Lehmann Brothers replaces two executives

NEW YORK, June 12 (UPI) -- Financial giant Lehmann Brothers said Thursday it had fired a top executive and reassigned another after estimating second quarter net losses at $2.8 billion.

The global financial firm fired President and Chief Operating Officer Joseph Gregory, who will be replaced by Herbert (Bart) McDade III, the head of the firm's global equities.

Lehmann Chief Financial Officer Erin Callan will be replaced by Ian Lowitt, the firm's chief administrative officer, who will join the firm's executive committee, a company statement said.

Callan will move to the investment banking division "in a senior capacity," the bank's statement said.

Lehmann's Chairman and Chief Executive Officer Richard Fuld Jr. said firing Gregory, "my partner for over 30 years ... was one of the most difficult decisions either of us ever had to make."

On Monday, Lehmann Brothers said it would liquidate $6 billion of shares to see it through its second-quarter losses.