The chief financial officer and chief operating officer are to leave their posts at Lehman Brothers.
Lehman’s CEO, Richard Fuld made the decision to remove Erin Callan and Joseph Gregory from their posts and referred to it as one of the “most difficult” decisions he has ever had to make
The mortgage slump and worldwide credit crunch have taken their toll on the US investment bank. The 14 year old firm struggled this year, suffering its first quarterly loss of $2.8bn (£1.4bn), marking a stark contrast with the $1.3bn it made in the same period last year.
The bank has had to raise extra funds of $4bn this year to combat the credit crisis and has seen its shares slump by over 50%.
Ian Lowitt will replace the previous chief financial officer Callan, who will now fill a position in the firm’s investment banking division. Former chief operating officer, Gregory, is to be replaced by Herbert McDade.
The company’s share values have however fallen a further 6% in early trading today to $22.22, highlighting the fact that this will be no quick fix.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till