Lehman Brothers Holdings, Inc is replacing a pair of its top level managers in the same week it announced an expected $2.8 billion loss for the second quarter.

The fourth largest U.S. investment bank said on Thursday Herbert McDade will succeed Joseph Gregory as president and chief operating officer. Ian Lowitt will take over for Erin Callan as chief financial officer.

Monday, the bank said that due to continued challenging market conditions, it would report a $2.8 billion loss in the second quarter compared to a gain of $498 million.

McDade, 48, was previously the global head of the bank's Equities Division. Lowitt, 44, had been the company's co-chief administrative officer.

Shares of Lehman Brothers fell $1.05, or 4.22 percent to $22.70.