Erin Callan, the former CFO of Lehman Brothers, is leaving the firm to join Credit Suisse, people with knowledge of the matter say.
Callan will be senior relationship executive and coordinate all the firm's efforts with hedge
In June Callan, along with chief operating officer, Joseph Gregory, was demoted to amid a persistent clamor over the company's weak performance.
Meanwhile, executives inside Lehman Brothers say the firm may be weighing a private deal, but doing one now will be difficult.
Speculation on privatizing Lehman has picked up following drops in the stock price over the past few months. But a sale to private equity may be difficult to pull off, people inside the firm said, because of current market conditions and sector liquidity concerns. (See video)
There is also speculation that Neuberger Berman, the money management firm bought by Lehman in 2003, may get split off.
The company's shares closed down more than 14 percent on Monday. It is the lowest level for the stock since August 1999. Lehman's shares have fallen about 81 percent so far this year.
The decline in investment bank shares had David Trone, an analyst with Fox-Pitt Kelton, say Monday the only way to stop Lehman's 79 percent stock dive this year is to sell the company to a buyout consortium.
"This would eliminate the disconnect between Lehman's true financial condition and current stock price by eliminating the run-on-the-bank discount," he said.
The company has been the subject of false rumors in the past. The Securities and Exchange Commission is investigating whether investors have looked to profit by spreading rumors to push down the company's shares.
-- Wire services contributed to this report.