CIT said regulators lifted cease and desist orders against Bank

April 20, 2011, 9: 37 am EDT by Laura Marcinek

April 20 (Bloomberg) - CIT Group Inc., the lender company led by John Thain, said that the Federal Deposit Insurance Corp. and the Department of Financial Institutions of Utah completed their cease and desist orders against the CIT Bank.

The commands which were jointly issued in July 2009, cited that the possibility of "dangerous or questionable" banking practices in the event that based in New York CIT Group, the parent company of Bank of ILC based in Salt Lake Cityhas experienced a deterioration of its finances, the FDIC said at the time.Restrictions preventing CIT extending credit or to engage in "operation covered," according to a company filing today with the regulators. CIT Bank is also prohibited to declare or pay dividends and to increase the amount of deposits by broker more than 5.53 billion occurred on July 16, 2009, according to the filing.We welcome this decision, which is another example of the progress we have made in CIT restructuring efforts, "Thain said today.CIT increased $3.25, or 8%, to $43.70 at 9 a.m. in New York trade. Shares fell 14 percent this year through yesterday.

-Editors: Steve Dickson, David Scheer

To contact the reporter on this story: Laura Marcinek in New York at lmarcinek3@bloomberg.net.

To contact the editor responsible for this story: David Scheer in dscheer@bloomberg.net.

View the original article here