Lehman Sacks 2 Top Execs

Lehman Brothers has replaced two of its top executives in the days prior to the formal release of its fiscal second-quarter results. Joseph Gregory has been replaced as president and chief operating officer by Herbert H. McDade III, while Erin Callan has been forced out as chief financial officer after serving in the position for only seven months. Her replacement is Ian Lowitt, currently the co-chief accounting officer. Mr. McDade was global head of Lehman's equities division. According to Lehman's statement, Ms. Callan will be rejoining the investment banking division in a senior capacity. On June 9, Lehman said it expected a loss of $2.8 million for its second fiscal quarter, which ended May 31. Between June 6 and June 12, Lehman's stock price dropped by $10.51, closing at $22.70 per share. As of 11 a.m. June 13, the day after the sackings were announced, Lehman's stock was up $2.22 on the day to $24.92.