According to Charlie Gasparino’s sources, Erin Callan is now a focus of the wide ranging Lehman (LEHMQ) investigation. According to Gasparino, officials at the agency have begun to delve into Callan’s actions during the first quarter of 2008.
FBN: “It was around this time that prominent short sellers began to call into question Lehman’s accounting and Callan’s defense of the firm’s balance sheet. Short sellers like David Einhorn publicly rebuked Callan for inflating the value of the assets, and publicly defending what they believed was balance sheet manipulation.
Just after the firm announced losses during the second quarter, and the firm began its spiral into bankruptcy, Callan was pushed out as CFO, and she later resigned. As first reported by FOX Business, she officially retired from the securities business early this year after a stint at Credit Suisse.”