DarrylS

Economy is not my strong suit, but something seems wrong here, the US bails out Bear Stearns which looks like it may be partially do to the incompetence of Cayne, and then Cayne sells out for 61 Million.. this seems wrong..he can buy a lot of high grade cannabis for this much..

http://www.247wallst.com/2008/03/bear-stearns--3.html

James Cayne, chairman and, before he was asked to leave, CEO of Bear Stearns (NYSE: BSC) sold all of his holdings in the firm for $61 million, according to filings with the SEC. We noted today that Cayne sold 5.66 million shares at $10.84 apiece on March 25.

When the shares were over $170 last year, he was doing even better.

Cayne developed a reputation of being busy playing golf and had been accused publicly of smoking pot while his firm was falling apart. Cayne also plays bridge, and for once he was keeping his eyes on both his cards and the money in the center of the table.

The chairman probably reasoned that $10 was as good as it would get for Bear Stearns. There has been a lot of wild talk about a higher offer. Now Congress wants to look into the Fed's role of supporting JP Morgan (NYSE: JPM) in its buy-out of Bear. They don't understand that the central bank now has an M&A department

The whole deal still has risk in it. JP Morgan has gotten its hands on the BSC headquarters and enough of the company's shares to close a deal. But, investors are already filing suits saying that they were robbed when the big money center bank offered $2 for the broker and then upped it to $10. It did look like a bank job done under the cover of darkness, or, in this case

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weswelker#83

I doubt he's going to need food stamps.

sdaniels7114

I'd really like to understand why it is that the American tax payer is taking on an unnecessary risk to bail this company out yet this guy giving up his $60 million+ kiss goodbye isn't part of the deal.

I'm of the opinion that its non-partisan, IE it didn't matter who was in charge, and I know this was a FED decision, not one made by pure politicians. I think I'd have a much better understanding of the fundamental nature of our world if I understood why this guy isn't walking away just reasonably comfortable. Too bad I'll prolly always have to work for a living and will never have the time needed to understand this.

otis p. driftwood

He's selling his stock. When Bear was worthless he lost something like 850 MILLION DOLLARS in the course of a year. Out of that, he salvages 61 by selling his stock on the open exchange, and you guys are having fits?

I guess I just don't understand that.

Now, there's no question he's a lousy CEO and really should've been fired, but even if he was fired, it's still his stock to sell or not sell.

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weswelker#83

What pisses me off is this stuff like is about to come up on bloomberg..

"how much did he lose?"

that's strait up bs he lost NOTHING! he never paid for the f'n stock in the first place. it was compensation!

otis p. driftwood

And a year ago he had almost a billion dollars of it. Now he doesn't. If it was me, I'd be pissed about losing that much money, wouldn't you?

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Terry Glenn is a cowgirl

i WOULD HAVE TO ASSUME THAT THIS IS ELEMENTRY...

DarrylS

How much can you legitimately spend, 61.5 million is a lot of greenbacks.. what do you need in your life after you run a company into the ground.

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otis p. driftwood

So you think there should be a limit on how much a person can earn or make?

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sdaniels7114

If us taxpayers are involved in undoing a particular CEO's monumental fu(kup, there needs to be serious limits.

Guys like Warren Buffet, Ted Turner or Bill Gates have never once asked the US taxpayer to pull their fat out of the fire. Those three are welcome to make as much as they can.