Tuesday, July 14, 2009

Report: CIT Aid Package "working on details"

by Calculated Risk on 7/14/2009 08:32:00 PM

UPDATE: From the WSJ: CIT, Regulators Negotiate Details of Multipart Aid Package

CIT Group Inc. and federal regulators are working out details of an aid package ...

Under the plan regulators would allow CIT to transfer assets from its holding company to its bank in Utah; the Federal Reserve would let CIT pledge some of those assets at its discount window and the company would take steps to refinance some of its existing debt. ...

One likely concern for regulators is how CIT can fund a steep rise in assets at its Utah bank. Part of the company's strategy is to aggressively seek out deposits through brokers ...
The deal is not done and the FDIC can't be happy with a high level of brokered deposits. Another BFF candidate.