CIT Group dropped 13.9% since July 1st. CIT Group ended the quarter trading at 39.61 which was right above the stop loss. This is mainly attributable to the stock market sell off in late August and the continued downward trend of the financial sector in mid-September. CIT Group was heavily depending on an interest rate hike due to them growing the commercial banking side of their business. The big news for CIT is that they acquired OneWest Bank in the third quarter in early August and the acquisition was complete on August 8th. CIT Group won lead lefts for middle market capital raising plans. CIT Group also formed a joint venture for commercial lending with TPG Capital. This was done to grow the commercial lending franchise of CIT.
Even though the steep drop of CIT Group this quarter I still find it a very strong company. They are releasing earnings on November Third pre-market open. CIT Group is looking to sell off CIT China and CIT Canada and also sell or look into other options for the 10 billion dollar airline financing wing. Once earnings are released and more solid details are released about the company the investment thesis needs to be revisited and the model to be updated to see if the company still fits the investment horizon.