Breaking finance and business news, tax information, jobs and more for finance directors and senior finance professionals.

The global investment bank announced that Bart H. McDade III will succeed Joseph Gregory as president and chief operating officer.

Ian Lowitt will succeed Erin Callan as the firm’s chief financial officer and join the firm’s executive committee. The management changes are effective immediately.

Expected net losses 

The news comes just days after the firm announced on 9 June an expected net loss of approximately $2.8 billion for the second quarter ended 31 May 2008.

For the first half of fiscal 2008, Lehman Brothers expects to report a net loss of approximately $2.3 billion, compared to net income of $2.4 billion for the first half of fiscal 2007. 

For the first six months of fiscal 2008, the firm expects to report net revenues of $2.8 billion, compared to $10.6 billion for the first half of fiscal 2007.

Lehman Brothers has outlined plans to raise around $6 billion in additional capital.

“Joe has been my partner for over 30 years and has been a driving force behind who we are today and what we have achieved as a Firm. This has been one of the most difficult decisions either of us has ever had to make,” Richard S. Fuld, Jr., Lehman Brothers’ chairman and chief executive officer, said. 

Callan, who has served as the firm’s chief financial officer since December 2007, will be rejoining the investment banking division in a senior capacity.

Joe McDade 

McDade, 48, was the global head of the firm’s equities division, a position he has held since June 2005. He served as global head of the fixed income division from 2002 to 2005 and as co-head of the fixed income division from 2000 to 2002.

He is a member of Lehman Brothers' executive committee and joined the firm in 1983 in corporate bond trading.

McDade was named head of the firm's corporate bond department in 1991. In 1998, he was named global head of debt capital markets in the investment banking division. He received a B.A. from Duke University and an M.B.A. from the University of Michigan.

Ian Lowitt 

Lowitt, 44, has been the firm’s Co-CAO since October 2006. In this role, he was responsible for the global oversight of corporate real estate, expense and sourcing services, finance, operations, productivity and process improvement, risk management, and technology.

Lowitt was previously the CAO of Lehman Brothers Europe. He has also served as global treasurer and global head of Tax. Before becoming global treasurer, he was the firm's head of strategy and corporate development.

Lowitt joined Lehman Brothers in 1994 from McKinsey & Company. He has a B.Sc. and an M.Sc. from the University of the Witwatersrand. He also has a B.A. and an M.Sc. from the University of Oxford, which he attended as a Rhodes Scholar.

Related links 

• Lehman Brothers