COMPANIES CIT, the troubled US small business lender, on Thursday made an agreement with the Federal Reserve Bank of New York, its primary regulator, giving 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” that discourages investors from buying more than 5 per cent of its shares and deters large shareholders from raising their stakes, in an effort to protect tax benefits from the company’s losses.
