- New York
Fourth-quarter profit tanked at CIT Group in New York, as the costs to dismiss former OneWest Bank executives, and losses tied to the sale of Brazilian businesses weighed on results.
February 2 - New York
CIT Group will pay about $60 million in severance to 14 executives who have been dismissed or left the company, as it continues to shuffle its executive lineup following its August acquisition of OneWest Bank.
December 9 -
Amid heartbreaking tales told by distressed homeowners and reverse mortgage holders, many community groups praised OneWest CEO Joseph Otting for spending time speaking to them and hearing their communities' concerns.
February 26
Feb. 26 marked one year since the Office of the Comptroller of the Currency and the Federal Reserve hosted a
Comptroller Thomas Curry drew applause earlier in the month when he
But, unfortunately, it does not appear that CIT plans to deliver an effective CRA plan in response to the OCC's charge. From our conversations with the bank, we have analyzed its current pending CRA program, and its new reinvestment programs total even less for California communities than CIT had pledged to do before last year's hearing.
A robust CRA plan is especially important in light of the both support CIT received from
CIT's peer banks have proven that strong CRA plans can be designed in partnership with stakeholders in order to meet the needs of the local communities where they do business. Community groups were so hopeful that new leadership at the bank would follow the example set by other banks that we agreed to hit "pause" on our campaign to hold the bank accountable to serving California communities, in order to allow CIT more time to develop a strong CRA plan.
But today we are left shaking our heads in disappointment with CIT's response. We have been in conversations with the bank since the start of the year. Those discussions now indicate that CIT will propose an approach that will result in reinvestment of less than 4% of deposits annually. It is disheartening that this is even less than the bank had proposed prior to the public hearing. The proposed commitment also represents a much smaller commitment than banks a fraction of CIT's size have already committed to make. More than six months after regulators' conditional approval, we are left to wonder if the pending CRA plan — should CIT not commit to do more — will satisfy the OCC's conditional approval requirements, especially since the plan represents a reduction in proposed annual CRA activity.
Notably, in the same period in which CIT has been planning to reduce community reinvestment, the bank has awarded huge compensation packages to departing executives. One such windfall is for John Thain, the chairman and chief executive set to retire at the end of March. The bank reportedly
Where is the soft landing for communities that suffered tens of thousands of foreclosures and negligible reinvestment at the hands of OneWest and now CIT? Should we be surprised that CIT Group executives receive millions while California communities are asked to be content with a CRA plan that would place the bank significantly below its peers in investments in affordable housing, small-business lending and philanthropy?
The OCC's conditional approval is only as good as CIT Group's compliance with it. If CIT Group is sincere about addressing concerns raised about the merger, we suggest that it not try to sell the community on a "less is more" plan, but rather commit to substantially more and to mean it. Communities have waited long enough.
Paulina Gonzalez is the executive director of the