Lehman's CEO May Have To Go

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Lehman Brothers chief executive Dick Fuld may be ousted from his position, according to senior executives at the securities firm. Fuld's perceived resistance to selling Lehman Brothers is prompting executives within his firm to wonder if he will have to be removed if the firm is to be sold, a move seen as increasingly required by the downturn on Wall Street.
On Monday Fuld participated in his firm's earnings call announcing a quarterly loss. While the detailed discussion of Lehman's financial position quieted many critics, Fuld was widely perceived to be resistant to selling his firm. But there are many at Lehman who are unsure that the firm can prosper independently.
In order to diminish risk from turbulent markets, Lehman dramatically lowered its leverage in the past few months. While this should limit losses, it is also seen as limiting Lehman's upside. This morning on CNBC Charlie Gasparino reported that a large investor and senior executives inside of Lehman are convinced that the firm must either get acquired by a larger partner or dramatically shrink in size. Senior executives who spoke with DealBreaker have said there is growing concern that Fuld's commitment to Lehman's independence might be foreclosing the sale option.
The growing caucus of dissenters to Fuld's reign at Lehman apparently remains a minority view. But people familiar with the matter say that the dissenting view will likely grow if it becomes clear that Lehman must either sell or shrink.

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