Jimmy Cayne, the previous Bear Stearns chief govt who turned notorious for taking part in bridge and reportedly smoking marijuana fairly than maintaining a tally of the monetary behemoth he ran, died Tuesday at 87, The Put up has confirmed.
Cayne’s daughter Alison Cayne confirmed his dying, however declined additional remark.
Cayne led the funding financial institution, buying and selling and brokerage agency from 1993 till he left the helm in 2008 because it faltered amid the monetary disaster.
Below Cayne, Bear Stearns in 2007 at one level swelled to the fifth-largest securities agency earlier than almost going bankrupt in 2008. At its apex in 2007, Bear’s inventory was $170 per share, with Cayne hauling in $40 million a yr.
However Cayne’s management got here underneath scrutiny close to the tip of 2007 as experiences emerged he’d spent huge stretches of time away from the workplace pursuing hobbies together with bridge and golf as key components of the enterprise teetered. He additionally was dogged by experiences within the Wall Avenue Journal that he smoked marijuana recreationally — one thing he denied.
Within the ultimate quarter of 2007, Bear hemorrhaged money — reporting an $854 million loss as its bets on the subprime mortgage market faltered.
Longtime deputy Alan Schwartz changed Cayne as CEO and Cayne was appointed chairman in January 2008.
In March 2008, when Bear managed to hatch a deal for JPMorgan to purchase its struggling enterprise, Cayne was but once more away from the workplace — enjoying playing cards at a bridge event in Detroit. The US authorities backed the deal that bought Bear to JPMorgan for $10 per share.
Although Cayne’s Wall Avenue days ended on a bitter notice, his early days in finance have been marked by success. Cayne, born and raised in Illinois, struggled to seek out employment after dropping out of school.
He labored as a cab driver and a copier salesman earlier than transferring to New York Metropolis the place he aimed to play bridge professionally. Whereas his bridge profession didn’t take off, Cayne did safe a job as a municipal bond salesman at Lebenthal & Co.
Just a few years into his time at Lebenthal, Cayne met former head of Bear, Alan “Ace” Greenberg, who employed him as a dealer, the place Cayne spent the remainder of his profession.
After leaving Bear, Cayne spent his ultimate years enjoying bridge competitively — and successful a number of championships.
Cayne is survived by his spouse, two daughters and 7 grandchildren.
With Put up wires
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