Bear Stearns co-president, co-COO quits (as hedge funds become worthless

[UpInArms]

Source: AP

NEW YORK - Bear Stearns Cos. said Sunday that co-President and co-Chief Operating Officer Warren Spector has resigned following the meltdown of two hedge funds that invested in risky mortgage-backed securities.

Alan Schwartz, who had been Bear Stearns' other co-president and co-COO, will become the sole president effective immediately, and Samuel Molinaro Jr. will assume the role of chief operating officer in addition to his current duties as chief financial officer, the firm said in a statement Sunday afternoon. Jeffrey Mayer, co-head of the fixed income division, will take Spector's seat on Bear Stearns' executive committee, the firm said.

"In light of the recent events concerning (Bear Stearns Asset Management's) High Grade and Enhanced Leverage funds, we have determined to make changes in our leadership structure," Chairman and Chief Executive James Cayne said. "I have every confidence in this team to continue Bear Stearns' 84-year legacy of success and profitable growth."

<snip>

But the collapse of the two hedge funds in the asset management unit that Spector oversaw put him and the firm under pressure. The funds filed for bankruptcy protection Tuesday, two weeks after the company told investors that one with assets of about $638 million was essentially worthless, and another worth about $925 million before taking on losses in March had lost more than 90 percent of its value.

Read more: http://news.yahoo.com/s/ap/20070805/ap_on_bi_ge/bear_stearns

[kurth]

1. Good for him to spend time with family and giant bank account

[swag]

2. When genius failed

again.

[tech3149]

3. It must suck being one of the smartest guy's in the room

and still can't do any better than FUBAR.

[aquart]

4. That's all they're looking at.?

Bear Stearns is rotten to the core.