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Bear Stearns CEO Will Step Down

Add Cayne to roster of victims of subprime collapse

By Jim O'Neill, Newser User

Posted Jan 8, 2008 7:11 AM CST

(Newser) – Add Bear Sterns CEO Jimmy Cayne's to the list of rolling heads in the subprime mortgage market collapse, reports the Wall Street Journal. Cayne, 73, has been the target of board and shareholder angst over the 53% drop in the bank’s stock last year—the largest of any of the big securities firms. He began informing directors yesterday of his decision.

CEO since 1993, Cayne will likely remain chairman as Bear attempts to recover from an $854-million fourth quarter loss. He is expected to be succeeded as CEO by Alan Schwartz, 57, Bear’s current president and a respected dealmaker. Citigroup CEO Charles Prince and Merrill Lynch CEO Stan O'Neal also lost their jobs due to the subprime debacle.

A businessman looks over papers outside Bear Stearns headquarters. (Getty Images)

This is an undated handout file photo of Bear Stearns Cos. Inc. chief executive James E. "Jimmy" Cayne. (AP Photo/HO/Bear StearnsCos. Inc., file) (Associated Press)

Bear Stearns headquarters. (Getty Images)

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Bear Stearns CEO Will Step Down

Add Cayne to roster of victims of subprime collapse

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84% OK JPMorgan buyout; chairman 'sad' over firm's demise

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Cayne bites the bullet with his company

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Add Cayne to roster of victims of subprime collapse

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OTHER STORIES ON OUR RADAR

subprime mortgages • Bear Stearns • James Cayne

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Bear Stearns Axes Prez Over Fund Fiasco

Subprime woes reach executive suite after hedge funds implode

First Major Financial Crisis Trial Begins

Bear Stearns execs accused of lying as funds imploded

Execs Were Paid $3B to Lay Credit Crisis Foundation

Wall Street chieftains were well rewarded for risks they took in 2003-07

Shareholders Rubber-Stamp Bear Selloff

84% OK JPMorgan buyout; chairman 'sad' over firm's demise

Bear Stearns Chairman Sells $1B Stake for $61M

Cayne bites the bullet with his company

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