This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

CIT's CEO Another Capital Market Victim

Stocks in this article: CIT

Jeff Peek came to CIT (CIT) in 2003 to shake up a sleepy lender.

A Princeton University graduate and regular on New York's social circuit, Peek climbed the ranks at Merrill Lynch, eventually running its asset management business before getting pushed out in a power struggle with (now-former) CEO Stan O'Neal.

He then moved to a high-level job at Credit Suisse (CS). When he joined CIT -- now on the brink of bankruptcy -- it was with the notion that he would shortly succeed CEO Albert Gamper and did so the following year. He added the chairmanship of the board of directors to his duties at the start of 2005.

And his ambitions were not small.

Jeffrey M. Peek

"I stand before you today convinced CIT has the right stuff to be a leader, not just another lender," he told investors and analysts in November 2005. Peek was unavailable for comment on this story, according to a CIT spokesman.

With headquarters in Livingston, N.J., CIT was an unglamorous lender to small and midsized companies. Peek moved the company's base of operations to a brand-new, 300,000 square-foot, glass-encased office tower on Fifth Avenue, near Bryant Park.

The Wall Street Journal reported on Thursday that regulators were not going to bail out CIT, causing its shares to plummet nearly 75%. CIT needs about $5.6 billion to avoid a bankruptcy filing, according to a report Thursday by bond research firm CreditSights.

His main strategy was to generate lots of fee-based revenue, as opposed to the boring old practice of simply lending for a few pennies more than it was borrowing, according to Sameer Gokhale, analyst at Keefe, Bruyette & Woods.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs