Regulators gave conditional approval for CIT Group's deal to buy OneWest Bank, paving the way for an institution that would be deemed systemically important, with $70 billion in combined assets.

The Office of the Comptroller of the Currency also simultaneously terminated a 2011 consent order against Pasadena, Calif.-based OneWest that stemmed from the financial crisis. OneWest, created in 2009 from the debris of the failed alternative-A lender IndyMac Bank, was found to have satisfied the terms of an independent foreclosure review, the OCC said.

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