Lehman replaces 2 executives after $2.8 billion loss

0 Comments | USA TODAY, June, 2008 | by Greg Farrell

NEW YORK -- Days after announcing that it will post a $2.8 billion loss in its fiscal second quarter, Lehman Bros. on Thursday replaced COO Joseph Gregory and CFO Erin Callan -- a woman who was named to her position just six months ago and was widely regarded as a rising star on Wall Street.

Gregory will remain at Lehman where he has been replaced as COO by Bart McDade III. Callan returned to the investment banking division, where she worked prior to her promotion. Ian Lowitt is the new CFO.

The shake-up is another sign that Lehman CEO Richard Fuld wants to reassure investors by responding quickly to negative developments. Earlier this week, Lehman shored up its capital base by announcing $6 billion in new equity.

The latest loss stemmed from a poor...