Is Lehman Brothers CEO Dick Fuld Next?

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The news that Lehman brothers may have to raise another $3billion to $4 billion could be bad news for Dick Fuld. After months of trying to reassure investors that the worst of the Wall Street downturn was behind the firm, the need to return to the capital markets to shore up Lehman's balance sheet seems to indicate that the management had little grasp of the risks and financial realities faced by the firm. Making bearish analysts and short-sellers seem prescient is not a way for management to win shareholder confidence.
Could the end-game here be the exit of longtime chief executive Dick Fuld? Doug McIntyre notes this morning that the history of being overly optimistic put Fuld in a group which includes the heads of Wachovia, Merrill Lynch, and Citigroup, each of which threw their top man overboard.
"His board can no longer protected him from a series of bad decisions which have driven down the LEAH stock and started rumors that the company is in deep trouble,"McIntyre writes. "Fuld and his board bought time with a thin optimism which is now gone. Fuld will be gone with it."
Others are saying that Erin Callan, Lehman's newly minted chief financial officer, may take the fall for Lehman's stumble. But she's new to the position, and it seems unrealistic to hold her accountable for decisions that predate her role. In the past, investors have not settled for anything less than taking out the man at the very top.
Lehman: Another Financial CEO In Trouble [24/7 Wall Street]

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