23rd March 2010: The Callan-Einhorn Battle

Provisional go-ahead to work on a new journal article with Ben Eltham.

CFA Institute‘s strategies after the global financial crisis: raise awareness of the CFA Charter through regional investment conferences such as in Bahrain, with CFA Bahrain; and new memoranda of understandings with capital market regulators.

A profile of Lehman Bros. fallen CFO Erin Callan revisits an early chapter in Andrew Ross Sorkin‘s Too Big To Fail. Sorkin recounts how Callan is promoted too quickly by Lehman’s board, and then forced into a corner by market volatility. As the firm’s CFO, Callan then adopts a charm offensive strategy with analysts and financial media. The strategy fails, most spectacularly when Callan has a war-of-words with David Einhorn, the hedge fund manager of Greenlight Capital who ‘shorts’ Lehman’s stock. Guardian scribe Andrew Clark blames the ‘glass ceiling’ and trader floor misogyny. Perhaps true, but for me there’s another, more compelling explanation: Callan opted for media-savvy public relations strategies which Einhorn as a masterful short-seller was trained to see through. For more on his investment research process, see Einhorn’s book Fooling Some of the People All of the Time (Hoboken, NJ John Wiley &.Sons, 2008).

CNBC: The Fall of Erin Callan, CFO (March 2010)

CNBC: David Einhorn on Lehman Bros. and Erin Callan (June 2008)