CIT, the troubled US lender, on Thursday agreed with the Federal Reserve Bank of New York, its primary regulator, to give the Fed detailed oversight of its restructuring plans and veto power over dividend payments and other shareholder-friendly activity. The agreement came as CIT said it had introduced a “poison pill” to discourage investors from buying more than 5% of its shares and deter large shareholders from raising their stakes, in an effort to protect tax benefits from the company’s losses.

This entry was posted by Gwen Robinson on Friday, August 14th, 2009 at 5:09 and is filed under Capital markets. Tagged with CIT, Federal Reserve Bank of New York. Edit this entry.