Lehman bounced its chief financial officer, Erin Callan, and chief operating officer, Joseph Gregory, today in response to the uproar over the firm’s poor performance. The move is an effort to regain the credibility Lehman lost over repeated misstatements of the company’s exposure to the sub-prime mess and resultant credit crunch.
With more than $60 billion of mortgages, real estate assets, and asset-backed securities still on its books, I’m still not sold, but this will help. As we saw with Bear Stearns, a bank is only as strong as its reputation. Too many doubts, and you’ve got Jaime Dimon in your office.