James Cayne

James E. (Jimmy) Cayne (born February 14, 1934) is an American businessman, a former CEO of Bear Stearns (1993–2008), and bridge player. After losing about one billion dollars in net worth from the collapse of Bear Stearns' stock, he sold his entire stake in the company for 61 million US$. [ [http://news.bbc.co.uk/1/hi/business/7317878.stm Bear Stearns chairman sells stake] ]

Early life and career

Cayne grew up in New York City. His father was a patent attorney. [Landon Thomas, Jr., [http://query.nytimes.com/gst/fullpage.html?res=9C02E6D81F30F93BA15750C0A9659C8B63 "Distinct Culture at Bear Stearns Helps It Surmount a Grim Market"] , "New York Times", March 28, 2003] Cayne attended but didn't complete his studies at Purdue University. [ [http://quote.bloomberg.com/apps/news?pid=nifea&&sid=aIMI5Fx8d9sM "Harvard and Wisconsin Tie in Turning Out the Most CEOs in U.S."] , "Bloomberg News", July 30, 2006]

His first job was as a traveling salesman selling copiers in the Midwest.Landon Thomas, Jr., [http://www.nytimes.com/2007/06/29/business/29bear.html?_r=2&oref=slogin&oref=slogin "Salvaging a Prudent Name"] , "New York Times", June 29, 2007] He subsequently sold scrap iron and municipal bonds. [Allen R. Myerson, [http://query.nytimes.com/gst/fullpage.html?res=9F0CEEDC1E3DF937A25754C0A965958260 Careful Player Moves Closer To the Top at Bear Stearns"] , "New York Times", July 14, 1993] In 1969, in New York City, he was playing bridge full time when fellow bridge-player Alan Greenberg, then a relative novice, hired him as a stockbroker at Bear Stearns; he was with that company until its demise. Cayne became president in 1985, CEO in 1993, and (while continuing as CEO) the chairman of the board in 2001.

In July 2007, Cayne was absent from New York at a bridge tournament when Bear Stearns' hedge funds collapsed. This event was one of the causes of the subsequent global financial credit crisis. [Kate Kelly, [http://online.wsj.com/article/SB119387369474078336.html?mod=home_whats_news_us "Bear CEO's Handling Of Crisis Raises Issues"] , "Wall Street Journal", November 1, 2007] In March 2008, as Bear Stearns was on the verge of bankruptcy, Cayne played bridge at a tournament in Detroit. [Kate Kelly, [http://blogs.wsj.com/deals/2008/03/14/where-in-the-world-is-bears-jimmy-cayne-playing-bridge/ "Where in the World is Bear’s Jimmy Cayne? Playing Bridge."] , "Wall Street Journal", March 14, 2008]

Cayne has been the subject of various press since the Bear collapse, [ [http://dealbreaker.com/2008/03/how_to_think_about_how_a_potsm.php How to Think About How a Pot-Smoking, Card-Shark College Dropout Brought Down an 85-Year-Old Firm] ] including the fact that he has sold his stake in the company for 61 million dollars after its crash. [ [http://news.bbc.co.uk/1/hi/business/7317878.stm Bear Stearns chairman sells stake ] ]

On March 14, 2008, Charlie Gasparino of CNBC reported that the value of Cayne's holdings in Bear Stearns had declined from $993 million to significantly less than $200 million in the wake of Bear Stearns liquidity crisis. Just days later Bear Stearns came to agreement with competitor JP Morgan for a full buyout at only $2 share, roughly $236 million for the entire firm. At the time, Cayne had significant exposure to the company's stock, with most of his net worth tied up in shares that he had not yet exercised. It is estimated that the value of Caynes' holdings had dropped to less than $15 million as a result, decisively removing him from the wealthiest individuals in the nation. On March 27, 2008, it was announced that Cayne sold his entire stake in Bear Stearns, over 5.61 million shares, for $10.82 a share.cite web | title = "Bear Stearns' Cayne sells over $60M in stock" | url = http://money.cnn.com/2008/03/27/news/newsmakers/cayne_stock/index.htm | author = David Ellis | date = 2008-03-27 | publisher = CNNMoney.com | archiveurl = http://www.webcitation.org/5WduTA0rm | archivedate = 2008-03-27] This stake was sold prior to the vote on the renewed bid by JP Morgan for Bear Stearns.

Personal

Cayne is a world-class bridge player, having won more than a dozen North American championships, most recently the Reisinger Board-a-Match Teams (one of the major North American bridge championships) in November, 2007. [ [http://www.acbl.org/nabc/SanFrancisco2007/results/NABC073.HTM "NABC San Francisco 2007 Results"] ] He is ACBL Grand Life Master [ [http://web2.acbl.org/as400/mpraces/mpAwards/lifetime/grandlms.htm ACBL Grand Life Masters] ] and World Bridge Federation World Master, [ [http://www.worldbridge.org/people/person.asp?qryid=13178 World Bridge Federation profile] ] and has represented the United States in the Bermuda Bowl world championship in 1995. His fellow bridge enthusiasts claim that Cayne sometimes smokes marijuana at the end of tournament sessions. [ [http://money.cnn.com/galleries/2007/fortune/0712/gallery.101_dumbest.fortune/30.html "101 Dumbest Moments in Business"] from "Fortune"]

In March 2002, "The New York Daily Sun", a new daily newspaper, announced that he would be writing a bridge column for the paper. [Patrick McGeehan, [http://query.nytimes.com/gst/fullpage.html?res=9E0DEEDE173BF937A15750C0A9649C8B63&n=Top%2fReference%2fTimes%20Topics%2fPeople%2fC%2fCayne%2c%20James%20E%2e "Private Sector; Call Him a Specialist In Bridge Financing"] , "New York Times", March 24, 2002]

In 2005, Forbes magazine ranked him as #384 among the 400 richest Americans, with an estimated net worth of $900 million. He is married and has two children. [http://www.forbes.com/lists/2005/54/UBGJ.html #384 James Cayne] , Forbes Magazine top 400 wealthiest Americans, 2005] On February 15, 2008, the Caynes closed on two 14th-floor condominium units overlooking Central Park in New York's Plaza Hotel for $27.4 million. [ [http://a836-acris.nyc.gov/Scripts/DocSearch.dll/PName ACRIS Main Options] ] Mr. Cayne is also a veteran of the United States Army.

During the collapse of Bear Stearns, Cayne was competing in a bridge tournament in Nashville and was unreachable by email or cell phone, a fact for which he received much criticism. [ [http://online.wsj.com/public/article_print/SB119387369474078336.html Bear CEO's Handling Of Crisis Raises Issues] ]

Wins

* North American Bridge Championships (13)
** Spingold (2) 1989, 1990
** Reisinger (4) 1977, 1988, 1992, 2007
** Grand National Teams (1) 1994
** Men's Board-a-Match Teams (2) 1969, 1988
** Jacoby Open Swiss Teams (2) 1996, 2005
** Master Mixed Teams (1) 1966
** Life Master Men's Pairs (1) 1969
* United States Bridge Championships (1)
** Open Team Trials (1) 1995
* Other notable wins:
** Maccabiah Games (1) 1981
** Cavendish Invitational Teams (1) 1986
** Cavendish Invitational Pairs (1) 1982
** Goldman Pairs (1) 1968

Runner-ups

* Olympiad Mixed Teams (1) 1974
* Olympiad Mixed Pairs (1) 1974
* North American Bridge Championships (15)
** Vanderbilt (3) 1983, 1997, 1998
** Spingold (3) 1994, 1997, 2006
** Reisinger (4) 1981, 1993, 1994, 1996
** Open Board-a-Match Teams (1) 1995
** Men's Board-a-Match Teams (1) 1989
** Mixed Board-a-Match Teams (1) 1996
** Life Master Pairs (2) 1969, 1973
* United States Bridge Championships (1)
** Open Team Trials (1) 1998
* Other notable 2nd places:
** Now! Invitational Pairs (1) 1981
** Cavendish Invitational Pairs (1) 1976

References