VOL. 123 | NO. 224 | Friday, November 14, 2008
CIT Group Applies to Become Bank Holding Company
NEW YORK (AP) – CIT Group is applying to the Federal Reserve to become a bank holding company.
CIT, a commercial finance company, is also applying to receive funds as part of the government's $700 billion bank rescue program, contingent upon being granted bank holding company status by the Fed.
If it receives approval to change its status, CIT Group would join a growing list of financial firms, including Goldman Sachs, Morgan Stanley and American Express, in becoming a bank holding company, which is the structure of traditional commercial banks.
The change would allow New York-based CIT Group Inc. to create a large deposit base and provide it access to more financing programs from the government, including the $700 billion bailout package.
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