Jimmy Cayne

Jimmy Cayne's near-death experience

Jim Kim — Mon, 04 Aug 2008 17:07:24 -0400

It has been a rough road for Jimmy Cayne. He nearly died of sepsis last year, only to recover in time to watch his firm implode, which subjected him to some really tough media coverage. The Wall Street Journal was especially tough, noting his pot-smoking tendencies among other things. Now, Cayne is speaking out. He granted Fortune a series of interviews that led to a lengthy article that portrays the 74 year old as out of touch, fiddling as Bear Stearns burned. "By the summer of 2007 this creature of instinct was out of his element." Few careers end on such a sordid note. This is fascinating stuff for those who still care. Could it happen again?

For more:
- here's the profile

Lehman Brothers once enjoyed stellar press coverage

Jim Kim — Fri, 20 Jun 2008 07:25:36 -0400

How far has Lehman Brothers fallen? TheDeal.com notes that it was once something of a media darling, sort of like Goldman Sachs is now. A lot of the press the company received was of the fawning nature. Many seemed to suggest that it could some day rival the big boys on the Street. As late as October 2007, the New York Times was writing about Richard Fuld as "The Survivor." Recall the take at the time was that Lehman Brothers was capably navigating through the minefields. Well, all that has changed. Still, Fuld hasn't taken the sort of media lashing that Jimmy Cayne, ex-CEO of Bear Stearns, did. (The Wall Street Journal reported he was a regular pot smoker for Pete's sake!) For that, Fuld can be thankful.

For more:
- here's the article from TheDeal.com

Wall Street can't knock Grasso out

Jim Kim — Tue, 03 Jun 2008 07:17:11 -0400

This seems like it happened a long time ago: Former NYSE chief Dick Grasso was locked in a do-or-die struggle with then state Attorney General Eliot Spitzer over his eye-catching take of $185 million. The New York Times points out that Grasso may have put some kind of curse on his adversaries. Just look at what has happened to Spitzer--a humiliating story to say the least. And then there's Jimmy Cayne and Stanley O'Neal, both whom were on the board that approved much of Grasso's pay and witnessed his fall from grace. The Times says Grasso, who faces a court date this week, has a "a growing chance that he may keep the vast portion of his payout."

For more:
- here's the article

End of an era: Bear Stearns passes away

Jim Kim — Thu, 29 May 2008 20:53:32 -0400

What can you say in Bear Stearns' obituary that hasn't already been said before. This three-part Wall Street Journal article pretty much said it all as far as a lot of people are concerned. There were deals that could have been struck--perhaps one with Kohlberg Kravis Roberts--and opportunities to keep the firm alive. But in the end, Bear Stearns bit the dust hard. The end was anti-climactic. Jimmy Cayne, of all people, presided over a short meeting with Alan Schwartz at his side, according to the New York Times. He was man enough to apologize. "The audience of employees, directors and investors, many of whom he has known for over 30 years and who lost large parts of their savings and fortunes, received his remarks in a dead silence," the Times notes.

For more:
- here's the New York Times article

Cayne vs. Greenberg at Bear Stearns

Wed, 07 May 2008 06:59:58 -0400

Jimmy Cayne and his predecessor Ace Greenberg worked together for 40 years at Bear Stearns. Toward the end, many saw Ace, one of Wall Street's Grand Old Men, as a mentor to Jimmy, who was destined to take over as CEO. The truth was that the relationship was always uneasy. And now, after the near-collapse of the firm, an outright feud has erupted, according to the New York Times. Ace says Jimmy ignored his advice as the credit meltdown hit home. Cayne says that's not so. He has noted to colleagues that it was Ace who chaired the risk committee. This much is clear: Ace seems to have fared a lot better. He has been retained, at 80, as vice chairman emeritus at JPMorgan Chase. Jimmy, as the Times notes, has become "a public piñata," batted around by all. I still recall that incredible Wall Street Journal piece that recounted some of his pot-smoking exploits.

For more:
- here's the Times article

Will CEO turmoil continue?

Fri, 18 Apr 2008 06:59:56 -0400

We've seen a lot of high profile CEO lose their jobs. Stanley O'Neal. Chuck Prince. Jimmy Cayne. But at least one MarketWatch commentator thinks at least two other fairly big name CEOs ought to be similarly shown the door. He says that Ken Thompson, of Wachovia, and Kerry Killinger, of Washington Mutual, "were exposed as overhyped pedestrian CEOs this week." Ouch! PR folks, do something. Killinger was rapped for the $1.1 billion loss and the required dilutive $7 billion capital infusion from private equity investors. Thomson was pilloried for the disastrous Golden West purchase. The jury remains out on several CEOs, including Ken Lewis of Bank of America, who's betting big on Countrywide.

For more:
- here's the commentary

Cayne sells stake in Bear Stearns for a pittance

Fri, 28 Mar 2008 07:59:58 -0400

Jimmy Cayne, ex-CEO of Bear Stearns, has taken a huge hit. His holdings in Bear Stearns were worth more than $1 billion a year ago. The New York Times reports he just sold his entire stake for just $61 million. Ouch! This seems to be symbolic more more than anything, and a capitulation. Obviously, he holds out very little hope that a higher bid will emerge--either that, or he doesn't care. His downfall will long be remembered on Wall Street, as will that memorable page one Wall Street Journal article that recounted his pot-smoking tendencies. He's still a wealthy man, but this is a bitter end to a colorful career. Many at Bear place the blame on him. You have to wonder what his mentor, Ace Greenberg, is thinking.

For more:
- here's the New York Times article

Related Articles:
Bear Stearns execs cashed out in December. Article
Bear Stearns execs pay in harsh spotlight. Article
The future of Bear Stearns. Article
Cayne joins rogues list. Article
Open season on Cayne? A pot smoker? Article

Bear Stearns execs cashed out in December

Mon, 24 Mar 2008 07:59:56 -0400

One of the challenges of being a top executive is cashing out of large holdings of stock. Most insider sales are done on strict schedules with much vetting by the board. You cannot blame execs for wanting to diversify a bit. But there are moments when the timing makes for a PR problem. Not that anyone is crying for Bear Stearns execs. The top dogs sold in droves in December before the big collapse. MarketWatch notes former CEO Jimmy Cayne sold 172,621 shares worth $15.4 million. President Alan Schwartz sold 67,900 shares worth just over $6 million (Thomson).

For more:
- here's the article

Related Articles:
Former NYSE seatholders cash out. Article
Joe Lewis's losing bet on Bear Stearns. Article

Bear Stearns' weird stock trip

Thu, 20 Mar 2008 07:59:56 -0400

Why is Bear Stearns stock trading above the $5 per share range? The deal with JP Morgan Chase valued the company at $2 per share. MarketWatch floats one theory: Bond holders, desperate for the JP Morgan Chase deal to go through, are snapping up equity just so they can vote for the deal. Bankruptcy would be the worst-case for them. Of course, many shareholders are upset at what they see as a sweetheart deal. Joseph Lewis has been openly critical; he and ex-CEO Jimmy Cayne are said to be looking for a white knight. The stock movement may reflect the market's view that the deal for JP Morgan Chase was too good to be true and that a richer deal will somehow materialize.

For more:
- here's the MarketWatch article
- here's a New York Post article on Lewis and Cayne's efforts

Related Articles:
Joe Lewis' losing bet on Bear Stearns. Article
What to make of the Joe Lewis play for Bear Stearns. Article
Joe who? Takes a stake in Bear Stearns. Article

Bear Stearns execs pay in harsh spotlight

Thu, 20 Mar 2008 07:59:55 -0400

It's true that Jimmy Cayne, Alan Schwartz and the other top dogs had a lot of "skin in the game." They were among the biggest shareholders of Bear Stearns. Cayne's nearly 6 million shares have plunged in value from nearly $1 billion to just $35 million, according to Business Week Online. But the magazine also notes that Cayne and company benefited from a very lucrative pay package in the years leading up to their implosion. In hindsight, the pay for performance metrics, so praised at the time, were based on a fairly flimsy house of cards. That raises a question: Should the millions upon millions in bonuses be given back? You could make a case, but it'll never happen.

For more:
- here's the Business Week Online article

Related Articles:
Will JP Morgan keep Alan Schwartz? Article
Man on the hot seat: James Cayne. Article
Rumor: Bear Stearns looking to replace Cayne. Article
Bear Stearns shuffles executives. Article