CIT CEO Jeff Peek Pushed Company Into Risky Subprime Bets

bloomberg.com:

July 14 (Bloomberg) -- CIT Group Inc. Chief Executive Officer Jeffrey Peek moved from a New Jersey office complex to a 28-story glass tower on Manhattan's 42nd Street featuring a lobby bathed in blue, green and red. Three years later, he's fighting to keep the lights on at the century-old finance firm.

Read the whole story: bloomberg.com

Comments

[rubrik r]

I think the nation's housing market is facing new downward pressure as holders of subprime-mortgage bonds inundate the market with foreclosed homes at prices that are much lower than where many banks are willing to sell.

"Experts say this is a bad omen for residential real-estate prices and homeowners trying to sell or refinance, because the fire sales, many to cover soured subprime loans, put downward pressure on the value of nearby homes. All of this undermines federal efforts to stabilize the housing market and revive the broader economy.

"While the banks are trying frantically to get loans off their books, they face the problem of large shadow inventories of housing being dumped on the market, which would depress prices further," said Anthony Sanders, real-estate finance professor at George Mason University in Fairfax, Va."

With high joblessness, it is only normal that subprime-mortgage holder would like to sell their properties since they are not sure of the employment status in the coming months.

Read More http://www.housingnewslive.com/is-the-housing-market-recovering.php

Check Out: http://www.housingnewslive.com/blog.php

[Sundialsvc4]

Go to jail. Go directly to jail.

You cannot commit trillions of dollars in blatant securities fraud, usury, extortion, racketeering and other crimes and expect to receive a fat check.

You can expect to receive a subpoena and to be placed under arrest.

[themodernleader]

CIT will be bailed out. Yet, the ECO committed fraud omission and commission to make unconscionable profits for himself. Rewarding malefeasance and venality is an effront to the membership of our organization. Such actionable policy can destroy our democracy. Where are our law enforcers in this corrupt country?