Bear Stearns has fired its No. 2 and once-likely successor as CEO in the wake of the collapse of two company hedge funds worth more than $1B, reports the Wall Street Journal. Warren Spector, the most high-profile casualty to date in the subprime-mortage crisis rocking Wall Street, is a mortgage and trading expert who oversaw the unit that housed the two failed funds.
Spector had been criticized for his handling of the crisis, including his failure to cancel a week-long trip to Tennessee to play in a bridge tournament as it was unfolding. It's unclear how effective his firing will be in reassuring investors spooked by the crash; Bear Stearns stock has plummeted 28% since the beginning of June, and dropping 6% on Friday alone.