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
01/27/201520:22:43American Express to Start Doing Business in Cuba
01/22/201509:36:48MARKET SNAPSHOT: U.S. Stocks: Futures Climb As ECB Announces...
01/22/201508:14:31MARKET SNAPSHOT: U.S. Stocks: Futures Rise Ahead Of ECB Meeting
01/22/201506:29:58MARKET SNAPSHOT: U.S. Stocks: Futures Inch Up Ahead Of ECB Meeting;...
01/21/201521:30:08American Express Earnings Rise As Cardmember Spending Grows...
01/21/201520:13:32American Express Earnings Rise As Cardmember Spending Grows...
01/21/201517:31:50American Express Earnings Rise As Cardmember Spending Grows...
01/21/201517:09:34American Express Earnings Rise As Cardmember Spending Grows...
01/20/201514:20:34American Express to Offer Insight on Spending Trends
01/20/201514:00:33American Express to Offer Insight on Spending Trends -- Earnings...
01/19/201503:06:06MARKET SNAPSHOT: Earnings, ECB Highlight Holiday-shortened Week
01/13/201520:15:30Workers Get Help Climbing the Corporate Ladder
12/10/201413:55:14American Express CEO Pleased With Holiday Spending Trends
11/17/201416:15:08Warby Parker Adds Storefronts To Its Sales Strategy
11/08/201420:37:37Credit-Card Deals for Service Members
11/06/201413:20:39450 Credit Cards: Should You Pay for Premium Plastic?
10/29/201413:24:54China Expected to Open Domestic Bank-Card Clearing to Foreign...
10/27/201411:48:27U.S. Stock Futures Lower
10/16/201409:44:37U.S. Hot Stocks: Hot Stocks to Watch
10/15/201417:05:13MARKET SNAPSHOT: U.S. Stocks Cut Losses In Harrowing, Volatile...

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