CEO Cayne a Burden to Bear

Cayne's actions are in stark contrast to those of Morgan Stanley(MS Quote) CEO John Mack, who reported equally sour year-end numbers for his firm Wednesday.

Mack was prominently featured during Morgan Stanley's earnings call to describe the bank's misadventures in fixed-income trading. He reported the firm's first-ever quarterly loss and said it was "embarrassing." Mack took full responsibility for the firm's mistakes while speaking to analysts and investors who listened in to glean some guidance about the direction of the firm and outlook for Wall Street.

Mack's mea culpa may not save his job if the firm continues to run into trouble, but it was better received by investors than Cayne's absence. Mack's performance, and a $5 billion capital infusion from China, may have helped the firm's stock close higher. Shares of the second largest investment bank closed up 2.6% to $51.37 Thursday.

Both Cayne and Mack have opted to forego bonus pay this year, after each bagged about $40 million last year.

The outlook for both franchises is shaky, but with a much stronger international presence and the link-up with China, Morgan Stanley is on more solid ground.

Bear will have a much dicier time if the fixed-income market continues to be roiled as it was in November, when traders found it difficult to hedge mortgage bets as the spreads between the derivative instruments used to protect investments and the underlying securities widened out dramatically.