Erin Callan Finally Cracks


So Erin Callan, one of the best looking Wall Street bosses ever, is taking a “personal leave of absence” from Credit Suisse, where she has been working advising hedge funds ever since Lehman collapsed. That leaves just one question: has Erin finally, understandably had a nervous breakdown? Or is she quitting to prepare her legal defence in the many lawsuits and potential criminal cases against her?

From the Bloomies:

Callan’s temporary leave was confirmed by Victoria Harmon, a spokeswoman for Credit Suisse in New York. Harmon declined to comment further. The leave starts next week, said a person familiar with the matter. Callan, 43, didn’t respond to two messages left on her mobile phone.

Lehman Brothers was the fourth-biggest U.S. securities firm before its bankruptcy filing last September, the largest in U.S. history. Callan was promoted to chief financial officer on Dec. 1, 2007, and demoted about six months later after the firm failed to quell speculation about mounting losses and a plunge in its stock price.

Callan’s credibility was publicly challenged in a May speech by hedge-fund manager David Einhorn, whose Greenlight Capital LLC had bet that Lehman shares would fall. Einhorn said Callan spoke with him privately and then later changed her story about how the firm had valued a private equity investment.

Bloomberg goes on to note that Callan has been subpoenaed to testify before grand juries, which makes us think that it’s probably not a breakdown but legal troubles that led to her leaving.