James Cayne—former CEO of Bear Sterns makes the list
Number 8 named—James Cayne—former CEO Bear Sterns was one of the largest investment banks and securities trading and brokerage firms in the world prior to its sale to JP Morgan Chase in 2008. Former CEO, James Cayne lost nearly a $1 billion (that's billion, with a "b") when Bear Sterns collapsed. The real kick in the pants is that he is still worth some $600 million. He diversified his portfolio early in the game and was able to engage his golden parachute when the Bear Sterns plane went down in a massive fireball.
Now that people can talk freely about Cayne, many are opening up with their criticism. Ace Greenburg, Bear Sterns CEO prior to Cayne, says, "He was a one man show; he didn't listen to anybody." Other members of the financial market like Eric Halperin of the Center for Responsible Lending noted that Bear Sterns was at the center of some of the most abusive sub-prime lending practices.
Employees were getting nervous a few months before the collapse as media reports circulated regarding Cayne's lack of attention to his duties. Cayne was said to be out of touch with the seriousness of Bear Sterns' issues, spending much of his time on the golf course or playing bridge. Cayne insisted that he was intensely focused on the job. He even sent out a memo to employees in an effort to reassure them, saying, "Don't be distracted by the noise. I am certainly not." And he signed it, "Jimmy." But reports are that he continued his game play right up through the final months, even as hedge funds collapsed and chaos ensued. One stock that went to Bear Sterns in a fire sale for $10 a share had sold only months earlier for over $133 a share. This is an example of what critics say should have sent up a clear warning for Cayne to redirect the company.
During the presidential campaign, both McCain and Obama spoke out about the devastating greed of Wall Street fat cats like Cayne and Mozilo (of Countrywide). .
After the collapse, Cayne told Fortune Magazine that a conspiracy of unnamed financial sharks was responsible, and he hoped authorities would nail the guys who did it. But Bear Sterns had a solid track record of weathering hard times. The firm didn't lay off a single worker during the Great Depression. Who was at the helm when this legendary corporation failed causing untold heart break for thousands of employees and shareholders? James Cayne --number eight on the list of the top ten culprits of the collapse.
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