I'd like to now turn the call over to John Thain.John Thain Thank you, Ken. Good morning, everyone. Thanks for getting on the call. I'm going to make a few introductory comments and then turn the call over to Scott Parker, our new Chief Financial Officer. Scott joins us from Cerberus but he spent most of his career at GE Capital in many of the same lines of businesses that CIT is in. As we said in our press release, we are continuing to deliver on the priorities that we discussed in the first quarter. First, we are substantially completed in building out our senior management team, many of which are in the room with me today, this morning. But just to go through, Carol Hayles, our new Controller, is here. Lisa Polsky, our Chief Risk Officer; Rob Rowe, our Chief Credit Officer; Mike Roemer, our Chief Auditor; Nelson Chai Head of Strategy and Chief Administrative Officer; Lisa Zonino, our new HR Head; and Jeff Barloes [ph] (06:49.9), our new Chief Regulatory Officer. And then we have four hires that are in the set approval process. And when those two get done, we will have completed filling out our senior management team. In addition, later this morning, we're going to put out a press release announcing that David Moffett is joining our Board of Directors. David has extensive banking experience, and so that will be a very positive addition to our Board, and we'll put out a press release later this morning. Second, in terms of priorities, is we are continuing to pay down our high cost debt, and we're also continuing to access the capital markets for lower-cost funding. In the second quarter, we raised about $800 million in the capital markets. And continuing on this trend, we will begin discussions this week to refinance and repay the remaining $4 billion of first lien debt. I would expect us subject to, of course, to market conditions, to pay down about $1 billion of the first lien debt and then to begin the process of refinancing with a new secured term loan, the other $3 billion.
We are also continuing the process, and you saw this in the second quarter, of both reviewing and optimizing our portfolio. We did close the sale of our Australia and New Zealand vendor business. We also sold our half of our CIBC joint venture in Canada. And then we continued the process of selling loans. We've sold an excess of $500 million of Corporate Finance loans, and we also sold about $600 million of Student Loans.We are making progress on our written agreement with the Fed. It helps a lot to have all of our people in place now, so we can deal with a lot of the issues that the Fed has raised, particularly on the risk management front, and so that it is progressing. We are also focused very much on expenses. As our assets are shrinking, our ratio of expenses to net earning assets is going up. We are focused on that, although because of our need to invest in risk management, in compliance and in systems, that ratio will be an issue for us, at least for a little while. But we are focused on managing expenses. Read the rest of this transcript for free on seekingalpha.com