CIT Group names 3 more outsiders to board

(AP) — CIT Group Inc. on Tuesday announced the appointments of three outsiders to its board of directors and the resignation of two others, completing a shift to a more independent board to guide the commercial lender's restructuring.

CIT Group also said it continues to seek a replacement for Jeffrey Peek, who announced his retirement plans in October and is staying on as CEO and chairman until Friday.

Since the company's Dec. 10 exit from bankruptcy protection, CIT Group has been reforming its board through the appointment of independent directors recommended by bondholders.

The company, based in New York, is one of the nation's largest lenders to small and mid-sized businesses.

The new board appointees are Gerald Rosenfeld, 63, the current deputy chairman of Rothschild North America, where he previously served as CEO for eight years; Anthony Terracciano, 71, who has served since January 2008 as chairman of SLM Corp., the student lender best known as Sallie Mae; and Laura Unger, 49, a former commissioner of the U.S. Securities and Exchange Commission, now working as a private consultant.

The two board members resigning are Christopher Shays, a former Republican Congressman from Connecticut, and Lois Van Deusen, managing member and owner of LVD Consulting.

Peek said Tuesday's moves complete the board's reconstitution, which included the appointment of four new board members named on Dec. 22.

During the bankruptcy, CIT Group planned a board with 13 directors, including seven new independent directors, five incumbents, and Peek, who will give up his board position once his replacement is named. The company has said the new board will name Peek's replacement.

CIT Group is also seeking to replace Chief Financial Officer Joseph Leone, who last month announced plans to retire April 30.

Shares of CIT Group fell 58 cents, or 1.7 percent, to $33.21 in midday trading.

CIT Group swiftly navigated through bankruptcy in just six weeks because its key bondholders had already approved a plan to reorganize the company. The company had been forced into bankruptcy after failing to raise cash to pay off outstanding debt. CIT was also hammered by mounting loan losses as more customers fell behind on repaying loans amid the recession.