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Improvements In CIT Group's Financial Health

Sunday, February 26, 2012 - 5:29 AMCIT Bank
You might be interested in the health of CIT Group if you have accounts at its new internet bank, CIT Bank. According to this Wall Street Journal article, CIT's financial health continues to improve:
CIT (CIT) filed for bankruptcy protection in 2009 after an ill-advised move into subprime lending, and emerged from bankruptcy court several months later. Today, it has a strong capital position. It is working to pay off high-cost debt and lower its cost of capital.

Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Sunday, February 26, 2012 - 11:55 PM
In the first post on CIT Bank, in Oct. 2011, I spoke about CIT Group's bankruptcy and reorganization, from the viewpoint of a CIT Group bondholder.  In my comments then, my original bond had been split into 5 bonds with maturities spread from 2013 to 2017, but two had already been called. Since then, one more was called, and the remaining two are scheduled to be called in March 2012. So, it seems that CIT Group's financial health really has improved. The contrast between CIT Group, whose bankruptcy did NOT involve government intervention, and General Motors (whose stock price would have to nearly double in order to pay off the government) is quite interesting.
WilWil242 posts since
Feb 26, 2010
Rep Points: 1,285