CIT loses $900 mln in Q4 as it exits bankruptcy

NEW YORK Mon Mar 1, 2010 5:47pm EST

A morning commuter walks past the CIT Group Inc. building in New York, November 2, 2009 file photo. REUTERS/Brendan McDermid

A morning commuter walks past the CIT Group Inc. building in New York, November 2, 2009 file photo.

Credit: Reuters/Brendan McDermid

NEW YORK (Reuters) - CIT Group Inc (CIT.N), the large U.S. commercial lender that filed for bankruptcy in November and emerged the following month, said on Monday it lost about $900 million in the fourth quarter and $4 billion in all of 2009.

The New York-based company said the losses exclude the impact of the reorganization and accounting adjustments.

It said the full-year results reflect a $692 million charge for goodwill and asset writedowns, an increased reserve for credit losses, and higher professional fees.

The $4 billion loss should be "essentially offset" by the impact of the reorganization, mainly because it reduced debt, as well as accounting adjustments, CIT said.

CIT said it lost $2.9 billion in 2008, including a $2.2 billion loss on the sale of its home lending business and a $468 million charge for goodwill and asset writedowns.

The company filed one of the five largest bankruptcies in U.S. history on November 1, 2009, and emerged on December 10.

Last month it installed John Thain, the former chief executive of Merrill Lynch & Co and NYSE Euronext NYX.N, as its own chief executive.

CIT announced its preliminary results in a U.S. Securities and Exchange Commission filing. It said it needs more time to complete its annual report and expects to file it by March 16, rather than meet the regular March 1 deadline.

Shares of CIT closed Monday up 12 cents at $36.55 on the New York Stock Exchange. The company released preliminary results after U.S. markets closed.

(Reporting by Jonathan Stempel; Editing by Richard Chang)

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