CIT Group

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CIT Taps Former Merrill Chief Thain as New CEO

In a move that unites two prominent casualties of the financial crisis, CIT Group Inc. (NYSE: CIT) ended a prolonged search by naming John Thain, the former chief of Merrill Lynch & Co., as its new chairman and chief executive officer.

Thain, who left Bank of America Corp. (NYSE: BAC) 13 months ago amid controversy over its takeover of Merrill, will have his hands full rebuilding CIT, an embattled commercial lender that nearly collapsed in 2009.

CIT still operates under restrictions that were imposed after receiving $2.3 billion in funding under terms of the Troubled Asset Relief Program (TARP).  Those measures include being banned from the commercial paper market, its traditional source of funding.

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Investment News Briefs

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Bondholders the Big Winners as CIT Files for Bankruptcy

CIT Group Inc. (NYSE: CIT) on Sunday filed for Chapter 11 bankruptcy protection. CIT's filing is the fifth largest bankruptcy in U.S. history, behind Lehman Brothers Holdings Inc. (OTC: LEHMQ), Washington Mutual Inc. (OTC: WAMUQ), WorldCom Inc., and General Motors Corp.

But unlike Lehman Bros. and Washington Mutual, which were completely broken apart and branches of their businesses sold off, CIT expects to wipe out $10 billion in unsecured debt and emerge from its bankruptcy with its core business intact.

"None of CIT's operating subsidiaries, including CIT bank, will be included in the filings," the company said in a statement. "As a result, all operating entities are expected to continue normal operations during the pendency cases."

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Investment News Briefs

With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world. More Insider Trading Arrests Coming; Icahn Offers CIT Bailout; Oil Pushes $80; Treasury Steps In To Support HFAs; N.Y. Times to Cut 100 Newsroom Jobs; Hasbro Shares Fall Amid Soft […]

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Investment News Briefs

With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world. Treasury Announces More PPIP Investors; Roubini: Market Due For Correction; BofA Planning Emergency CEO Appointment; Goldman Could Fetch $1 Billion From A CIT Bankruptcy; Mazda Raising Money for Hybrids; Nomura […]

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CIT Offers Debt Exchange, Draws Up Bankruptcy Plans

In what is being viewed as a last-ditch effort to avoid filing for protection from its creditors, commercial lender CIT Group Inc. (NYSE: CIT) is offering bondholders a debt exchange, while still preparing for a likely chapter 11 bankruptcy filing. CIT in July raised $3 billion from bondholders to keep afloat after it was denied […]

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Investment News Briefs

With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world. IMF Lowers Global Writedown Estimate; CIT Still Struggling; $1.6 Billion Hong Kong IPO for Wynn Macau; Wal-Mart, Kmart Gunning For Holiday Toy Sales; Toyota Announces Record Recall; BofA Exec Takes […]

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Investment News Briefs

With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world. Winters Out as JPMorgan Co-CEO; Walgreen Profits Beat Expectations; BNP Paribas Raising $6.3 Billion via Share Sale; China Approves GM Stake in Delphi; Possible CIT-Indy Mac Merger; Gannett Expects at […]

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