Subprime loan write-down sends CIT Group reeling; Stock looks like a loser as lender's consumer loan drive unravels.(In the Markets)

Crain's New York Business,  July, 2007  

Tags: CIT Group, consumer loan, stock

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Byline: Aaron Elstein Last week was one that Jeffrey Peek, chief executive of CIT Group Inc., would love to forget. His firm, which lends money to companies and consumers alike, saw its stock plunge 11% in a single day after the company shocked the market by posting a second-quarter loss of $135 million.

The bad news is unlikely to end there. Investors who haven't yet abandoned the stock should trot for the exits now. The source of last week's gusher of red ink was a whopping $765 million write-down of the value of the lender's subprime mortgage portfolio--the same one that ...

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