Lehman Cleans House (LEH)

Posted: June 12, 2008 at 8:32 am

If you thought things couldn’t get weirder in the brokerage firm stocks, guess again.  Lehman Brothers Holdings Inc (NYSE: LEH) has essentially fired its CFO Erin Callan and its COO Joseph Gregory. Technically Callan is going to another department, although it doesn’t take a rocket scientist to figure this out.

This report comes within 72-hours of its $2.8 billion quarterly loss expectations and after a large financing.

Ian Lowitt, the current chief administrative officer, will become CFO; and Bart McDade, global head of equities, will become the COO of Lehman.

This isn’t the way to instill confidence in Wall Street.  Shares are down over 8% at $21.75 right at the open and we’ve already seen over 17 million shares.

Jon C. Ogg
June 12, 2008

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