CIT has strengthened its
capital-raising plan as it looks to become a bank holding company
in order to access federal lending programmes and ease the pain of
losses suffered during 2008.
At time of going to press it was
looking to raise $300 million (€214 million) from the sale of its
common stock, and had also raised around $400 million from the sale
of outstanding notes.
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It has withdrawn its application to
become a financial holding company following discussions with the
Federal Reserve.
This means it will have to discontinue
its insurance operations, although this is not expected to hit
CIT’s earnings.
Analyst Keefe, Bruyette & Woods
mid last month said it had lowered CIT’s price target from $12 to
$10.
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