Update: No Cayne mutiny at Bear Stearns
The white flag is flying higher than everĀ at Bear Stearns (BSC). Chairman Jimmy Cayne sold his entire stake in the brokerage firm Tuesday, according to a Securities and Exchange Commission filing Thursday afternoon. The filing says Cayne sold 5.6 million shares at $10.84 apiece for a take of $60.8 million. Update: Cayne’s wife sold her 45,669 shares as well, the filing says.
Cayne was CEO of the firm until he was replaced in January following revelations that he was off playing bridge during an August liquidity crisis that nearly ran the firm out of business. Bear recovered from that episode, only to agree earlier this month to be sold to JPMorgan Chase (JPM) for a token sum to avoid a bankruptcy filing.
Even after the price on that deal was renegotiated Monday to $10 a share from $2, some investors held out hope that Cayne and investor Joe Lewis might lead a rebellion that would result in a still higher price. Thursday’s news that Cayne has dumped his stock, which led to a 4% drop in Bear stock in after-hours trading, seems to confirm that scenario was a pipe dream.
The motto of people like Cayne is “garab the money and run.” Of course the scenario you outline was a pipedream (or may be a potdream).
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People like Cayne only watch out for themselves. Don’t the shareholders remember he was playing bridge when they needed him? He doesn’t exactly sound like a selfless person to me.