EX-CEO OF BEAR STEARNS CONCEDES HE WAS CLUELESS IN 2007
In mid-July 2007, Bear Stearns CEO Jimmy Cayne wrote to Bear investors. In early August, he was quoted at length in a Bear Stearns press release. Cayne's mission (when he wasn't playing bridge) that July and August was critically important, and he knew it. In the wake of the shocking failure of two leveraged Bear Stearns hedge funds with heavy ties to the subprime mortgage market, the CEO need to find a tournequette to keep his company from bleeding to death.
Cayne cooly reassured investors and the markets that Bear's conservative tradition, strong risk management culture, and plan to pare its mortgage backed securities portfolio would assure Bear Stearns a speedy and full recovery from the summer's disasterous fund collapses. The balance sheet was strong. Bear Stearns was fine. The future, he claimed, was bright.
The CEO lied and lied. It didn't bother him one bit. As many people have observed, when push comes to shove, Jimmy Cayne was concerned only with the welfare of Jimmy Cayne.