CIT Group's (CIT) recent announcement that its bank unit plans to purchase $785 million of outstanding commercial loans from Flagstar Bancorp (FBC) drew positive reviews from analysts who want the company to find productive uses for its large pile of cash.

The specialty lender said last week that it would pay $779 million — or slightly under book value — for the portfolio, which mainly consists of asset-based loans, equipment leases and commercial real estate loans. It would be CIT's second portfolio acquisition in a year and its largest deal since the company emerged from bankruptcy in early 2010.

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