Lehman Shakes Up Management

Struggling investment bank Lehman Brothers (LEH Quote) said it named Eric Felder and Hyung Soon Lee as global co-heads of fixed income, and that Riccardo Banchetti and Christian Meissner have been appointed co-chief executives of Europe and the Middle East.

"We are making these changes, drawing on our deep bench strength to put new leaders with complementary expertise, outstanding risk management capabilities and excellent operating track records in new responsibilities," said Richard S. Fuld Jr., chairman and chief executive, in a statement Sunday.

Lehman said Jeremy Isaacs, who since 2000 has served as chief executive for Europe, the Middle East and Asia-Pacific, plans to retire, while Andrew Morton, global head of fixed Income since February, and Benoit Savoret, chief operating officer of Europe and the Middle East since May 2007, have decided to leave the firm "to pursue other interests."

According to media reports, Lehman is expected this week to announce a round of layoffs while it investigates different options to raise capital. The investment bank is reported to be in talks to sell off parts of its business and separately spin off billions of dollars of bad debt it holds on its books into a separate company.