Two senior legal executives at CIT Group in Livingston, N.J., are reportedly leaving the company, as it faces a new round of compliance headaches.
Bob Ingato, general counsel at the $67 billion-asset CIT, is expected to leave the bank at the end of the year, according to a
Additionally, Fred Springer, head of ethics and compliance, also recently departed CIT for a job at Banco Santander, the Journal reported.
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Quarterly profit at CIT Group plunged after the in Livingston, N.J., company recorded $167 million in charges tied to its discontinued reverse-mortgage servicing unit.
July 28 -
CIT's bread-and-butter business commercial banking weakened as it embarks on a broader turnaround plan. Soft demand from midsize companies plagued it and other lenders last quarter. Will that problem continue the rest of the year?
April 28 -
Getting CIT back on track could be a legacy-defining assignment for veteran banker Alemany, in much the same way as the firms turnaround after bankruptcy was viewed as a chance at redemption for John Thain. Success would be no small feat.
March 23
The company has not announced a replacement for either executive. A call to the company Thursday was not returned.
CIT last month reported a plunge in quarterly profits, due to issues stemming from a federal investigation into its reverse mortgage servicing business, known as Freedom Financial. The company inherited the unit from its acquisition of OneWest last year.
CIT said on July 28 that it received a qualitative objection from the Fed over its capital plan.
Ellen Alemany took over as CEO of CIT in April, succeeding Wall Street icon John Thain. Shortly before stepping into her new role, she announced
In an effort to boost shareholder returns, CIT has shed assets and is in the midst of a cost-cutting initiative.