CIT Group Inc. (NYSE: CIT) is now effectively without a CEO. The troubled financial company has just announced that Jeffrey M. Peek informed CIT’s board of directors of his plans to resign. This resignation is as the company’s chairman and as its chief executive officer. The effective date is listed as December 31, 2009. The only question we would really pose here is if this is a true resignation or if it was a forced-exit based on how things are at CIT.
CIT will form a search committee to oversee the recruitment and to monitor a smooth leadership transition period. Technically, Peek is staying through the end of the year. Just don’t kid yourself about when a CEO announces an effective-date versus the announcement date.
Peek also noted that the recently launched restructuring plan is designed “to enhance its capital levels, bolster liquidity and return the Company to profitability.” This is also on the heels of reports about CIT being closer and closer to bankruptcy.
Shares are down 17% at $0.86 in pre-market trading.
JON C. OGG
OCTOBER 13, 2009
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