Former Lehman CFO Lowitt Said to Leave Barclays Wealth Unit
Ian Lowitt, who served as chief financial officer of Lehman Brothers Holdings Inc. in the months before its 2008 collapse, is leaving Barclays Plc (BARC), a person with direct knowledge of the move said.
Lowitt, 48, had joined Barclays when the London-based bank bought Lehman’s U.S. securities business through a bankruptcy auction in 2008. At Barclays, he was chief operating officer of the wealth and investment management division in the Americas.
A voice mail left at Lowitt’s office at Barclays in New York wasn’t immediately returned.
Former Lehman Chief Executive Officer Richard Fuld promoted Lowitt in June 2008 to replace Erin Callan following a 65 percent drop in the firm’s stock price that year. Lowitt had been treasurer from 2000 to 2005 before being appointed chief administrative officer. He had been with Lehman since 1994.
Lehman filed the biggest bankruptcy in U.S. history in September 2008 with $639 billion of assets, sending global financial markets reeling.
Anton Valukas, the examiner in Lehman’s bankruptcy case, wrote in his 2,200-page study on the firm’s collapse that Lowitt was among a chain of former CFOs of the firm who didn’t disclose a financing method called Repo 105 that hid as much as $50 billion of Lehman’s debt as its credit dried up.
A lawyer for Lowitt, Lewis Liman, said in March 2010 that his client had done nothing wrong.
“In the three months during which he held the job, Mr. Lowitt worked diligently and faithfully to discharge all of his duties as Lehman’s CFO,” Liman said. “Any suggestion that Mr. Lowitt breached his fiduciary duties is baseless.”
Lowitt told a court in April 2010 that Barclays offered him a $4.5 million retention bonus so he could help the bank assimilate Lehman.
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