Thain replaces CIT board member Peter Tobin, who was namedinterim CEO in January following the retirement of Jeffrey Peek aschairman and CEO. He comes to CIT as two other key managers, COOAlexander Mason and CFO Joseph Leone, have announced plans todepart the company.

"[Thain] is a well-respected financial services executive andproven leader who is uniquely qualified to lead CIT at thiscritical stage," CIT lead director John Ryan says in a statement."CIT and its customers will benefit enormously from his breadth ofexperience, industry acumen and deep knowledge of the financialservices sector."

Before becoming CEO at Merrill, a post he held for less than ayear before agreeing to sell the company to Bank of America, Thainwas CEO at the New York Stock Exchange. There, he presided over theexchange's global transformation into a publicly traded entity.Much of his career was spent at Goldman Sachs, where he rose topresident and COO.