Bloomberg.com: CIT Group Plans Interim Replacement for CEO Peek

Bloomberg.com: CIT Group Plans Interim Replacement for CEO Peek

January 15 2010

CIT Group, Inc., the century-old commercial lender that emerged from bankruptcy last month, plans to name a temporary replacement for Chief Executive Officer Jeffrey Peek after he steps down.

The next chief inherits a firm that’s still shut out from the commercial paper market, CIT’s traditional source of funding.  Peek led CIT as it expanded into subprime lending and plunged into Chapter 11.  The firm’s recovery plan depends on tappping CIT’s federally insured bank unit and may face resistance from U.S. regulators.

“I wouldn’t want to be the recruiter trying to fill the position,” said Joe Sorrentino, a managing director specializing in the financial services at Steven Hall & Partners, an executive compensation consultant.  “It’s one thing to deal with a bankrupt company, but it’s quite another when you have the government involved.”