CIT Group Inc. (CIT, Financial) filed Quarterly Report for the period ended 2009-06-30.
CIT Group Inc. is a leading commercial and consumer finance company provides clients with financing and leasing products and advisory services. Cit group inc. has a market cap of $528.9 million; its shares were traded at around $1.36 with and P/S ratio of 0.1. Cit group inc. had an annual average earning growth of 27.2% over the past 5 years.
Under regulatory capital adequacy guidelines, the Company and its principal banking subsidiary, CIT Bank, are required to meet requirements that involve both qualitative and quantitative measures of assets, liabilities and certain off-balance sheet items. When we became a bank holding company, we agreed with the Reserve Bank to maintain Total Capital of 13% for the Company and our regulatory capital exceeded the agreed upon levels. Further, we agreed with the FDIC to maintain a leverage capital ratio of 15% for the Bank and the Banks regulatory capital exceeded the agreed upon levels. Although CIT Bank continues to maintain regulatory capital on a stand-alone basis at or above the levels agreed to with regulators, losses during the first and second quarter of 2009 have reduced the Companys level of Total Capital below the 13% threshold that the Company agreed to when it became a bank holding company, and continued losses in future quarters may further reduce the Companys Total Capital. We have no assurances that we will be able to raise our regulatory capital to satisfactory levels based on the current level of performance of our businesses. Failure to meet and maintain the appropriate capital levels would adversely affect the Companys status as a bank holding company, have a material adverse effect on the Companys financial condition and results of operations, and subject the Company to a variety of enforcement actions, as well as certain restrictions on its business. In addition to the requirement to be well-capitalized, CIT and CIT Bank are subject to regulatory guidelines that involve qualitative judgments by regulators about the entities status as well-managed and the entities compliance with Community Reinvestment Act obligations, and failure to meet those standards may have a material adverse effect on our business.
Read the The complete ReportCIT is in the portfolios of Bill Miller of Legg Mason Value Trust, Third Avenue Management, Edward Lampert of ESL Investments, Charles Brandes of Brandes Investment, Charles Brandes of Brandes Investment, Martin Whitman of Third Avenue Value Fund, David Williams of Columbia Value and Restructuring Fund, Charles Brandes of Brandes Investment, David Dreman of Dreman Value Management.
CIT Group Inc. is a leading commercial and consumer finance company provides clients with financing and leasing products and advisory services. Cit group inc. has a market cap of $528.9 million; its shares were traded at around $1.36 with and P/S ratio of 0.1. Cit group inc. had an annual average earning growth of 27.2% over the past 5 years.
Highlight of Business Operations:
At June 30, 2009, the Company had a remaining principal balance of $60 million (of an initial investment of $600 million) invested in the Reserve Primary Fund (the Reserve Fund), a money market fund. The Reserve Funds net asset value fell below its stated value of $1.00 and the Reserve Fund currently is in orderly liquidation under the supervision of the Securities and Exchange Commission (SEC). In September 2008, the Company requested redemption, and received confirmation with respect to a 97% payout on a portion of the investment. As a result, the Company accrued a pretax charge of $18 million in the third quarter of 2008 representing the Companys estimate of loss based on the 97% partial payout confirmation.Under regulatory capital adequacy guidelines, the Company and its principal banking subsidiary, CIT Bank, are required to meet requirements that involve both qualitative and quantitative measures of assets, liabilities and certain off-balance sheet items. When we became a bank holding company, we agreed with the Reserve Bank to maintain Total Capital of 13% for the Company and our regulatory capital exceeded the agreed upon levels. Further, we agreed with the FDIC to maintain a leverage capital ratio of 15% for the Bank and the Banks regulatory capital exceeded the agreed upon levels. Although CIT Bank continues to maintain regulatory capital on a stand-alone basis at or above the levels agreed to with regulators, losses during the first and second quarter of 2009 have reduced the Companys level of Total Capital below the 13% threshold that the Company agreed to when it became a bank holding company, and continued losses in future quarters may further reduce the Companys Total Capital. We have no assurances that we will be able to raise our regulatory capital to satisfactory levels based on the current level of performance of our businesses. Failure to meet and maintain the appropriate capital levels would adversely affect the Companys status as a bank holding company, have a material adverse effect on the Companys financial condition and results of operations, and subject the Company to a variety of enforcement actions, as well as certain restrictions on its business. In addition to the requirement to be well-capitalized, CIT and CIT Bank are subject to regulatory guidelines that involve qualitative judgments by regulators about the entities status as well-managed and the entities compliance with Community Reinvestment Act obligations, and failure to meet those standards may have a material adverse effect on our business.
Read the The complete ReportCIT is in the portfolios of Bill Miller of Legg Mason Value Trust, Third Avenue Management, Edward Lampert of ESL Investments, Charles Brandes of Brandes Investment, Charles Brandes of Brandes Investment, Martin Whitman of Third Avenue Value Fund, David Williams of Columbia Value and Restructuring Fund, Charles Brandes of Brandes Investment, David Dreman of Dreman Value Management.
