Shock and awe this morning from Lehman Brothers, which announced it would fire its COO and demote CFO Erin Callan to the rank of “senior investment banker.” Shares fell more than 7 per cent in early trade in New York.
Statement:
Lehman Brothers, the global investment bank, today announced that Herbert (Bart) H. McDade III will succeed Joseph Gregory as president and chief operating officer of the Firm, and Ian Lowitt will succeed Erin Callan as the Firm’s chief financial officer. Mr. Lowitt will join the Firm’s Executive Committee.
These management changes are effective immediately, Lehman said.
“Bart, who has been my partner for 25 years and has proven himself to be the Firm’s best operator, is the right individual to take on this responsibility and lead the Firm to the next level. His experience in both Fixed Income and Equities Capital Markets will benefit the Firm, especially during these challenging times,” said Richard S. Fuld, Jr., Lehman Brothers’ chairman and chief executive officer.
“Joe 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. This has been one of the most difficult decisions either of us has ever had to make,” Mr. Fuld continued.
Related links:
Callan and Gregory victims of Lehman shake-up - FT
Lehman faces questions over long-term model - FT
“They’ve Got To Start Thinking About ‘Selling The Firm’” - Here Is The City
