Credit Suisse takes on Lehman's ousted CFO

The former CFO of Lehman Brothers is to join Credit Suisse as a managing director and head of its global hedge fund business.

Callan was one of the Lehman managers who saw their roles removed or diminished after the investment bank announced it had run up losses of £2.8bn (£1.4bn)

Erin Callan’s appointment was announced yesterday and in a statement she said: ‘This gives me the opportunity to return to my roots covering the hedge fund community, which is playing such a critical role on the Street.’

Prior to being CFO Callan was head of Lehman’s global hedge fund group.

She achieved notoriety after appearing on TV and in the newspapers arguing over the ‘true’ state of Lehman’s finance with hedge fund trader David Einhorn, of Greenlight Capitol, who had launched a campaign of shorting Lehman’ stock.

She was also named in a law suit, along with other Lehman managers, alleging the bank failed to properly disclose its exposure to the meltdown in subprime

Paul Calello, CEO of Credit Suisse's Investment Bank, said: ‘Erin will strengthen our position with our hedge fund clients who continue to be an increasingly important client base.’