They have 65 Billion in debt, they have 3 billion in book value,
it seems they are wildly leveraged, and all this bridge loan is doing is
letting them wind up.

Book value is net.. That means that CIT has roughly 65B in debt and 68B in assets(from your numbers).. leveraged 22:1.. (ouch). No goodwill that I could see on a cursory look.. meaning that all assets are probably tangible.

That said, a 10.5% rate on a short term loan is quite painful.