Lehman shunts president, CFO
Lehman Brothers Holdings replaced chief financial officer Erin Callan and president Joseph Gregory three days after the firm raised $6 billion to help survive the collapse of the mortgage market and reported the first quarterly loss since the comp...
By Bloomberg |
NEW YORK: Lehman Brothers Holdings replaced chief financial officer Erin Callan and president Joseph Gregory three days after the firm raised $6 billion to help survive the collapse of the mortgage market and reported the first quarterly loss since the company went public in 1994.
Callan, 42, who has been a prominent spokeswoman for the bank since she was promoted to CFO six months ago, will return to Lehman���s investment banking unit and will be succeeded by co-chief accounting officer Ian Lowitt, the New York-based firm said on Thursday in a statement. Herbert McDade, the 48-year-old head of the equities business world-wide, will replace Gregory. Gregory ���has been my partner for over 30 years and has been a driving force behind who we are today and what we have achieved as a firm,��� CEO Richard Fuld said.
Fuld���s decision to push aside top executives amid the credit market turmoil mirrors steps taken by his counterparts at rival Wall Street firms. Bear Stearns��� CEO James ���Jimmy��� Cayne ousted co-president Warren Spector in August, and wound up losing his own post and then his firm to a take-over by JPMorgan Chase. Morgan Stanley CEO John Mack fired Zoe Cruz, whom he held responsible for the bank���s mortgage-related losses.
Lehman shares have been pummelled this year, sinking more than 60% as the company���s efforts to shore up capital and reduce reliance on borrowed money have failed to dispel concerns that it faces more mortgage-related losses and diminished earnings prospects.
Even after raising $6 billion on June 9, the stock has continued to drop. Analysts at Merrill Lynch, Wachovia and Oppenheimer cut their ratings on the stock this week.
Lehman, the fourth-biggest US securities firm, declined again on Thursday, dropping by $1.80, or 7.4%, to $21.99 at 9:33 am in New York Stock Exchange composite trading.
Fuld���s decision to push aside top executives amid the credit market turmoil mirrors steps taken by his counterparts at rival Wall Street firms. Bear Stearns��� CEO James ���Jimmy��� Cayne ousted co-president Warren Spector in August, and wound up losing his own post and then his firm to a take-over by JPMorgan Chase. Morgan Stanley CEO John Mack has fared better since firing Zoe Cruz, whom he held responsible for the bank���s mortgage-related losses.
Callan, 42, who has been a prominent spokeswoman for the bank since she was promoted to CFO six months ago, will return to Lehman���s investment banking unit and will be succeeded by co-chief accounting officer Ian Lowitt, the New York-based firm said on Thursday in a statement. Herbert McDade, the 48-year-old head of the equities business world-wide, will replace Gregory. Gregory ���has been my partner for over 30 years and has been a driving force behind who we are today and what we have achieved as a firm,��� CEO Richard Fuld said.
Fuld���s decision to push aside top executives amid the credit market turmoil mirrors steps taken by his counterparts at rival Wall Street firms. Bear Stearns��� CEO James ���Jimmy��� Cayne ousted co-president Warren Spector in August, and wound up losing his own post and then his firm to a take-over by JPMorgan Chase. Morgan Stanley CEO John Mack fired Zoe Cruz, whom he held responsible for the bank���s mortgage-related losses.
Lehman shares have been pummelled this year, sinking more than 60% as the company���s efforts to shore up capital and reduce reliance on borrowed money have failed to dispel concerns that it faces more mortgage-related losses and diminished earnings prospects.
Even after raising $6 billion on June 9, the stock has continued to drop. Analysts at Merrill Lynch, Wachovia and Oppenheimer cut their ratings on the stock this week.
Lehman, the fourth-biggest US securities firm, declined again on Thursday, dropping by $1.80, or 7.4%, to $21.99 at 9:33 am in New York Stock Exchange composite trading.
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Fuld���s decision to push aside top executives amid the credit market turmoil mirrors steps taken by his counterparts at rival Wall Street firms. Bear Stearns��� CEO James ���Jimmy��� Cayne ousted co-president Warren Spector in August, and wound up losing his own post and then his firm to a take-over by JPMorgan Chase. Morgan Stanley CEO John Mack has fared better since firing Zoe Cruz, whom he held responsible for the bank���s mortgage-related losses.
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