Whose next? Jimmy Cayne perhaps

Business Week Online argues that Bear Stearn's CEO, the erstwhile, very colorful Jimmy Cayne, may be the most vulnerable of the CEOs at top banks. Despite a lot of press about its troubled hedge funds and the smoking proclivities of Cayne, Bear had written off just $700 million until yesterday, when the firm announced a $1.2 billion write off for the 4Q. Bear moved aggressively into collateralized debt obligations; it was inevitable that it would pay a price. The move ensures a quarterly loss. Most assume its Level 3 assets are chock full of mortgage-related stuff. CreditSights estimates Bear might take a $3.2 billion charge in the fourth quarter. If it happens, Cayne might come under even more fire. Stay tuned.  

For more:
- here's an AP article on the writedown
- here's the Business Week Online article

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- Bear Stearns' small capital base, Cayne's golf game

Read more on: Jimmy Cayne l Bear Stearns