Bear Stearns Smoked

While drug-use allegations waft over Bear Stearns (BSC Quote), the company's shares are definitely not getting high.

Bear's stock tumbled 4% Thursday, coming within $10 of their early August credit-crunch low, after a report in the Wall Street Journal accused the 73-year old Bear CEO of smoking marijuana. The allegation, attributed to "someone who was there," is that Jimmy Cayne and an unidentified woman smoked pot in a men's room at a 2004 bridge tournament in Memphis, Tenn.

The claims came in the service of a story saying Cayne had been out of pocket while his firm suffered through a series of mishaps this summer tied to a pair of imploding hedge funds. ...