ADVFN - Advanced Financial Network.
HOME» NYSE » A » AXP Stock Price » AXP Stock News

American Express Share News

 American Express Co. Stock Price
AXP Stock Price
 American Express Co. Stock Chart
AXP Stock Chart
 American Express Co. Stock News
AXP Stock News
 American Express Co. Company Information
AXP Company Information
 American Express Co. Stock Trades
AXP Stock Trades

CIT Group Eyes Deposit Acquisition to Grow Bank Funding

By Andrew R. Johnson CIT Group Inc. (CIT) is eying potential acquisitions to make the commercial lender "more bank-like" as it continues efforts to shrink funding costs, Chief Executive John Thain said Thursday. Mr. Thain, who is leading CIT on a multiyear turnaround plan, said at the lender's first investor day since 2006 that the area "most interesting to us" is opportunity to acquire bank deposits. "That's really the place that we see the most interesting opportunities," Mr. Thain said, adding that his company "will continue to look at the ability to acquire deposits." Building a strong deposit base has been a central part of CIT's efforts to improve its lending profitability, which lags behind competitors such as Wells Fargo & Co. (WFC) that have huge deposit bases. CIT, which filed for bankruptcy in late 2009, traditionally relied on issuing debt to fund its loans and other financing, which are used by mostly small and mid-sized businesses for everything from office equipment and airplanes to mergers and acquisitions. Since then, CIT has moved several of its lending platforms from its holding company to its bank subsidiary, allowing it to tap deposits as a funding source. Last year, it launched an online consumer bank that offers certificates of deposit and savings accounts, taking on other specialty lenders that have embarked on similar strategies, including American Express Co. (AXP) and Discover Financial Services (DFS). General Electric Co. (GE), one of CIT's main rivals for commercial finance, is in the process of acquiring MetLife Inc.'s (MET) online banking business to build its own consumer-deposit platform. CIT's online bank has raised more than $1.5 billion in deposits since its debut last autumn, Mr. Thain said. CIT filed for Chapter 11 bankruptcy in November 2009 as it faced challenges in raising funds to make loans, while many borrowers drew down their lines of credit. Its filing wiped out $10 billion in debt and a $2.3 billion government bailout. The company exited bankruptcy the following month and has been led since February 2010 by Mr. Thain, a former Goldman Sachs Group Inc. (GS) executive who previously led Merrill Lynch and the New York Stock Exchange. In addition to growing CIT's deposits, Mr. Thain has been focused on restructuring the company's debt. It has paid down or refinanced $26 billion of debt during the last two years, bringing CIT's funding costs down by more than 200 basis points, he said. Among the next steps for CIT is to resolve a written agreement with the Federal Reserve Bank of New York that has prevented it from paying dividends and buying back shares. Mr. Thain has previously said CIT substantially met the requirements under the agreement. On Thursday, he reiterated those comments, saying CIT continues to wait for a response from the Fed. He didn't offer a time frame for when that might occur. CIT doesn't plan to return capital to investors this year, but expects to submit a plan to do so to the Fed for approval at the beginning of 2013, Mr. Thain said. CIT's shares were down 0.4% at $33.60 in recent trading. Its shares are down more than 3% this year. Write to Andrew R. Johnson at andrew.r.johnson@dowjones.com.

Stock News for American Express (AXP)
DateTimeHeadline
08/29/201421:10:16Bike-Sharing Rolls Into Suburban Workplaces
08/22/201416:01:11Credit-Card Comparison Sites Come Under Fire
08/14/201417:25:28Berkshire Hathaway Continued Investing in Media in Second Quarter
07/30/201409:45:11U.S. Hot Stocks: Hot Stocks to Watch
07/24/201406:07:25Edenred Sees Venezuela, Brazil Currency Depreciation Hurting...
05/22/201414:11:15Obama to Pitch Importance of Tourism at Baseball Hall of Fame
05/15/201417:16:53Berkshire Hathaway Takes Stake in Verizon -- Filing
05/03/201416:15:14Buffett Defends Coca-Cola Abstention at Berkshire Meeting...
04/17/201417:12:38MARKET SNAPSHOT: S&P 500's Weekly Gain Is Best Since July 2013
04/17/201413:58:36MARKET SNAPSHOT: U.S. Stocks Set For Weekly Gains
04/17/201410:16:19MARKET SNAPSHOT: U.S. Stocks Lower Amid Mixed Earnings
04/16/201417:14:51MARKET SNAPSHOT: U.S. Stocks Rally; S&P 500 Positive For The...
04/16/201417:12:11Correction to American Express Earnings Story
04/16/201417:10:07American Express Profit Rises on Higher Revenue
04/16/201417:01:54Capital One Earnings Rise -- 2nd Update
04/16/201416:40:51American Express Quarterly Profit Rises on Higher Revenue
04/13/201408:46:33MARKET SNAPSHOT: Google, Intel, IBM Outlooks To Trump Earnings...
04/10/201412:03:36Judge Dismisses Credit Card Case Against American Express, Citi...
04/07/201417:03:59MARKET SNAPSHOT: U.S. Stocks Fall; Nasdaq 3-day Loss Worst Since...
03/21/201418:51:16Federal Reserve Revises Stress-Test Results -- 2nd Update

American Express and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad