Bear Stearns's Cayne to give up CEO post: report

(Reuters) - Bear Stearns Cos Inc (BSC.N: Quote, Profile, Research) leader James Cayne will relinquish his title as chief executive, but remain chairman, the Wall Street Journal reported on Monday, citing people familiar with the matter.

Reached by phone at his residence in Manhattan, Cayne declined to comment.

"I can't talk. I'm on the other line," Cayne told Reuters.

The 74-year-old Cayne has been under fire since two Bear-run hedge funds collapsed last summer. The fifth-largest U.S. investment bank also lost money in the fourth quarter -- its first loss ever -- on bad bets on risky subprime mortgages.

Cayne has been the subject of unflattering articles about his time playing golf and bridge while the company's key fixed-income business stumbled amid a meltdown in the subprime mortgage industry. The company took a $1.9 billion write-down in the quarter that ended November 30, reflecting the reduced value of subprime mortgage-related securities. Its quarterly net loss was $854 million.

 

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