Reports Paulson's CIT/IndyMac Hook-Up Rumors are "Pure Nonsense"

Clusterstock is reporting that John Paulson is in no talks whatsoever to orchestrate a merger between CIT (NYSE: CIT) and IndyMac, citing a source close to the situation.

The source also said that as Indymac is a failed institution, it is controlled by the FDIC and as such, no talks can be going on without its approval. "It's pure nonsense."

This morning, the New York Post reported the hedge-fund powerhouse John Paulson is considering a plan to save troubled lender CIT Group (NYSE: CIT) through a merger with the leftovers of failed IndyMac Federal Bank.

Shares of CIT are up just 7% now after trading 17% higher earlier.

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