CIT CEO to Resign at End of Year
October 13, 2009 by Mark Ellis
Filed under Business
Struggling lender CIT Group made headlines when it announced a little more than a month ago that it would extend the contract of CEO Jeffrey Peek until September 2, 2010. Today, the company, a commercial lender that gives funding to around 1 million small and medium-sized businesses, announced that Peek will resign from his post as chief executive at the end of the year.
The news comes two weeks after the company announced a massive restructuring plan that will most likely involve either a pre-packaged bankruptcy or an enormous debt swap effort in order to get the lender back on its feet following the financial crisis. CIT Group, which has recently been struggling to avoid bankruptcy, failed to get more federal bailout money in July after previously receiving $2.33 billion from the Troubled Asset Relief Program.
According to Peek, the current time is an appropriate time for his company to focus on making the transition from one leader to the next. Peek also stated that he will continue working with CIT Group’s board of directors to help the company turn around its recent misfortunes, including the loss of $5 billion in the last nine quarters and a second-quarter loss of $1.62 billion.
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