Erin Callan

Zoe Cruz to start a hedge fund?

Jim Kim — Thu, 23 Oct 2008 13:07:24 -0400

You have to feel for the likes of Zoe Cruz, Erin Callan and Sallie Krawcheck. Each one has held the mythic title--ever so briefly--of the most powerful woman on Wall Street. And in the recent credit crunch, each one left her bank under a cloud.

Callan has resurfaced at Credit Suisse, and we can only hope she ascends to similar heights. As for Cruz, there are reports that UBS was knocking on her door, but she did not want to move forward. TheStreet.com reports Cruz may be considering starting a hedge fund. Some might think this is the worst possible time to start a hedge fund. Then again, when the market has bottomed out, it may be an opportune moment to jump in. She certainly has the brand name to make a splash.

For more:
- here's the article

Erin Callan explained

Jim Kim — Tue, 30 Sep 2008 12:39:33 -0400

Erin Callan runs Credit Suisse's hedge fund business, but she will be remembered for a long time as the sacrificial lamb at Lehman Brothers. She spoke, at times emotionally, about those stormy days with Fortune. A lot of people think that then-CEO Richard Fuld, who has certainly taken his lumps, forced her out. But she says the decision to leave was hers. "In retrospect I was lucky to get out, but I was so sad. It wasn't a relief at the time. I never thought I would leave that firm. It had such a strong culture. People really lived their lives there. I think Dick felt personally horrible about it because I was his protégé. During this difficult conversation with me, he cried." Strong stuff. This sort of emotionalism may have hurt when it came to the commercial real estate portfolio. The bank could not bring itself to cut its losses, she says.

For more:
- here's the article

How to grapple with short sellers?

Jim Kim — Thu, 17 Jul 2008 14:26:04 -0400

Short sellers, who seemed so out-of-favor just a few years ago, have had a great run recently. There certainly have been plenty of targets. The Financial Times raises a timely issue: How do you deal with short sellers if you have been targeted? Lehman Brothers took the let's-talk approach when Greenlight Capital decided to take its famous short position. But then-CFO Erin Callan, who has since decamped for Credit Suisse, couldn't answer some questions to the satisfaction of David Einhorn. The rest is history. But what's the alternative? Hiding behind Reg FD? You ignore the shorts at your peril. Most would likely agree that dialog is the preferred route. Of course, you cannot prepare too much. If your answers are rock solid, you might find an audience willing to close its position and move on. If they still do not get it, good luck. The FT notes one targeted company, Kinder Morgan, put its detailed budget online and mocked the shorts. It worked.

For more:
- here's the Financial Times article

Tough road for Wall Street women at the top

Jim Kim — Fri, 13 Jun 2008 06:58:46 -0400

After Sallie Krawcheck fell off the CEO track at Citigroup and Zoe "the" Cruz "missile" was ousted at Morgan Stanley, people were wondering who would wear the cursed mantle of 'woman most likely to run a big bank someday.' Since last December, when Erin Callan was promoted to CFO at Lehman Brothers, she had shouldered that burden--and shouldered it well. If you are the sentimental sort, it's sad that things turned out the way they did. At 42, she has plenty of time for a second act, but the chance to run a to bank may not come her way for a long time, suggests Fortune. So here's a question: Who now wears the crown of 'woman most likely to become CEO'? Careful--it may be a curse.

For more:
- here's a Fortune article

Two top execs at Lehman ousted; What about Fuld?

Jim Kim — Thu, 12 Jun 2008 10:19:59 -0400

We speculated recently that the top executives at Lehman Brothers may be vulnerable. The firm has clearly lost the confidence of the analyst community, and the board must be nervous. Unsurprisingly, the firm today ousted COO Joseph Gregory and CFO Erin Callan. (For a brief period, the New York Times was referring to the one-time 'most powerful woman on Wall Street' as Mr. Callan). For Ms. Callan, you have to feel bad. Many thought she had a shot at becoming the first woman to head a major Wall Street firm--not that anyone thinks Lehman is in the major category any more. She will head back to investment banking for the time being. The real question here is CEO Richard Fuld? At some point, will the board assign any blame to him? You can bet it has been discussed. As Bear Stearns imploded, the underling execs took the axe first.

For more:
- here's the release
- here's our Lehman Brothers news feed

Man in the spotlight: David Einhorn

Jim Kim — Fri, 06 Jun 2008 10:03:27 -0400

He's one of Lehman Brothers' highest profile critics, a man who has bet heavily against the firm. A real thorn in the firm's side, particularly for Erin Callan, Lehman's CFO. David Einhorn, 39, of hedge fund Greenlight Capital, has been making the media rounds with his analysis of Lehman Brothers. Of course, he has a lot to gain by creating uncertainty and doubt. Some think he's acting recklessly. In his mind, he's on the side of angels. He's certainly no stranger to this sort of media firestorm. He's got a book out by the way, "Fooling Some of the People All the Time." The SEC once took a look at his activity during his battle with Allied Capital. It's fair to say that his campaign, for better or worse, is working. There is a lot nervousness on the Street right now. One analysts says that counterparty worries have led some firms to reduce trading with the firm, notes MarketWatch. That my friends is ominous.

For more:
- here's Einhorn's latest appearance on CNBC
- here's the MarketWatch article

Residence of choice for Wall Street bigs

Thu, 01 May 2008 06:59:58 -0400

Erin Callan, the CFO at Lehman Brothers and perhaps the most powerful woman on Wall Street, has bought a place at 15 Central Park West, according to the New York Observer. The building, which opened about a year ago, is fast becoming the residence of choice for top Wall Street executives. Callan paid $6.5 million for a 31st floor condo (which is only small when compared with the $18 million pad that co-chief of Lehman Real Estate Partners Raymond Mikulich bought on the 15th floor). But at least she has one-upped David Bizer, the head of European fixed-income sales at the UK office; he owns a $5 million place on the lowly 4th floor. In all, four Lehman Brothers executives live in the white building, which puts them behind Goldman Sachs, which has at least seven in the buildings, the article notes.

For more:
- heres' the New York Observer article

Related Article:
Why young people want to be bankers

Top banks go bargain hunting

Thu, 27 Mar 2008 07:59:54 -0400

CNBC notes that more top banks seem to be on the lookout for bargains. Lehman Brothers CFO Erin Callan suggests that the price plunge of many securities has been "driven by many technical factors, which may not reflect intrinsic value." Goldman Sachs CFO David Viniar says a lot of securities indeed are artificially depressed. Goldman has, in fact, formed several funds to buy up distressed securities. All this might strike you as a classic suckers' rally. But the Fed action may have put a floor underneath some of the really hard hit markets. It would not be surprising at all if people started building up larger long positions. This, of course, is a good sign.

For more:
- here's the CNBC article

Related Articles:
Analyst: Credit crisis is over. Article
Cerberus note stokes controversy. Article
JP Morgan bets big on Bear Stearns. Article

Will crisis claim Wall Street's most powerful woman?

Mon, 24 Mar 2008 07:59:58 -0400

Portfolio magazine pronounced 42-year old Erin Callan the most powerful woman on Wall Street, the only one in the foreseeable future with a legitimate shot at someday running her firm, Lehman Brothers. But as CFO of a rumor-plagued shop, there's at least a chance that she won't survive the current crisis. A crashing tide topples lots of ships, men's and women's. Still, what a rise it has been for her. Born the daughter of a New York City cop, she graduated Harvard, and went on to become a star banker to hedge funds at Lehman, helping take the likes of the Blackstone Group public. She's a keeper all right; as long as her firm doesn't go all Bear Stearns on us.

For more:
- here's the Portfolio profile

Related Articles:
Lehman Brothers still faces antsy markets. Article
Women taking their lumps on Wall Street. Article
Sign of times: New CFO at Lehman Brothers. Article

Lehman Brothers still faces antsy markets

Wed, 19 Mar 2008 07:59:56 -0400

For all the talk abut how Lehman Brothers no longer is just a bond shop, when the Bear Stearns news went down, the fear spread directly to Lehman Brothers. The sense that the firm is at immediate risk, however, has waned. It's 1Q earnings were not a disaster, and CFO Erin Callan seems to be saying all the rights things about transparency. According to Business Week Online, Deutsche Bank's star analyst Michael Mayo believes Lehman's $2 billion working capital line with 40 banks is "proof that counterparties haven't lost confidence in the broker-dealer." The new Fed facility also helps, as CEO Dick Fuld took pains to note. Still, people want more information about Lehman's exposure to toxic bonds. Until that happens, there will be continued skepticism associated with the firm.

For more:
- here's the Business Week Online article

Related Articles:
Repo market starting to strain? Lehman an issue? Article
Lehman to lay off another 5 percent. Article
Lehman all but exits mortgage business. Article