CIT Group (NYSE:CIT) said Chief Executive Officer Jeffrey Peek plans to resign at the end of the year, as the commercial lender of about a million small and medium-sized businesses struggles to avoid bankruptcy.
The company announced today that its board of directors is forming a search committee to oversee the recruitment process.
The outgoing CEO, Jeffrey Peek, who has been with CIT Group since 2003, said in a statement that CIT’s recently launched restructuring plan — designed to increase the co.’s capital levels — makes it “the appropriate time to focus on a transition of leadership.“
Devastated by the downturn in the credit markets, CIT has been attempting for months now to restructure its operations to remain in business.
The New York-based lender received $2.3 billion in government bailout money last fall, a $3 billion emergency loan in July from some of its largest bondholders, and bought back $1 billion in debt. The co. however, still needs to significantly reduce its debt in order to avoid bankruptcy, which seems increasingly likely at this point.
Experts have warned that a collapse of CIT would deal a major blow to an already fragile economy.
Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!
It’s amazing how a CEO can run a company so quickly into the ground that has been in existence for more than 100 years. The caliber of great company leaders has seriously degenerated over the years as their reach for ever greater short term profits has eclipsed long term vision and caution.
Pathetic when you think about it and the same goes for Congress too.
Couldn’t agree more.