Post by unlawflcombatnt on Aug 6, 2007 2:38:51 GMT -6
Bear Stearns co-president, co-COO quits
By JOSEPH ALTMAN, AP Business Writer
8/5/07
"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....
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.
Both funds were squeezed after Bear Stearns made wrong-way bets on the home mortgage market and was caught as loans to risky borrowers began to default. Bonds backed by home loans and other similar investments have lost value amid rising homeowner defaults as the housing market enters its third year of decline...."
The entire article can be found at
Bear Stearns co-president, co-COO quits
By JOSEPH ALTMAN, AP Business Writer
8/5/07
"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....
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.
Both funds were squeezed after Bear Stearns made wrong-way bets on the home mortgage market and was caught as loans to risky borrowers began to default. Bonds backed by home loans and other similar investments have lost value amid rising homeowner defaults as the housing market enters its third year of decline...."
The entire article can be found at
Bear Stearns co-president, co-COO quits