $7.2 million, or $5.70, in fiscal 2008. The most recent fiscal year includes a deferred tax benefit of $2.6 million, recorded in the fiscal first quarter.

Pilots for Southwest Airlines have approved a five-year labor contract after narrowly rejecting another proposal in June. The union said the vote for ratification was about 87 percent, with about 93 percent of eligible pilots casting a ballot. The new contract includes pay raises, increases in retirement contributions and more job protection, according to the union. The airline and the Southwest Airlines Pilots' Association union and the airline have been in negotiations since their contract became open for change in September 2006.

Kennametal named Martha A. Bailey, vice president of finance and corporate controller, effective Dec. 1. She succeeds Wayne D. Moser, who becomes vice president, global strategic initiatives, effective Dec. 1. ... Black & Decker Corp. shares jumped more than 20 percent in extended trading yesterday after rival Stanley Works said it would pay $4.5 billion to buy the company in an all-stock deal. Under the terms of the deal, Black & Decker shareholders will receive 1.275 shares of Stanley for each share they own of Black & Decker. That represents a 22.1 percent premium to Black & Decker's closing price Friday.

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