CIT Group Inc. is a financial holding company incorporated in Delaware and headquartered in Pasadena, CA. The company name is an abbreviation of the initial company name, C ommercial I nvestment T carat. It provides financing and leasing capital to customers in over 30 industries. CIT also operates CIT Bank.
The company is ranked 550 in the list of 1000 Fortune largest American companies and is on the list of the largest banks in the United States.
CIT filed for bankruptcy protection on November 1, 2009, and with the consent of the bondholders, emerged from bankruptcy 38 days later, on December 10, 2009.
Video CIT Group
Current operation
CIT operates two business segments:
Commercial banking - Provide loans, rentals and other financial services especially for small and medium enterprises in certain industries.
- Provide senior secured commercial real estate loans, including construction loans to experienced and strongly capitalized real estate developers.
- Provides factoring, secured factoring, and receivables management products to companies throughout the retail supply chain.
- Provide secure equipment and financing for companies in the railway industry.
Consumer banking
- Provide financial services including retail banking, mortgages, Small Business Administration loans.
- Operates CIT Bank, which owns a direct bank.
Maps CIT Group
History
On February 11, 1908, Henry Ittleson founded Commercial and Investment Companies in St. Petersburg. Louis, Missouri.
In 1915, the company moved its headquarters to New York City and renamed Commercial Investment Trust and left with the initials C.I.T. At that time, the company provided financing for wholesale suppliers and manufacturers of consumer goods. The company added auto financing to its product line in 1916, through an agreement with Studebaker, the first of its kind in the automotive industry. During World War I, CIT funded the creation of 150 submarine hunters. It also adds consumer radio financing through an agreement with Thomas Edison, Inc. During the Roaring 20s after the war, consumer spending increased dramatically and CIT prospered in consumer appliances, furniture, and auto finance groups. In 1924, CIT was incorporated in Delaware and listed on the New York Stock Exchange. CIT entered the field of factoring in 1928 and expanded its operations to Europe in 1929.
With an increasing international tension before World War II, CIT shut down its operations in Germany in 1934. Arthur O. Dietz replaced Ittleson as company president in 1939. During the war, CIT offered bonus bonuses, life insurance, and guaranteed jobs back if they served in the United States Armed Forces. Between 1947 and 1950, the company's net income rose from $ 7.3 million to $ 30.8 million. Ittleson died at the age of 77 on October 27, 1948.
The company moved into a new building at 650 Madison Avenue in Manhattan in 1957. In 1960, Walter Lundell replaced Dietz as president of the company. Five years later, in 1959, the company spent $ 100 billion ($ 839 billion in the last term) in the volume of financing since its inception. The racial upheaval of the Vietnam War in the 1960s resulted in CIT changing its business. In 1969, CIT entered the business of personal and home equity loans as well as leasing and financing the left car. In 1979, strict banking rules forced CIT to sell its bank, National Bank of North America. CIT was acquired by RCA Corporation in 1980. RCA soon sold four manufacturing companies CIT: Picker X-Ray, Inc., Gibson Greeting Cards, Inc., All-Steel, Inc. (office furniture), and Raco, Inc. (wall) boxes for electrical switches and outlets.) The Madison Avenue building was sold in 1982 when the company moved into a newly built headquarters facility in Livingston, New Jersey in 1983.
In 1984, CIT was sold to the Hanover Trust Manufacturers. In 1989, Hanover Trust Manufacturer sold 60% CIT to Dai-Ichi Kangyo Bank of Japan.
In 1991, the company acquired Fidelcor Business Credit Corporation, which increased its services to small businesses. In 1992, CIT opened 15 new offices in 7 states.
In 1997, the company became a public company through an initial public offering that generated $ 850 million.
On November 15, 1999, CIT acquired Toronto-based Newcourt Credit Group in a $ 4.2 billion transaction, which created one of the largest publicly owned leasing companies. In 2000, CIT announced record revenues of $ 611.6 million, up 57.1% from a year earlier, largely due to the acquisition of Newcourt the previous year.
In 2001, Tyco acquired CIT for $ 9.2 billion. CIT was renamed to Tyco Capital.
Tyco has operational problems and sells or separates non-core operations, including CIT. On July 8, 2002, Tyco completed Tyco Capital's business divestment through an initial public offering, through the sale of 100% common shares at CIT Group Inc.
In 2006, CIT moved its global headquarters back to New York City, opening a new headquarters across from the New York Public Library. CIT maintains the Livingston campus as its corporate headquarters.
Under the leadership of CEO Jeff Peek, assets at CIT jumped 77% from 2004 to the end of 2007 because it acquired the company in education loans and subprime mortgages. The acquisition turned out to be a catastrophe for the company and in the next eight quarters, CIT reported a loss of more than $ 3 billion.
On July 1, 2008, CIT Group announced that it would sell its $ 1.5 billion home loan division to Lone Star Funds in cash and assuming $ 4.4 billion in debt and announced that it would sell its manufactured housing loan portfolio, with a nominal value of $ 470 million in loans, for Vanderbilt Mortgage and Finance for approximately $ 300 million.
In 2008, CIT became the parent company of the bank to receive $ 2.3 billion in Troubled Help funds (TARP).
On July 15, 2009, CIT's request for a Federal Deposit Insurance Corporation loan guarantee was rejected. At 6:03 pm, the company issued a press release stating that talks on a government bailout were unlikely and that the company had been advised that there was "no possibility of additional additional government support given in the near future" and that it is very close to declaring bankruptcy.
On July 19, 2009, the company received a $ 3 billion bailout through an agreement with a group of bondholders, which includes Pacific Investment Management Company (PIMCO) and other large bondholders. CIT said it planned a comprehensive restructuring of its obligations.
Effective July 24, 2009, CIT was removed from the S & amp; P 500.
On Sunday, November 1, 2009, CIT Group filed for bankruptcy protection under Chapter 11, Title 11, United States Code.
On December 10, 2009, CIT fulfilled all the necessary requirements to complete the reorganized Plan that has been packaged, including the cancellation of existing debt and shares and the issuance of new debt and publicly traded shares.
As part of the reorganization plan, CIT appointed seven new independent directors. On 19 January 2010, Peter J. Tobin, a member of the board of directors, was appointed as the temporary Chief Executive Officer, replacing Jeff Peek, who resigned effective January 15, 2010. On February 8, 2010, former Merrill Lynch CEO John Thain was hired as chairman and Chief executive officer.
On July 22, 2014, CIT Group announced an agreement to acquire OneWest Bank for $ 3.4 billion in cash and stock. The Reinvestment Coalition of California is concerned about the possibility of a FDIC loss-sharing agreement with OneWest being transferred to CIT Group and bank growth that is considered too large to fail and therefore filing a Freedom of Information Act request in October 2014 seeking information on the amount of money paid to OneWest investor under the agreement share losses and what conversations the FDIC staff has with the leadership of OneWest Bank and CIT Group. On July 21, 2015, the Office of Financial Currency Supervisors and the Federal Reserve approved the acquisition of CIT Group against OneWest Bank. This acquisition closes on August 3, 2015.
Effective November 1, 2015, CEO John Thain resigned and was replaced by Ellen Alemany, a member of the board of directors.
On February 19, 2016, Thain resigned as chairman and Ellen Alemany became chairman of the CEO.
In April 2017, the company sold its aircraft rental business to Avolon for $ 10.38 billion.
In October 2017, the company sold Financial Freedom, which was acquired as part of the acquisition of OneWest Bank, and the reverse mortgage portfolio.
References
External links
Source of the article : Wikipedia
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