John Thain Will Mend CIT, Poll Says

NEW YORK (TheStreet) -- Do you think wx-Merrill CEO John Thain can actually turn around CIT(CIT), now that he's been named CIT's new leader? A majority -- albeit in slim majority -- of readers of TheStreet do.

Thain was named the new leader of CIT earlier this week. CIT, which is the largest lender to supermarkets and apparel retailers, recently pulled itself out of bankruptcy protection. The firm was forced into bankruptcy at the end of last year when it was unsuccessful at restructuring its debt.

At the time, CIT received $2.3 billion from the Treasury Department.

CIT was able to emerge from bankruptcy in just six weeks because its key bondholders had already approved a reorganization plan. The company was able to cut its debt by $10.5 billion and deferred debt maturities for three years.

Since then, CIT has begun lending again, committing to fund $500 million in new government-guaranteed loans to small business customers.

But CIT's image is still badly tranished, leaving Thain with a challenge in terms of repairing the markets' skeptical view of the company.

"Much has been accomplished in recent months to position CIT for renewed success," Thain said in a statement. "We will build upon this progress and work even harder to support small and mid-market businesses. CIT can and will serve an important role in the recovery of the U.S. economy and the creation of jobs."

Thain will replace CEO Peter Tobin, who will remain on CIT's board of directors. Tobin has been heading up the company since Jan. 15 when former CEO Jeffrey Peek retired.