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Regulators gave conditional approval for CIT Group's deal to buy OneWest Bank, paving the way for an institution that would be deemed systemically important, with $70 billion in combined assets.
July 21 -
The California Reinvestment Coalition has called for a federal investigation into the foreclosure policies of OneWest Bank in minority neighborhoods.
June 9 -
Two activist groups are urging the Fed and OCC to investigate whether OneWest used donations and other sweeteners to buy community support for its sale to CIT.
March 6
CIT Group in New York reported lower second-quarter profit, as higher expenses and a drop in fee income offset loan growth. The sale of a student-loan business last year partly skewed the results.
The $46.7 billion-asset CIT said its
CIT last year
Noninterest income, the largest part of CIT's business, fell 3% to $595.2 million. Rental income on operating leases rose 2% to $531.7 million. However, last year's second quarter included a one-time boost of $23.5 million. Additionally, CIT swung to a $5 million loss on on derivatives and foreign currency exchange, from an $8.3 million gain.
Net interest income fell 61% to $18.6 million. Financing and leasing assets in two divisions Transportation & International Finance and North American Commercial Finance, rose 4%.
Noninterest expense rose 2% to $442.3 million on an increase in the depreciation on operating lease equipment, as well as higher salaries and employee-benefit costs, merger-related expenses, professional fees and technology expenses.
CIT expects to close its pending acquisition of the $22 billion-asset OneWest Bank on Monday. CIT
