Unfortunately for beaten down investment bank Lehman Brothers, the Ian Lowitt Era began with a whimper. 

Lowitt, Lehman’s  fourth new CFO since 2005,  made his debut on the world stage with a full minute of silence during the firm’s standing room only second-quarter conference call. Turns out a master of financials, former firm treasurer, Rhodes Scholar and the man-chosen-to-restore-confidence in Lehman forgot to switch on his microphone.

This awkward moment in the ongoing credit crunch followed CEO Dick Fuld’s forceful defense of the firm’s outlook and his assurances to the No. 4 investment bank has a handle on the problems that generated a $2.8 billion net loss. 

Funny thing is, Fuld had just assured his audience of analysts that Lehman will provide greater transparency, the legacy of accusations from critic David Einhorn that the firm was too secretive with vital information about exposures and asset valuations.

Lowitt also replaced Erin Callan, the well liked banker whose confrontation with Einhorn, and her spotty performance during the previous conference call, left investors with the unsettling view she was not cut out for the big job.  Below is the transcript of Ian’s failure to launch.

Dick Fuld, Lehman Brothers Holdings Inc. - Chairman, CEO 
Our goal — our goal is simple. That’s to create value for our shareholders and for our debt holders, for our clients, and for our employees. On many fronts, in this cycle, we did not achieve this goal. This is my responsibility. We’ve made a number of changes. It’s now my job to make sure that we execute. Ian? 

Ian Lowitt, Lehman Brothers Holdings Inc. - CFO 

(52 seconds of silence)
 
Operator   
Please continue to stand by. 
Lowitt
I’m sorry. I’m going to start over with my remarks. My microphone was off. Thanks, Dick. The microphone’s now on. Good morning and thank you for joining us today. 

(To see DealZone take on Fuld’s view on Lehman’s independence, click here. )