In 1984, CIT was sold to Manufacturers Hanover Trust. In 1989, Manufacturers Hanover Trust sold sixty percent of CIT to Dai-Ichi Kangyo Bank of Japan. As Dai-Ichi Kangyo Bank ran into troubles within its core operations, it sold off non-core assets, including CIT, which in 1997 was carved out as a separate company and re-listed on the New York Stock Exchange.
In 1999, CIT acquired Toronto-based Newcourt Credit Group Inc. for approximately US$4 billion to create one of the largest publicly-owned leasing companies. CIT over-paid for Newcourt, and merger integration troubles forced CIT to draw upon emergency credit facilities with several banks to avoid bankruptcy. As other funding sources dried up, CIT was forced to sell itself to Tyco International Ltd. in June 2001. CIT became the principal operating subsidiary of Tyco's Tyco Capital business. CIT's Livingston address was changed to 1 Tyco Drive.
Tyco ran into its own operating troubles and sold or spun-off non-core opeerations, including CIT. On July 8, 2002 Tyco completed its divestment of its Tyco Capital business through an initial public offering IPO, via the sale of 100% of the common shares in CIT Group Inc. As an independent public company, CIT changed its Livingston address to 1 CIT Drive from 1 Tyco Drive.
CIT moved its global headquarters back to New York City, opening a brand-new headquarters in 2006 across from the New York Public Library. Its headquarters were last in New York city in 1983. CIT retained its Livingston campus as its corporate headquarters.
On July 1, 2008, CIT Group announced that it will be selling its home lending division to Lone Star Funds for $1.5 billion in cash in addition to the $4.4 billion in debt the company currently holds. CIT will concentrate on its commercial pursuits due to the decline in housing and mortgage markets of the past year. They also plan to sell their manufactured housing portfolio Vanderbilt Mortgage and Finance Inc. for approximately $300 million, although it holds a value of $470 million.
In 2008, CIT Group became a bank holding company in order to qualify for, and ultimately receive $2.3 billion in Troubled Asset Relief Program (TARP) funds.
On July 13, 2009, Bloomberg TV reported that CIT was asking for FDIC loan guarantees.
On July 15, the common stock of CIT was halted on the NYSE during trading hours with "News Pending". At 6:03 p.m. a press release was issued on the company's website[page needed] stating that talks of a government bailout was unlikely. The company had been advised that "no appreciable likelihood of additional government support being provided over the near term."[citation needed] CIT announced that it believed it was unlikely that it would receive further funding from the federal government, and CIT Group came very close to declaring bankruptcy. It was rescued in a US$3 billion deal on 19 July 2009, via an agreement with the bondholders group, which included Pacific Investment Management Company (PIMCO) and some other top CIT holders.
On July 20, 2009, CIT Group escaped bankruptcy by securing a $3 billion loan from bondholders, and said it plans a comprehensive restructuring of its liabilities.
On September 30, 2009, in its continuing struggle to avoid banktruptcy, CIT Group was reported to be in negotiations with Citigroup Inc., Barclays Capital, and its bondholders to secure rescue financing to comply with its filing to find a plan “acceptable” to the majority of a bondholder steering committee that provided it with the emergency cash by Oct. 1.
On Sunday, 1 November 2009, CIT Group filed for Chapter 11 bankruptcy protection. It filed in the United States Bankruptcy Court for the Southern District of New York along with CIT Group Funding Company of Delaware LLC.