This headline says it all “Heads Roll at Lehman”

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The troubled Wall Street titan, Lehman brothers, has had a major shakeup at the top of the org chart, demoting the CFO and naming a new COO as the company tries to avert becoming the next Bear Stearns.

From the aptly-titled Market Watch article:

Lehman Brothers Holdings Inc. said Thursday that Chief Financial Officer Erin Callan and Chief Operating Officer Joseph Gregory are leaving their posts, becoming the latest victims of the credit crisis swirling across Wall Street.

Some analysts said Lehman’s management had lost credibility because earlier this year executives said the brokerage firm didn’t need to raise any more capital. But the credit crisis has taken another turn for the worse in recent weeks, putting intense pressure on Lehman.

“We believe the moves result from the company’s preliminary results, which included the first quarterly loss since going public, and its planned $6 billion capital raise, which has garnered investor criticism,” said Matthew Albrecht, analyst at Standard & Poor’s Equity Research, in a Thursday note to clients. “Headline risk will weigh on the stock.”