Business and labor at a glance
CIT group to sell leasing firm
NEW YORK – CIT Group Inc. said Thursday it is selling its commercial aircraft-leasing business to a subsidiary of China’s Bohai Capital Holding Co. for $10 billion.
Shares of CIT rose almost 8 percent in extended trading after the sale was announced.
The deal is expected to close by the end of the first quarter of 2017 if it wins regulatory approval in the U.S. and China.
New York-based CIT, a financial-services holding company, said the sale to Bohai’s Avolon Holdings would simplify its business and improve its balance sheet.
The company said it got a “non-objection” from the Federal Reserve Bank of New York for a capital plan that is subject to closing the sale. The plan authorizes CIT to return nearly $3 billion in stock to shareholders from proceeds of the sale, it said.
Public pensions underfunded
A new report finds that state-run pension systems for public employees are underfunded by $1.2 trillion.
Moody’s Investors Services says the gap is expected to widen in the years ahead, partly because the funds’ annual investment returns are running well below expectations.
The report released Thursday compiled pension data for the end of the 2015 fiscal years in most states. It is among the first to tally the funding gap under new accounting rules intended to give a more accurate picture of the problem.
Local financial stocks mixed
Local bank stocks were mixed after trading Thursday. After jumping 50 cents Wednesday, First Niles Financial stood pat to close at $11 per share. Cortland Bancorp lost 20 cents, closing at $16.30 per share in trading Thursday.
Staff, wire reports