In a desperate move to regain credibility from investors, Lehman has demoted Erin Callan from the CFO position and removed Joseph Gregory from the COO post. Dick Fuld will remain as CEO. Herbert McDade will succeed Mr. Gregory and Ian Lowitt will take over for Ms. Callan.

Lehman Brothers announced that it expects to report a $2.8 billion ($5.14 a share) loss and increased the amount of capital it will raise to $6 billion.

The Wall Street Journal reports that Lehman is offering to open its books to at least one US pension fund in the hopes of garnering an equity investment.

Lehman Brothers may raise $3 - $4 billion in capital, according to "analysts". Those in the know are expecting Lehman to report the capital raising plan in conjunction with an average estimated loss of $300 million the week of June 16th.

Despite all the recent chirping among Wall Street big wigs proclaiming the credit crisis to be almost over, a decidedly bearish tone has returned to the markets. Witness the drubbing of Lehman's stock and the significant increase in put buying in Lehman's options today.

What can be said about JPM buying for BSC for just $2 per share. After hearing the news over the weekend it's certain most people thought it was a typo..."it HAS to be $20 per share right?" But after the news sank in, and you lifted your jaw off the ground, as an active trader/investor your next question had to be "who's next?"

Lehman Brothers Holdings Inc. Monday said the bank's liquidity position remains strong, as the fire sale of Bear Stearns to J.P. Morgan to prevent bankruptcy increased speculation that other big U.S. brokerages would come under pressure.

Bear Stearns is finished. If your prime broker freezes up, your trading freezes up, too. Every hedge fund, etc. that has BSC as a prime broker is doing whatever it can to get out of that relationship; everyone knows that everyone else is also trying to do that; so Bear Stearns is facing a high-finance version of a run on a bank. Its stock is down 48 percent today, from $160 nine months ago.

Today Lehman Brothers reported earnings for the 3rd quarter, results of which appear below. The report highlight of the Lehman Brothers earnings is Net Income of $887 Million and Net Revenues of $4.3 Billion.

Another sad story about a mortgage company collapse. Lehman Brothers said today that it will shut down BNC Mortgage LLC due to market conditions.

Bear Stearns Cos. said Jeffrey B. Lane, a Wall Street veteran and vice chairman of Lehman Brothers Holdings Inc., is taking over Bear Stearns' asset-management unit amid the recent meltdown of two prominent hedge funds, The Wall Street Journal reported Friday.