Bear Stearns chief to quit on mortgage woes
Bear Stearns CEO James Cayne plans to resign as the securities firm’s shares languish following unprecedented losses from the collapse of the subprime mortgage market, a person with direct knowledge of the matter said.
By Bloomberg |
NEW YORK: Bear Stearns CEO James Cayne plans to resign as the securities firm’s shares languish following unprecedented losses from the collapse of the subprime mortgage market, a person with direct knowledge of the matter said.
Cayne, 73, has begun notifying members of his board that he will step down as CEO and remain chairman of the company, according to the person, who declined to be identified.
He’s expected to be succeeded by president Alan Schwartz, 57, and an announcement may be made soon, the person said.
Cayne would join former Citigroup CEO Charles Prince and his counterpart at Merrill Lynch, Stan O’Neal, who were forced out after the sinking value of assets tied to mortgages eroded earnings. Bear Stearns’s fourth-quarter loss of $854 million was the first in its history and the company’s stock dropped 53% in New York trading during the past year, more than any Wall Street rival. “
Jimmy’s been so engaged with the company for a long time, he and Ace have been the personification of the company,” Bear Stearns board member Henry Bienen said on Monday. “Jimmy’s still a huge shareholder. It’s the board’s view that Jimmy would stay very involved.”
Cayne, 73, has begun notifying members of his board that he will step down as CEO and remain chairman of the company, according to the person, who declined to be identified.
He’s expected to be succeeded by president Alan Schwartz, 57, and an announcement may be made soon, the person said.
Cayne would join former Citigroup CEO Charles Prince and his counterpart at Merrill Lynch, Stan O’Neal, who were forced out after the sinking value of assets tied to mortgages eroded earnings. Bear Stearns’s fourth-quarter loss of $854 million was the first in its history and the company’s stock dropped 53% in New York trading during the past year, more than any Wall Street rival. “
Jimmy’s been so engaged with the company for a long time, he and Ace have been the personification of the company,” Bear Stearns board member Henry Bienen said on Monday. “Jimmy’s still a huge shareholder. It’s the board’s view that Jimmy would stay very involved.”
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
