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Gasparino: John Thain Shopping CIT

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  • Description

    FBN's Charlie Gasparino on John Thain's efforts to sell CIT.

  • Duration 5:20
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This transcript is automatically generated

Thanks so much sir.

So -- -- hard to come by on Wall Street particularly if you decorate your office.

With 87000.

Dollar -- and spend 35000 dollars -- shareholder money on something called a commode on legs during the different it's a crisis for years ago.

But Wall Street today is buzzing that former Merrill Lynch CEO John Thain who else we would we be done about here is plotting his next -- it has nothing to do with his infamous.

Office redecorating Charlie Gasparino.

-- but what's really -- I remember when he broke that story.

Needle like me you actually know who John Thain is he's now -- the CEO of CIT -- small -- but back then.

When he spent those money on something that sounded like a toilet -- -- here thousand dollars commode on legs 35000 part of what Eric have a picture of -- -- went yeah.

All morning that he thought he was -- CEO of Merrill Lynch and then in a minute later broke that he was being fired he's now it's CIT group.

A small lending company list of the market -- and mid market companies.

Came out of bankruptcy in late 2009 hired -- 2010 -- been itching to grow the business having a problem growing it.

Here's what we -- sources close to matter to on the Fox Business Network.

That theme is now shopping CIT.

Looking to be acquired by a bigger bank would be an interest -- move because if -- if it does get acquired by a bigger bank will get guess what.

Dane he's itching -- run.

A big affirm that CIT and that would put him kind of in the catbird seat you know he's a very experienced CEO though you know people have real questions about some things he's done over over the years.

Including that offers -- -- we'll get into some of the other stuff.

It would put -- -- in positions to be when he wants to be Bob and I'm the CEO of a major bank today interestingly.

Sort of confluence of things going on.

And -- report for stifle Nicholas came out where they basically said Wells Fargo.

Would be a likely acquirer of CIT.

Problem that cause a lot of the buzzing but aside from that.

We do know niche that they you believe that -- automatic that you let me just make make the point and I'll get into it that -- -- shopping to something like CIT.

She's like Wells Fargo I don't think Wells Fargo do that if you know anything about -- strategy.

They're looking to do something in which mourn the asset management division I -- -- billion -- that manager.

You know I don't know what they get by by buying a made -- a sort of a and took a bank.

So CIT is a lending facility for for mid market companies are probably already have that but that's who we are right now he shopping whether -- -- you can't be I don't know whether he can sell it.

I will tell you this shares are up about 12% this year so there's obviously some some blood out there about about him trying to sell it.

He's had a very hard time trying to -- he tried to -- ING directs.

Bank and that fell through when that fell through I think that they'll do in March they sold at this I think -- one when that fell through.

You know it really is growth strategy to grow sort of -- organically fell apart and from Lansing strike -- right now you said as -- -- -- -- I don't know so.

I feel you're gonna say that's sort of prompted -- -- -- -- who might -- and if you know I I I don't know.

I mean it's it's it's -- this in the banking isn't really tough business right now right enhanced capital rules.

Bomb why would you buy CIT well I think you buy for relationships.

Right -- -- would be good fit but I can tell you that that management has said that they want to they wanna buy an asset manager dale wanna buy a mid mid market lender.

You know maybe maybe we should -- Jamie diamond.

Maybe what's it.

Because -- Jamie working with themed bear out this is this is the interest and -- -- I think there's a taped on this guy and you know he doesn't like me because -- I I covered him during -- financial -- that Merrill Lynch.

The guy that gave.

Did the word you know indecision and direct and poured and poured direction to the market -- new meaning he must -- said that Merrill Lynch was not did not need new capital.

About four times before they went out.

And -- and raise more capital very controversial guy.

And the and as you know Merrill Lynch had to be soldier and a financial crisis he initially was against that -- that was a dining Greg Fleming.

Who's his number two now the number two guy over -- mortgage -- that push and prod saint.

To sell the Bank of America or us -- gonna go out of business.

And when he was there.

He kept touting that he was going to be the heir apparent to Ken Lewis -- and the CEO.

Got Lewis mad finally it -- it was disclosed a Merrill Lynch lost in the fourth quarter and this got loose in trouble.

Fifteen billion dollars some astronomical amount of money was not disclose the shuttles before they approved the deal spray -- so controversial laughing and left -- -- ultimately but -- didn't leave until.

I got one -- shot down.

I wrote about his office the 87 -- 85000 dollar -- he spent one point two million dollars on his office it was decorated by the same guy.

That decorated the White House that's right -- name.

And you know he I think his wife your promise private entity event -- the White House and yes whatever like I was a fourteen and I want a 14100 dollar parchment paper waste biscuit.

So now Jimmy Cain was smoking pot in his office and I actually.

What would happen it would have been that was Jimmy Cayne who would have started a fire at -- -- But -- that's where we are right now he shopping.

They have not called me.

Back that's the that's shocking you're I don't that -- audio -- yet jumping did not take a shot at Paramount pregnant -- -- -- -- -- I think again which is out today.

Congratulations but -- -- face.

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