Lehman Sends Top Brass Packing

Updated from 3:43 p.m. EDT

Lehman Brothers(LEH Quote) ousted CFO Erin Callan on Thursday as part of a top-level management shake-up three days after it warned of a big second-quarter loss.

Lehman replaced Callan, who spent just five months on the job, with Ian Lowitt, who oversaw Callan's day-to-day responsibilities in his most recent role as co-chief administrative officer. It also replaced President and Chief Operating Officer Joseph Gregory with Herbert "Bart" McDade III. McDade was in charge of Lehman's equities division and also has a background in fixed-income and corporate bonds.

Lehman Chairman and CEO Richard Fuld did not explicitly give a reason for the changes in a statement. But he noted the "challenging times" the firm faced and expressed remorse for the fate of his long-time lieutenant Gregory. ...