The NYT has an interesting story on the eruption of high-level hostilities at what’s left of Bear Stearns. Seems old-timer Alan “Ace” Greenberg and Jimmy “Bridge Man” Cayne are fussing as their “fortunes have now sharply diverged.”
Mr. Greenberg, who cashed out the bulk of his Bear fortune through regular sales over the years, has just signed a lucrative agreement with JPMorgan to stay on as vice chairman emeritus. He will be paid 40 percent of the trading commissions he generates. And he recently began work on his memoirs.
Mr. Cayne, by contrast, has become a public piñata — blamed by Bear employees, a presidential candidate and others for the firm’s untimely end. His ties with Bear will be formally severed in June.
Although he still holds the title of chairman, he spends his days in relative seclusion, seeing few outside of the tight circle of his family, his two assistants and his lawyers. He personally lost about $900 million when Bear Stearns’s stock price collapsed.
Mr. Greenberg wonders about Mr. Cayne’s continued presence at Bear Stearns. “I don’t understand why he comes in,” Mr. Greenberg said. “He is not employed here anymore.”