CIT agrees to submit survival plans to Fed

08/14/2009 | Wall Street Journal, The

CIT Group said it agreed to send the Federal Reserve a plan for maintaining sufficient capital, due in 15 days, as well as ideas for improving its financial position, due in 75 days. The Fed will have a say in CIT's debt and stock purchases and dividend payments. "It sounds like there isn't enough progress on the company's restructuring," said Scott Peltz, managing director of restructuring at RSM McGladrey. "The Fed is effectively saying that it doesn't believe the company is going in the right direction and it either has to get on track or take more definitive action, which would be bankruptcy."

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Wall Street Journal, The