CIT Group Freed from Fed Order

The Federal Reserve Board has terminated an enforcement action with CIT Group (CIT).

The termination of the August 2009 written agreement is the latest sign of the New York company's recovery from its bankruptcy. The agreement had required the $35 billion-asset company to submit plans for corporate government and risk management, review its loan-loss methodology and seek the Fed's approval before taking on debt or paying dividends.

Since filing for bankruptcy protection in November 2009, CIT Group has staged a recovery under Chief Executive John Thain. It had a Tier 1 capital ratio of 16.4% on March 31, and has been seeking opportunities to invest its cash stockpile. It bought $1.2 billion of commercial loans from Flagstar Bancorp (FBC) in January.

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