•CIT Group CEO Peek to Resign as Lender Teeters on Bankruptcy: Goldman Salivates

Discussion in 'Stocks' started by ByLoSellHi, Oct 13, 2009.

  1. Goldman Sachs will get its tentacles wrapped around their 1 billion from CITs death real soon. I'll bet they will pop out the Cristal and Beluga and dance a wicked jig.


    CIT Says Chief Executive Peek to Resign at Year-End (Update1)
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    By Josh Fineman

    Oct. 13 (Bloomberg) -
    - CIT Group Inc., the 101-year-old lender that may file for bankruptcy protection, said Jeffrey Peek plans to resign as chairman and chief executive officer by the end of the year.

    The board formed a search committee to find a new CEO, New York-based CIT said in a statement today.

    Peek, 62, joins a list of bank executives who have announced plans to step down in recent weeks. Bank of America Corp. CEO Kenneth Lewis said last month he would be leaving by the end of the year, and Morgan Stanley head John Mack announced he would retire and hand over the job to Co-President James Gorman.

    “He will continue to have our complete support as we conduct the search for his successor,” board director John Ryan said in the statement.

    Peek joined CIT in 2003 after being denied the top job at Merrill Lynch & Co. The New York-based commercial lender lost $5 billion in the last nine quarters as the collapse of the market for subprime mortgages sparked the worst financial crisis since the Great Depression and cut off CIT’s short-term funding.

    CIT has asked bondholders to exchange unsecured obligations for new secured debt maturing in four to eight years and preferred shares. Bond and credit-default-swap prices show that investors are speculating the offer to exchange about $29 billion of debt won’t prevent the company from filing for bankruptcy.

    CIT, which finances about 1 million businesses from Dunkin’ Brands Inc. to Eddie Bauer Holdings Inc., will seek court protection through a pre-packaged bankruptcy should the debt exchange fail, according to an Oct. 1 filing. The company posted a second-quarter loss of $1.62 billion as more customers defaulted on loans.

    To contact the reporter on this story: Josh Fineman in New York at jfineman@bloomberg.net
    Last Updated: October 13, 2009 08:47 EDT
  2. That stock was 61 bucks in 2007 and paid a 25 cent Dividend.

    Talk about implosion.

    It seems like everyone decided that loading up on subprime mortgages was a great way to return value to shareholders.
  3. sub0


    I thought Goldman put in more money into CIT than they are getting back? From what I read everyone is focusing on what they'll get but not on what they put in overall.