Lehman Demotions

Lehman Brothers(LEH) has demoted Chief Operating Officer Joseph Gregory and Chief Financial Officer Erin Callan.Ms.Callan's demotion has drawn mixed reactions.William Smith of William Smith Asset Management was bitterly critical of her.Everything Ms.Callan said for the past six months has proven to be false,he alleged.They recently sold their shares of Lehman because they lost confidence.They are not buying them back,either.On the other hand,Jon Najarian of Option Monster.com said he didn't think Ms.Callan was treated fairly.She seemed to him very honest and forthright.She really believed what she was saying.Some think Lehman Brothers cannot survive as an independent entity,now that the subprime crisis has changed the investment banking landscape.As for Ms.Callan,she has reportedly left the firm and is taking the summer off,only having served as CFO for six months.