Ace Greenberg

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

Did Bear Stearns executives lie?

Thu, 20 Mar 2008 07:59:57 -0400

Bear Stearns just can't win. The humiliation of the Fed-backed, JP Morgan Chase bailout was rank enough. Now comes word from Financial News Online that the SEC is taking a look at statements by executive committee chairman Ace Greenberg and CEO Alan Schwartz before the deal that said, outright, that the bank had no liquidity problems. No one really believed them, obviously, but did they lie? People have speculated. It will be interesting to see what comes of this. The irony is that JP Morgan Chase will be liable for all the damage.

For more:
- here's the Financial News Online article
- Schwartz likened to Skilling. Article

Related Articles:
Bear Stearns: A timeline of decline. Timeline
Can Bear Stearns be salvaged? Article
The future of Bear Stearns. Editor's Corner
Cayne joins rogues list. Article

Odd passing of the torch at Bear Stearns

Tue, 07 Aug 2007 06:59:56 -0400

The New York Times reports the scene at Bear Stearns when Alan Schwartz strode into the dining room filled with the top executives. He gave something of a rah-rah speech, and apparently the room burst out in applause for the new heir apparent to the throne currently occupied by Jimmy Cayne. Schwartz has been at the firm for more than 30 years. But now that Warren Specter has been forced out, he finds himself the proverbial man. The former college baseball player made a name for himself at Bear as a salesman and banker and seems like a throwback in some ways. It will be interesting to see how Cayne deals with this. Cayne's predecessor, the Grand Old Man Ace Greenberg, set up a rather long transition period that might have been uncomfortable for Cayne toward the end. But Cayne may now do the same. Perhaps he'll give up the reigns in stages in these troubled times.

For more:
- here's the article from the NYT