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

Cayne bites the bullet with his company
By Jim O'Neill,  Newser User
Posted Mar 28, 2008 6:47 AM CDT
A man enters Bear Stearns headquarters, Wednesday, Jan. 9, 2008 in New York.   (AP Photo/Jin Lee)
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(Newser) – Bear Stearns Chairman Jimmy Cayne yesterday became the poster boy for the company’s fall from grace, selling his one-time $1 billion stake in the investment bank for a mere $61.3 million, reports the Wall Street Journal. Cayne sold 5.7 million shares he’d acquired for $10.84 each, a far cry from the $159 they were worth last April.

The share has traded as low as $2.84 in the two weeks since the company agreed to be rescued from almost certain failure by JPMorgan and the Federal Reserve. Cayne is said to have sold for personal reasons: he and his wife are buying a $26-million apartment in the newly renovated Plaza Hotel in New York.