Before Demotion, Callan Said Lehman Was Solid

Last week, before Lehman Brothers said it faced a loss and needed to raise capital, then-CFO Erin Callan told CNBC that the capital-raising would give the company stability and help it move towards better days ahead.

Then Lehman sent a shock across Wall Street on Monday when it announced that it expected the loss to total $2.8 billion and would raise $6 billion in capital.

“We took significant and dramatic steps to reduce our asset exposure, to reduce our leverage, while simultaneously improving our liquidity and capital position. Deleveraging is complete,” Callan said then.

The firm Thursday demoted Callan and Chief Operating Officer Joseph Gregory amid investor unrest over Lehman's future.