The beleaguered investment bank ousts Erin Callan from the CFO slot and Joseph Gregory as COO. Will the moves pacify its critics?Heads usually roll on Wall Street when the going gets ugly, and this time is no exception. On June 12, Lehman Brothers Holdings (LEH) ousted its highly visible chief financial officer, Erin Callan, along with its president and chief operating officer, Joesph Gregory, as the company hopes to stanch the bleeding caused by massive writedowns and a rapidly sinking share price. Lehman announced that both Callan and Gregory would remain with the firm, with Callan returning to its investment banking unit.
So far, Chief Executive Officer Richard Fuld remains secure. Fuld is the architect of Lehman's comeback following its disastrous 1980s merger with American Express (AXP). He also guided the company through the Long Term Capital Management crisis in 1998, when Wall Street had essentially written off the firm. "If Fuld does step down or is axed, then the real debate can began on Lehman's survival," says Celent analyst Chermaine Lee.
Plummeting Share Price
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