Wednesday, January 09, 2008

Bear Stearns loses boss

Type your summary here

“Bear Stearns CEO steps down following Q4 loss of $854 million”

Jimmy Cayne, is set to walk from the bank, after a miserable year with substantial losses the first in its history and the company's stock dropped 57 percent in New York trading during the past year, more than any Wall Street rival. The 73-year-old will hand over the reins to Alan Schwartz, who is currently Bear Stearns' president. Mr Cayne told the bank's board that he hopes he can stay on as non-executive chairman and Bear Stearns directors are set to discuss this option.
Bear Stearns announced fourth-quarter losses of $850 million last month after the bank was forced to write down $1.9 billion on mortgage-related assets.

At the time, Mr Cayne took responsibility by waiving his annual bonus, but experts expect more losses to be made. Shares in Bear Stearns dropped 14 per cent in value over the past week and halved their worth over the past year.

Mr Cayne has been involved in the bank for 14 years and replaced Warren Spector as chief executive. Other top bosses to leave their posts in the wake of the credit crisis include Peter Wuffli at UBS, Chuck Prince at Citigroup, Merrill Lynch & Co., Stan O'Neal.

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