James Cayne
| James Cayne | |
|---|---|
| Born | February 14, 1934 |
| Nationality | United States |
| Education | Purdue University (did not finish) |
| Occupation | Businessman |
| Known for | CEO of Bear Stearns |
| Net worth | $61 million (2009) |
| Spouse(s) | Patricia Denner |
| Children | 1 |
| Family | Richard C. Perry (nephew) |
James E. "Jimmy" Cayne (born February 14, 1934) is an American businessman, a former CEO of Bear Stearns. In 2006 he became "the first Wall Street chief to own a company stake worth more than $1 billion" but he lost most of that in the 2007–2008 collapse of Bear Stearns' stock and sold his entire stake in the company for $61 million.
Cayne grew up in Evanston, Illinois. His father was a patent attorney. Cayne attended Purdue University, but he left before graduating to join the United States Army. Cayne is a member of Kappa Beta Phi.
His first job was as a traveling salesman; he then sold scrap iron and municipal bonds. In 1969 he was playing bridge full-time in New York City when Alan C. Greenberg, then a relative novice at the bridge table, hired him as a at Bear Stearns. Cayne became president in 1985, CEO in 1993, and Chairman of the Board (while continuing as CEO) in 2001. He was replaced as CEO only in 2008 and he was with the company until its demise.
In 2005, Forbes magazine ranked him 384th among the 400 richest Americans, with an estimated net worth of $900 million. By 2008 Cayne had lost nearly 95% of his fortune as a result of the collapse of Bear Stearns.
Cayne has been the subject of various press reports since the Bear collapse, including the fact that he sold his stake in the company for $61 million after its crash. On March 14, 2008, Charlie Gasparino of CNBC reported that the value of Cayne's holdings in Bear Stearns had declined from $997 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 per 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 of the company. It is estimated that the value of Cayne's holdings had dropped to less than $15 million as a result, effectively removing him from the list of the wealthiest individuals in the country. 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. This stake was sold prior to the vote on the renewed bid by JP Morgan for Bear Stearns.
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