CIT Group Incorporated

CIT Group to buy Pasadena lender OneWest Bank

CIT Group to buy Pasadena lender OneWest Bank

Pasadena's OneWest Bank, which rose from the ashes of failed high-risk home lender IndyMac Bank, agreed to be bought by commercial lender CIT Group Inc. in a $3.4-billion deal that would create the biggest bank based in Southern California.

The acquisition of OneWest, announced Tuesday, also would mark a big payday for billionaire investors who put up $1.5 billion five years ago to buy much of IndyMac from federal regulators. The investors have already shared in nearly $1.9 billion in dividends since then.

CIT Group, based in New York, agreed to pay $2 billion in cash and $1.4 billion in its shares to acquire OneWest and combine it with its own bank. The new lender,...

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