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Breakingviews: John Thain’s SIFI-ness

Tuesday, July 22, 2014 - 03:03

With CIT’s purchase of OneWest, the lender run by the former Goldman Sachs and Merrill Lynch boss just barely crosses the threshold into the systemically important club.

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John -- is once again systemically important. His company CIT had just bought one West Bank in the West Coast obviously for 3.4 billion Antony. It's his return to systemically important wall's final -- and it's it's been five and a half years since. He unceremoniously left -- knuckles but not blaming him pool and on the mound and particularly. Could that it's not even a job in the final here. But of course he got in trouble for his fifth space much on his office and -- rights unceremoniously from BankAmerica knowledge plus there was that -- about the bonuses absolutely hey happy about it. -- -- which -- also run by another former -- -- Jeff peek before it went bankrupt also in the crisis. Comes out thing comes in has taken -- right. It's really schooled by -- by his standards for any any 44 billion in assets at the mine and this is John Thain was CFO. Goldman Sachs on top partner Goldman Sachs laughter on the New York Stock Exchange turn you're next -- then went to run Maryland is huge trajectory any kind of dropped him off the radar screen a bit with CIT. Now cities kind of back in the frame because why they systemically in well -- at that level that the Fed has its fifty billion of assets is what you become -- people know what means. Actually out of it doesn't mean huge amounts he's kind of it's really mini city exactly. Yes sixty light or the back will now have Steve -- the -- stress tests every -- We'll be will be -- more effectively at least that's highly by regulators but it's not as if he's getting the size of his own employees and -- 860 billion of assets to write them is going to be sixty -- -- he's not -- release significant meaningful now there -- his old -- at Goldman Sachs were part of -- part of the affair up that they're -- evidence they expect one west was the old Indy and that's right. Is the old agreement which went bust on the first big men is to get votes in 2009 that's it like an actual bank run apple incidents where at least we this'll be -- online and again in that -- misses gets in the mind that 2009 and investors. A lot of -- guys in this sect. The guy running the bank statement nation. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Absolutely so I think old villains come on they've helped -- thing get back -- is that people that in its annuity here. It's still a relatively last question is is that the deal for yet to. I think it's great -- that -- -- -- funding costs. Day increase that deposit base which is a good thing as well adults it's a great deal for the investors he pulled it. The people don't bomb west they've made attuned to 2% profit including dividends they pay it not that okay thank you Nancy we'll be back more britney's tomorrow.

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Breakingviews: John Thain’s SIFI-ness

Tuesday, July 22, 2014 - 03:03