CIT Said to Benefit from Loss Coverage in OneWest Bank Deal
The LA Times reported CIT stands to collect more than $1.4 billion from federal regulators to cover future losses if its purchase of OneWest Bank be approved.
The LA Times said news of the loss coverage has enraged the California Reinvestment Coalition, a public advocacy group, as one more major government subsidy in a deal that also is enriching billionaires and top OneWest managers.
The LA Times notes that particularly galling to the coalition is that CIT never repaid $2.3 billion in taxpayer bailout funds during the Great Recession as a result of its bankruptcy.
To view the full LA Times report, click here.