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Lehman Brothers Holdings Not The Only One (Possibly) Going Bankrupt?

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A lot of people blame Dick Fuld for the fall of Lehman Brothers, and would like to let him know as much, should he ever emerge from his hermetically sealed bunker. Many also believe the unceremoniously fired Erin Callan and Joseph Gregory were fall girls and guys thrown in under a bus for reasons no more substantive than being too sexy and too hideous dressers, respectively. This latest news gives us pause before endorsing that theory.

On Friday, September 12, the Wall Street Journal reported that Lehman's former president, Joe Gregory, who was demoted along with former CFO Erin Callan in a management shake-up in June, was listing his Bridgehampton house on Surfside Drive for $32.5 million. The collapse of Lehman's stock is a blow to Gregory's lifestyle. He reportedly used to travel by helicopter to midtown from his $3.5 million mansion in Huntington, which was recently renovated, according to a Sotheby's broker. According to one source, Gregory's financial adviser was in negotiations with Lehman's attorneys at Simpson Thacher & Bartlett, working to avert his filing for bankruptcy, after he borrowed money against his Lehman stock to pay for the renovation. "He owes a lot of money for it. They called the margin loan" late last week, the source said.

The Rage Of The Previously Rich [NYMag]