|
CNBC'S MOST SHARED
- Investing in Tech Now
- Apartment Vacancy Rate Hits 22-Year High
- Software Giants Rush to Cash In on Carbon-Trading
- Warren Buffett's Complete Sun Valley CNBC Interview - Transcript and Video
- What You'll See On My NASCAR Documentary Tonight
- Warren Buffett Tells CNBC Consumer Sales Remain "Very, Very Soft"
- Warren Buffett: Economy Needs Another Dose of Viagra
- Preparing for Retirement
- Lenny Dykstra - What Went Wrong?
- Nikkei on Track to Break 6-Day Losing Streak
- SEC, CFTC to Police Over-the Counter Derivatives
- AIG Prepares to Pay More Bonuses to Executives
- China Demands Currency Reform, France Backs Debate
- IEA Sees Global Oil Demand Bouncing Back in 2010
- UBS Can't Comply with US Request: Internal Memo
- Treasury Sold Warrants Below Market Value: Panel
- New Inquiries into Murdoch Paper Phone Hacking Case?
- China Accuses Rio Staff of Bribing Steelmakers
- Assets Are Less Toxic, but Banks Have Other Troubles
- Warren Buffett's Complete Sun Valley CNBC Interview - Transcript and Video
- Warren Buffett Tells CNBC Consumer Sales Remain "Very, Very Soft"
- July 10th in Market History
- Microsoft Plays a Game of Bing Pong
- Options Smell 'Blood' on Infosys
- Christmas in July: Consumers To Out-Scrooge Scrooge
- GM's Second Chance
- Art Cashin: Traders Weigh Obama Policy Changes
- Warren Buffett: Economy Needs Another Dose of Viagra
.ll_medium.jpg)
Text Size 
CIT Group [CIT
Loading...
()
] said it had placed the chief executive and other top executives at its student loan unit on paid leave, after a recently announced investigation by New York's attorney general.
New York Attorney General Andrew Cuomo is probing the extent to which universities and their financial aid officials are receiving kickbacks from student loan companies in exchange for steering business their way.
Cuomo's office said last week it is investigating grants of stock from Education Lending Group, the former holding company for Student Loan Xpress, to financial aid officers at three major U.S. universities.
CIT said it placed Student Loan Xpress CEO Mike Shaut on paid leave, along with President Fabrizio Balestri and Vice Chairman Robert deRose.
Randall Chesler, president of CIT Consumer Finance, will oversee the student loan business on an interim basis, CIT said.
The management changes are designed to help CIT conduct its own probe into the student lender.
CIT acquired Education Lending Group in 2005. In a prospectus for a 2003 stock offering, when the company was publicly listed, Education Lending Group said that officials from New York's Columbia University, University of Southern California and the University of Texas each owned at least 1,500 shares.
Student Loan Xpress is a preferred lender at the three universities.
"I don't think this is really going to have a material impact on their operations, but the message they're trying to get across is, they're taking any kind of corporate governance issue very seriously," said David Chiaverini, an analyst at BMO Capital Markets with a "market perform" rating on CIT.
Print
Email
Data is a real-time snapshot *Data is delayed at least 15 minutes