Monday, January 7, 2008

Bear Stearns CEO Expected to Step Down

The Wall Street Journal states that Bear Stearns CEO James Cayne is expected to resign, but remain as chairman. To many pundits watching the situation at Bear Stearns, it was just a matter of time until this step was taken. Cayne has been under intense scrutiny since a series of articles appeared showing that he was playing golf and bridge while a major crisis sunk two hedge funds at his firm. The subprime credit crisis caused Bear Stearns to write off billions of dollars of bad debt while its stock price dived nearly 50 percent. An earlier summary (Is Your Investment Bank Executive a Doper) provides some more details.

WSJ: Bear CEO Expected to Step Down