James Cayne, the bank’s chief executive, said: “Our focus is on restoring investor confidence in BSAM, serving our clients with excellence and assuring them of our commitment to provide them with the highest quality asset management products and services.”
Lane replaces Richard Marin, under whose leadership one of the subsidiary’s funds had to undergo a $1.6 billion bailout from its parent company. The losses in the High-Grade Structured Credit Fund were thought to have been caused by poorly-performing US subprime mortgage-backed securities. Before his deposition, Marin revealed that additional specialist staff had been brought in to ease the de-leveraging of the fund. He will now become an adviser reporting to Lane, and remains based in New York.
Lehman Brothers has not yet named Lane’s replacement.