Lehman’s CFO steps down

Lehman Brothers’ chief financial
officer, Erin Callan, has lost her job days after the bank announced massive
quarterly losses.

Callan has been moved to the firm’s investment banking division six months
after being appointed CFO in December 2007 and will be replaced by Ian Lowitt.

The bank’s chief operating officer Joseph Gregory has also stepped down and
will be succeeded by Herbert McDade.

The news follows Lehman’s announcement that it made a $2.8bn (£1.4bn)
quarterly loss – the first in the firms 14-year history. This contrasted with
its performance in the same period last year, when it made a $1.3bn (£668m)

The firm has been badly hit by US mortgage slump and the global credit
Lehman’s shares have slumped by more than half this year on concerns about the
size of its mortgage-related losses and its overall financial position.

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