This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bear Stearns Co-President Resigns

Bear Stearns (BSC) said Sunday that Co-President and Co-Chief Operating Officer Warren Spector has resigned following the meltdown of two of its hedge funds.

As part of a management overhaul, Alan Schwartz, who had been sharing duties with Spector, will become the company's sole president. Chief Financial Officer Sam Molinaro will assume the additional title of chief operating officer, Bear said.

In addition, Jeffrey Mayer, co-head of the fixed income division, was named to the Wall Street bank's executive committee.

Spector, who also resigned as a Bear board member, had overseen the asset management division that housed the two hedge funds that fell apart earlier this summer after making big bets on the subprime mortgage market.

"In light of the recent events concerning BSAM's (Bear Stearns Asset Management's) High Grade and Enhanced Leverage funds, we have determined to make changes in our leadership structure," said Chairman and CEO James Cayne in a statement. "These promotions reflect and acknowledge the depth of talent in our senior management team."

On Friday, Standard & Poor's cut the outlook on Bear's credit rating to negative from stable. The bank held a conference call to address the cut, during which Molinaro told listeners that the credit market is about as bad as he has seen it in two decades. That sent Bear shares sliding 6% on the day, and contributed to a broader selloff in the market.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
AAPL $132.42 0.78%
FB $81.00 0.65%
GOOG $541.80 -0.13%
TSLA $245.80 0.07%
YHOO $43.53 -0.33%


DOW 18,251.14 -34.60 -0.19%
S&P 500 2,129.40 -1.42 -0.07%
NASDAQ 5,096.9320 +6.1380 0.12%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs