Lehman Brothers chief financial officer Erin Callan this morning faced what was perhaps the biggest challenge of her career: explaining Lehman's losses and need to raise capital to the markets. She began by lowering expectations--saying the Q&A on this morning's conference call would be limited because this was a preliminary announcement and more granular numbers were still being worked out--and wound up answering many questions in great details.
She's getting mixed reactions. Many are impressed by her confidence and competence with talking about Lehman's large asset sell-off and deleveraging. Others, however, aren't sure that Lehman really has a enough of a grip of the risks faced by its portfolio. So we decided to ask the experts, you.
After the jump, our poll on Callan's Monday morning performance.
Posted by guest , Jun 09, 2008 1:23PM
This is the equivalent of saying about a a black guy "he's well-spoken" Did you do a poll for Gary Crittenden's first conf call as CFO of Citi?
Posted by guest , Jun 09, 2008 1:33PM
to 1:23
fact.
Posted by Johnny , Jun 09, 2008 1:34PM
Strike a nerve, guest?
Posted by guest , Jun 09, 2008 1:41PM
How does Lehman Brothers not know the extent of thier subprime losses? Are their heads completely in the sand? Ultimately, Erin is responsible for reporting the whole truth of the matter. I think she's being less than honest. Lehman will be trading on the pink sheets soon.
Posted by guest , Jun 09, 2008 1:44PM
@1:23 Isn't this situation with LEH a little bit more stressful and dire than when GC took over as CFO in 3/07 at CITI?
Her real test will come when they release their full earnings, and she can't use the caveat of "these numbers are preliminary"
Posted by cheesedog , Jun 09, 2008 1:46PM
Crittenden isnt hot....so why would we care about his call?
Posted by guest , Jun 09, 2008 1:48PM
the real question is: what's Intrade show on a bailout?
Posted by Judson_Clark , Jun 09, 2008 1:52PM
Women - can't live with them, can't live without them.
Posted by guest , Jun 09, 2008 2:01PM
Women - can't live with them, pass the semen.
Posted by HAM05 , Jun 09, 2008 2:02PM
can you ammend the poll to read:
1. thumbs up
2. thumbs down
3. thumbs down, but there is a strange tingling in my ballz and only ec can scratch. rawr.
Posted by guest , Jun 09, 2008 2:06PM
I don't know who was the architect of the coverage in the WSJ prior to the big Einhorn controversy. However, Callan did give the reporter the name of her personal shopper (who was interviewed) and wore a short skirt with high heels for her WSJ photograph. There's nothing that contributes more to a downfall than media overexposure. Harsh lesson to learn.
Posted by guest , Jun 09, 2008 2:15PM
i vote for the "rawr" one
also, @1:44 disagree, chuckles the clown had just been ousted, gary was brand new to the firm, and had to answer questions not just about the financials which can be read off a spreadsheet but strategic direction and etc. much harder to give good answers that just glancing over at your IR guy to see if you are allowed to say how much you actually marked down your cdo.
Posted by guest , Jun 09, 2008 2:16PM
Off Topic -- did anyone happen to catch Maria Bartolomo's hair? WTF?!! She looks like Pepe LePew. Totally skanky highlights.
Posted by girl , Jun 09, 2008 2:16PM
UGH @ 2:06
I like how a woman gets shit for wearing designer clothes that she earned and paid for (and having nice legs to boot) but no one darts a fucking eye when a toolface poses in front of his boat wearing a godamn suit. A suit! On a boat!
In short, you suck.
Posted by guest , Jun 09, 2008 2:23PM
girl, i agree with you if that dude is wearing a muscle shirt or showing off the bulge in the speedo, but aren't these guys usually wearing suits or at least khakis and a polo? it's not the double standard you are trying to make it.
Posted by american bandersnatch , Jun 09, 2008 2:24PM
I think only one knucklehead had an issue with her clothing and legs. I think almost all heterosexual men like their colleagues to look good.
Posted by guest , Jun 09, 2008 2:24PM
nobody is stopping erin from wearing a suit and standing in front of her ferarri. she bought it, fine. but the upskirt shot is not really comparable. unless she buys some boobs. that would be a fair comp then!
Posted by guest , Jun 09, 2008 2:25PM
Yeah. In fact, since women are always wearing skirts to work these days, with no hose, I think men should be able to bermuda shorts at least. I mean come on, the full pant leg is so last decade.
Posted by Anal_yst , Jun 09, 2008 2:26PM
@ girl/2:23
I think we all agreed Devaney was/is a dbag (as are others), and that Erin has obviously done a few things right (to say the least) to get where she is.
That being said, when you're a woman (because some people pre-judge, unfairly) you unfortunately have to be a bit careful, lest you be perceived by said assholes. The piece Erin did - while I didn't really find anything wrong with it - gives fodder for the less-mature/more chauvenistic critics, rightfully or wrongly.
Posted by guest , Jun 09, 2008 2:28PM
@ab what about those of us who find hot chicks in the workplace to be a distraction (as well as in some cases a harassment lawsuit waiting to happen) ?
Posted by FUNdamental , Jun 09, 2008 2:30PM
@ girl - concur, I for one support ms. Callan's attempt at ruling the cougar cage and would encourage any future sexy dressing.
I'm a little disappointed that leh didn't take the opportunity that bear missed to put baghdad bob up for the call. (Standing in front of an empty vault). "We are awash with the liquidity and virgins god has provided. In fact we forecast earnings for next quarter at 80 kajillion dollars, praise his holiness we declare victory over the pigdogs at goldman!!"
Posted by guest , Jun 09, 2008 2:33PM
I guess there is a necessary disparity, if you have a job where you never leave the office then hot chicks are essential (of course the inevitably get ruined by that environment before long, which also explains exactly why banks are not cutting their 1st year analyst programs 100%!!), whereas if you are out by 6pm every day its sometimes better to have a female free environment so you dont need to worry about offending them
Posted by american bandersnatch , Jun 09, 2008 2:37PM
@2:28
Frequent masturbation will make them less distracting. However, to avoid issue #2, try to avoid masturbating in their presence.
Posted by girl , Jun 09, 2008 2:39PM
It's not an upskirt shot, its a shot taken from below (which is an oft used mechanism in photography to make the subject look powerful) and she happens to be wearing a skirt (which about 90% of the girls in the office are wearing right now). The board here continously reduces intelligent and powerful women like Erin to the sum of their limbs and highlights; you just can't accept for a second that she is your colleague and deserves your fucking respect. It's really disgusting and disheartening to read.
And I maintain that Devaney's shot was completely ludicrous and 80 times more tacky.
Posted by FUNdamental , Jun 09, 2008 2:46PM
@ girl - any shot with mr. Mozilo for instance is rediculous, even george hamilton is offended.
Posted by guest , Jun 09, 2008 3:31PM
Well...check the "money scoreboard." Looks like LEH has zero points on the board. She's no different than a man with the same score.
Posted by guest , Jun 09, 2008 3:49PM
Erin is just like any broad. Always looking for a liquidity injection.
Posted by guest , Jun 09, 2008 3:51PM
Just because you are CFO you deserve respect? Or does just Erin deserve respect while every other senior executive mentioned on Dealbreaker typically gets trashed by one and all?
Posted by guest , Jun 09, 2008 4:00PM
haha i love it she just HAPPENS to be wearing a short skirt. completely unplanned. she probably didn't even know there was a camera crew in the office at all :)
Posted by guest , Jun 09, 2008 4:56PM
girl -- I posted at 2:06 p.m. and I'm sorry I pissed you off. Usually I am in agreement with you.
I used to work for a man in a very sensitive post who was constantly sought out by the press for photos and interviews. He almost always turned the press down, though would occasionally talk to them one on one without cameras. He told me his choice to remain low-profile was born of his desire to last as long as possible; that when you went high-profile you were inevitably threatening to many. He has now survived in his job 19 years.
The media loves to knock off the pedestal the same people they put up there in the first place.
An attractive, capable businesswoman should be savvy about how she wants to be portrayed by the media. The point is not to establish your physical attractiveness, it's to establish your merited arrival at a certain level of professional prominence. If you know you're going to be photographed, don't play to the wrong crowd by wearing a short skirt and high heels. If you think that the photographer is going to photograph you from an inappropriate angle, don't consent to the pose. And it's totally irrelevant to the purposes of the interview as well as an invitation to be dismissed as a lightweight to discuss your personal shopper at Bergdorf Goodman.
A woman who has worked her way to a position like a CFO of a major investment bank doesn't have to demonstrate that she is alluring. It's ridiculous that such a consideration would be inserted into a business profile. I'd say that it was a throw-back to some earlier time, but no earlier time existed where this was considered a sound idea.
I think Erin Callan made some bad choices in her interview with the WSJ, and I think there will be a cost exacted for those choices sooner rather than later. It makes me groan, because there are so few women who make it to that level. It's too bad.
Posted by girl , Jun 09, 2008 5:21PM
@ 2:06/4:56
Thanks for the thoughtful reply. I do agree that managing perception is important at any level and particularly important at hers. But I also know that for a woman its a matter of personal pride to be able to reconcile outward femininity with performance on the job- perhaps because so few women are seemingly capable of achieving this.
I'm not a fan of homogeneity between men and women's style and certainly don't think women have to mimic male style (read: pantsuits) in order to be appreciated for their brains. I think men should alter there way of thinking and be able to appreciate a talented individual regardless of what she chooses to wear.
I would agree that dicussing one's style is baseless in a business article, but the degree of scrutiny she is getting on account of this is unfounded. From what I've read she's a fine example for female executives and one to whom we should defer a little bit of respect. Or at the least, we should criticize her for what she creates and executes, as opposed to how she appears.
Anyway I did appreciate your comments and completely understand where you are coming from, even if I may not identify.
Posted by guest , Jun 09, 2008 5:31PM
@girl Please check your spelling before posting.
Posted by guest , Jun 09, 2008 5:50PM
Erin's Last? Day at LEH:
Fuld: So, what have you done for me lately?
Erin: Well, I've been on TV a lot, I got my legs in WSJ and on DB, I'm now a fashionista, and I wear killer shoes.
Fuld: Yes, but what about your CFO office?
Erin: The interior decorator did a fabulous job; don't you agree?
Fuld: Yes, but what about your CFO job?
Erin: Well I borrowed at the Fed window, I worked a $500mil bogus accounting trick back in March, I use the word "preliminary" a lot, and I think I have that Einhorn guy on the ropes.
Fuld:
...Somebody else add the next few lines...
The Hatchet Man
p.s. I've witnessed this line of questioning in the past.
Posted by guest , Jun 09, 2008 6:54PM
If Erin was fat or ugly all the people on DB would be making fun of her for that. It's just that guys make fun of women for their looks, why not say a guy sometimes is a fat schlub? Or he's too hot? No one ever talks about Dick Fuld's looks or Cayne's or Jamie Dimon's. What suits do they wear? How is their haircut? How is their legs? Here we had Hillary, very unattractive and men made fun of her for that reason. Here we have Erin and you're knocking her because she's attractive. It is a double standard. Thankfully she makes more money than most of you will ever see.
Posted by Anal_yst , Jun 09, 2008 8:44PM
@ 6:54
You're only part right. We've made fun of fat/old-ass jimmy cayne (remember the "underwear" pic?), pretty sure lots of fat bastard men get made fun of regularly, although perhaps not to the degree you feel Erin is getting it (although as an above poster pointed out, she really didn't help her case, but thats not my point). There absolutely is a double standard, its not right, but it exists (unfortunately). Surefire way not to stick out on wall street is to look "normal", which is far less exciting, but if thats you're goal, its the way to go. Ok, enough rambling, i'm out, pz
Posted by guest , Jun 09, 2008 9:00PM
Ah but maybe not looking normal helped her get where she is..maybe other people were just as good as her, but she's pretty so, people noticed. Just saying.
Most of the time no one notices what a man looks like on Wall St. Or cares. But all the women, even the women not seen on DB (like Girl and Blndbkr and Bess Levin) are commented about all the time -- the db guys talk about them just from their imaginations. Guess being a woman is a powerful thing for good and ill. Can't get away from it.
On the other hand, that's why I read this site every day - I love the rude comments. And I like knowing how guys really think.
Posted by Anal_yst , Jun 09, 2008 9:19PM
@ 9:00
You make a good point, "Guess being a woman is a powerful thing for good and ill. Can't get away from it."
Also, i hope for the sake of the future of humanity you don't think the bs comments on this site are "how guys really think"!
Posted by guest , Jun 10, 2008 7:25AM
I see Erin on about a monthly basis professionally. I don't work at Lehman. I have never seen her to be wearing anything suggestive, or acting anything other than professional. When I saw these pictures, I definitely viewed it as a departure and something for the media - or possibly, as girl points out, something for Erin's woman-ego?
As I said, though, I don't work at Lehman. Maybe she usually wears the short skirts and shows some thigh on the desk on a daily basis just for the home crowd. Anyone at Lehman care to settle this?
Posted by guest , Jun 10, 2008 7:56AM
@Analy-yst - I actually do think that this is what men think. I think the "guest" and the internet handles are useful things to hide behind here, to say things that no one can say at work, or indeed, almost anywhere else. We live in a very PC world. And while I appreciate not being sexually harassed anymore at the various jobs I've had since Anita Hill (it all stopped after Anita Hill, instantly) I do think this site, more than most of the blogs/sites I read, are an inside view of the mind of men. One of my very close male friends says I have no idea how men think, that they're all pigs. And from DB this seems to be true.
On the other hand I think it's very funny. And the comments are the main reason I come here, I barely read the articles. I love all the commentors. The bs here is funny, but there's a Russian saying - in every joke there's some joke. So while I do see that most of this really just meant to be funny male humor, it's funny because guys do think like this to some extent. Men never talk to me like you guys do to my face, and I'd probably be offended if you did. And most of my friends are men, and mostly from Wall St.
And to answer 7:25, I think the WSJ article was well-rounded because actually, women do care about what they wear and it's part of our lives. Why should the way men think be the yardstick by which women are ruled. What's wrong with looking good, having a personal shopper and nice legs? Does it distract from her message/power? It seems to here on DB, so I can guess yes. But what if it's also a source of her power? why could it not be?
Posted by guest , Jun 10, 2008 8:04AM
That doesn't answer the question really
Anyway the time to be showing off your legs and expensive fashions and tastes is when your bank is printing money like its free c2006 not when you are in danger of going out of business and laying off employees and suffering the worst losses in history c2008. This goes for everyone not just the mommies of course, you hear me John Mack you sexy sexy beast?
Posted by guest , Jun 10, 2008 8:13AM
@8:04, well I don't work at Lehman, but know people who do. The guys I know there think she's hot because she's attractive (and they like her legs) AND because she's brainy. Smart guys are attracted to smart women so they tell me. The guys I've talked to there are impressed with her on both accounts. So good on her.
I don't know if anyone thinks John Mack is hot?
And basically - you know guys wear the same 5-8 suits every two weeks and rotate, it doesn't have to cost all that much to look good. Work clothes are kinda like uniforms anyway - you only need so many, mix and match. You can look good for not that much. A few really nice things mixed in with stuff from H&M and no one knows the difference.
Posted by guest , Jun 10, 2008 8:19AM
H&M sells suits? jesus.
Posted by guest , Jun 10, 2008 8:24AM
guest @7:56 is a lesbian.
Posted by guest , Jun 10, 2008 8:26AM
@8:13 only back-office people wear suits...
Posted by guest , Jun 10, 2008 8:29AM
@ 8:19 - No, you wear an expensive suit with different H&M tops. Just like guys wear different shirts and ties, but you wear the same suits every week, don't you?
@8:24, I'm not. Are you?
@8:26, nope, those who see clients wear suits too...and the brass wear suits. And Hillary.
Posted by guest , Jun 10, 2008 8:31AM
@8:29 "@8:24, I'm not. Are you?"
What, are you proposing something?
Posted by guest , Jun 10, 2008 8:43AM
Ken Griffin wears suits. End of discussin.
Posted by guest , Jun 10, 2008 8:51AM
@8:43 That's because he is a douchebag. Even with all that $$$ he is still trying to overcompensate.
Posted by guest , Jun 10, 2008 9:02AM
I said "End of discussin."
Posted by guest , Jun 10, 2008 9:09AM
You are gay.
Posted by guest , Jun 12, 2008 8:50AM
Erin out... He, he.
Posted by guest , Jun 12, 2008 8:51AM
Someone give her a 'designer' box to put her stuff in.