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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Read more on: Jimmy Cayne l Bear Stearns