James “Jimmy” Cayne, the swaggering bridge-champion Wall Road CEO who led funding financial institution Bear Stearns throughout its rise and supreme fall that may function a touchstone for the monetary disaster of 2008, has died at age 87.
Cayne died Tuesday days after struggling a stroke, based on a report in Bloomberg.
One of many monetary world’s most colourful figures and as soon as among the many richest individuals within the U.S., Cayne rose from dealer to president after which CEO at Bear Stearns, which he helped form as a serious participant within the monetary and deal-making world. All of the whereas, he was a world-class bridge participant and sponsor whose groups received a number of North American championships.
Finally, his legacy was tied to each endeavors.
He presided over Bear for greater than 20 years as president and later as CEO, stepping down from an establishment that had been in enterprise since across the flip of the twentieth century. The funding financial institution’s demise got here after it gambled on dangerous mortgages often called subprime loans that may corrode the steadiness sheets of a few of finance‘s greatest names.
Bear Stearns merged with JPMorgan Chase in March 2008 in a bargain-basement deal at $2 a share, a worth that finally could be bumped as much as $10 however nonetheless represented a precipitous fall for one of many Road’s most honored names.
The collapse was the primary main part in a domino impact for Wall Road. Lehman Brothers’ failure on Sept. 15, 2008, was the largest occasion of the disaster, however a number of different companies closed or wanted to be rescued as a part of the worst financial downturn at that time because the Nice Despair.
As for Cayne, he was compelled out of his position as CEO in January 2008 after the agency recorded its first quarterly loss ever.
Cayne was faulted in the course of the disaster; he reportedly was taking part in bridge because the take care of JPMorgan was being negotiated, regardless that he was nonetheless an organization official.
Following the demise of Bear, Cayne light from view within the monetary world. He leaves behind his spouse, Patricia, two daughters and 7 grandchildren.