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Banking, finance, and taxes

CIT Chairman/CEO Out (CIT)

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By Douglas A. McIntyre Updated Published
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CIT LogoCIT 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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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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