US commercial lending and leasing service company CIT announced a series of strategic initiatives that are designed to advance the company’s transition to a US commercial bank.
The company said that it will explore strategic alternatives for its $10bn commercial air business, and sell its CIT Canada and CIT China businesses.
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John A. Thain, chairman and chief executive officer at CIT said: "Over the past five years we have made significant progress in transforming CIT.
"Following the completion of our OneWest Bank acquisition, we have decided to explore the strategic alternatives for our Commercial Air business and to sell our non-transportation-related businesses in Canada and China."
"These strategic initiatives will position CIT for long-term success by further simplifying our bank-centric business model as we focus on meeting the financing needs of our U.S. small business and middle market customers. We believe these decisions will increase shareholder value."
The company has also announced a senior management succession plan. Thain will retire -effective March 31, 2016 – and will continue to serve as chairman of the board of directors, and current CIT board member Ellen Alemany will be promoted to the chief executive officer role. IT corporate controller Carol Hayles has been appointed as chief financial officer, replacing Scott Parker who stepped down.
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By GlobalDataJohn Ryan, CIT lead director, speaking on behalf of the board of directors, said: "John has been a pivotal leader during one of the most challenging times in CIT’s more than 100 year history. Under his leadership he has overseen the successful corporate and financial restructuring of CIT.
"Since taking the helm in 2010, he returned CIT to profitability; rebuilt its management team; eliminated or refinanced approximately $31 billion of high-cost debt; oversaw the termination of the Company’s Written Agreement with the Federal Reserve; returned more than $1.7 billion to shareholders; established a premier Internet Bank, and completed the acquisition of Direct Capital and OneWest Bank. On behalf of the Board, employees and shareholders we extend our gratitude to John for his success and commitment to CIT."
