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'''James E. Cayne''' (born February 14, [[1934]]) is an [[United States|American]] businessman |
'''James E. Cayne''' (born [[February 14]], [[1934]]) is an [[United States|American]] [[Businessperson|businessman]], former [[Chief executive officer|CEO]] of [[Bear Stearns]] (1993–2008), and [[Contract bridge|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 [[United States dollar|US$]].<ref>[http://news.bbc.co.uk/1/hi/business/7317878.stm Bear Stearns chairman sells stake]</ref> |
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==Early life and career== |
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Cayne grew up in [[New York City]]. His father was a patent attorney.<ref>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</ref> Cayne attended but didn't complete his studies at [[Purdue University]].<ref>[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</ref> |
Cayne grew up in [[New York City]]. His father was a [[patent attorney]].<ref>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</ref> Cayne attended but didn't complete his studies at [[Purdue University]].<ref>[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</ref> |
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His first job was as a traveling salesman selling |
His first job was as a [[Peddler|traveling salesman]] selling [[Photocopier|copier]]s in the Midwest.<ref name="NYT-6-29-07">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</ref> He subsequently sold [[scrap]] [[iron]]s and [[municipal bond]]s.<ref>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</ref> 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 [[Stock broker|stockbroker]] at Bear Stearns;<ref name="Forbes-400 in 2005"/> 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. |
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In |
In July 2007, Cayne was absent from New York at a bridge tournament when Bear Stearns' [[hedge fund]]s collapsed. This event was one of the causes of the subsequent global financial credit crisis.<ref>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</ref> In March 2008, as Bear Stearns was on the verge of bankruptcy, Cayne played bridge at a tournament in [[Detroit]].<ref>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</ref> |
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Cayne has been the subject of various press since the Bear collapse,<ref>[http://dealbreaker.com/2008/03/how_to_think_about_how_a_potsm.php |
Cayne has been the subject of various press since the Bear collapse,<ref>[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]</ref> including the fact that he has sold his stake in the company for 61 million dollars after its crash.<ref>[http://news.bbc.co.uk/1/hi/business/7317878.stm Bear Stearns chairman sells stake ]</ref> |
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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#Subprime mortgage hedge fund crisis|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. |
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#Subprime mortgage hedge fund crisis|Bear Stearns liquidity crisis]]. Just days later Bear Stearns came to agreement with competitor [[JPMorgan Chase|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.<ref name="Ellis_2008_03_27">{{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}}</ref> This stake was sold prior to the vote on the renewed bid by JP Morgan for Bear Stearns. |
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== |
==Personal== |
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Cayne is a world-class [[Contract bridge|bridge]] player,<ref name="NYT-6-29-07"/> 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<ref>[http://www.acbl.org/nabc/SanFrancisco2007/results/NABC073.HTM "NABC San Francisco 2007 Results"]</ref>. |
Cayne is a world-class [[Contract bridge|bridge]] player,<ref name="NYT-6-29-07"/> having won more than a dozen [[North American Bridge Championships|North American championships]], most recently the [[Reisinger|Reisinger Board-a-Match Teams]] (one of the major North American bridge championships) in November, 2007.<ref>[http://www.acbl.org/nabc/SanFrancisco2007/results/NABC073.HTM "NABC San Francisco 2007 Results"]</ref> He is [[American Contract Bridge League|ACBL]] Grand Life Master<ref>[http://web2.acbl.org/as400/mpraces/mpAwards/lifetime/grandlms.htm ACBL Grand Life Masters]</ref> and [[World Bridge Federation]] World Master,<ref>[http://www.worldbridge.org/people/person.asp?qryid=13178 World Bridge Federation profile]</ref> 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.<ref>[http://money.cnn.com/galleries/2007/fortune/0712/gallery.101_dumbest.fortune/30.html "101 Dumbest Moments in Business"] from ''[[Fortune (magazine)|Fortune]]''</ref> |
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In March |
In March 2002, ''The New York Daily Sun'', a new daily newspaper, announced that he would be writing a bridge column for the paper.<ref>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</ref> |
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In |
In 2005, [[Forbes]] magazine ranked him as #384 among the [[Forbes 400|400 richest Americans]], with an estimated net worth of $900 million. He is married and has two children.<ref name="Forbes-400 in 2005">[http://www.forbes.com/lists/2005/54/UBGJ.html #384 James Cayne], Forbes Magazine top 400 wealthiest Americans, 2005</ref> 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.<ref>[http://a836-acris.nyc.gov/Scripts/DocSearch.dll/PName ACRIS Main Options]</ref> Mr. Cayne is also a [[veteran]] of the [[United States Army]]. |
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During the collapse of Bear Stearns, Cayne was competing in a bridge tournament in Nashville and was unreachable by email or |
During the collapse of Bear Stearns, Cayne was competing in a bridge tournament in [[Nashville]] and was unreachable by [[E-mail|email]] or [[Mobile phone|cell phone]], a fact for which he received much criticism.<ref>[http://online.wsj.com/public/article_print/SB119387369474078336.html Bear CEO's Handling Of Crisis Raises Issues]</ref> |
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==Tournament record== |
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===Wins=== |
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* [[North American Bridge Championships]] (13) |
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** [[Nail Life Master Open Pairs|Life Master Men's Pairs]] (1) 1969 |
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** [[Chicago Mixed Board-a-Match|Master Mixed Teams]] (1) 1966 |
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** [[Jacoby Open Swiss Teams]] (2) 1996, 2005 |
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** [[Mitchell Board-a-Match Teams|Men's Board-a-Match Teams]] (2) 1969, 1988 |
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** [[Grand National Teams]] (1) 1994 |
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** [[Spingold|Spingold Knockout Teams]] (2) 1989, 1990 |
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** [[Reisinger|Reisinger Board-a-Match Teams]] (4) 1977, 1988, 1992, 2007 |
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* United States Bridge Championships (1) |
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** Open Team Trials (1) 1995 |
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* Other notable wins: |
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** Goldman Pairs (1) 1968 |
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** Cavendish Invitational Pairs (1) 1982 |
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** Cavendish Invitational Teams (1) 1986 |
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===Runner-ups=== |
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* [[World Mixed Pairs Championship|Olympiad Mixed Pairs]] (1) 1974 |
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* [[World Mixed Teams Championship|Olympiad Mixed Teams]] (1) 1974 |
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* [[North American Bridge Championships]] (15) |
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** [[Von Zedtwitz Life Master Pairs|Life Master Pairs]] (2) 1969, 1973 |
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** [[Chicago Mixed Board-a-Match|Mixed Board-a-Match Teams]] (1) 1996 |
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** [[Mitchell Board-a-Match Teams|Men's Board-a-Match Teams]] (1) 1989 |
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** [[Mitchell Board-a-Match Teams|Open Board-a-Match Teams]] (1) 1995 |
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** [[Vanderbilt Trophy|Vanderbilt Knockout Teams]] (3) 1983, 1997, 1998 |
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** [[Spingold|Spingold Knockout Teams]] (3) 1994, 1997, 2006 |
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** [[Reisinger|Reisinger Board-a-Match Teams]] (4) 1981, 1993, 1994, 1996 |
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<references/> |
<references/> |
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{{DEFAULTSORT:Cayne, James}} |
{{DEFAULTSORT:Cayne, James}} |
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[[Category:1934 births]] |
[[Category:1934 births]] |
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[[Category:American businesspeople]] |
[[Category:American businesspeople]] |
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[[Category:American chief executives]] |
[[Category:American chief executives]] |
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[[Category:American bridge players]] |
[[Category:American bridge players]] |
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{{US-business-bio-1930s-stub}} |
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{{bridge-game-stub}} |
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Revision as of 19:19, 11 June 2008
James E. Cayne (born February 14, 1934) is an American businessman, 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$.[1]
Early life and career
Cayne grew up in New York City. His father was a patent attorney.[2] Cayne attended but didn't complete his studies at Purdue University.[3]
His first job was as a traveling salesman selling copiers in the Midwest.[4] He subsequently sold scrap irons and municipal bonds.[5] 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;[6] 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.[7] In March 2008, as Bear Stearns was on the verge of bankruptcy, Cayne played bridge at a tournament in Detroit.[8]
Cayne has been the subject of various press since the Bear collapse,[9] including the fact that he has sold his stake in the company for 61 million dollars after its crash.[10]
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.[11] 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,[4] 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.[12] He is ACBL Grand Life Master[13] and World Bridge Federation World Master,[14] 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.[15]
In March 2002, The New York Daily Sun, a new daily newspaper, announced that he would be writing a bridge column for the paper.[16]
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.[6] 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.[17] 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.[18]
Tournament record
Wins
- North American Bridge Championships (13)
- Life Master Men's Pairs (1) 1969
- Master Mixed Teams (1) 1966
- Jacoby Open Swiss Teams (2) 1996, 2005
- Men's Board-a-Match Teams (2) 1969, 1988
- Grand National Teams (1) 1994
- Spingold Knockout Teams (2) 1989, 1990
- Reisinger Board-a-Match Teams (4) 1977, 1988, 1992, 2007
- United States Bridge Championships (1)
- Open Team Trials (1) 1995
- Other notable wins:
- Goldman Pairs (1) 1968
- Cavendish Invitational Pairs (1) 1982
- Cavendish Invitational Teams (1) 1986
Runner-ups
- Olympiad Mixed Pairs (1) 1974
- Olympiad Mixed Teams (1) 1974
- North American Bridge Championships (15)
- Life Master Pairs (2) 1969, 1973
- Mixed Board-a-Match Teams (1) 1996
- Men's Board-a-Match Teams (1) 1989
- Open Board-a-Match Teams (1) 1995
- Vanderbilt Knockout Teams (3) 1983, 1997, 1998
- Spingold Knockout Teams (3) 1994, 1997, 2006
- Reisinger Board-a-Match Teams (4) 1981, 1993, 1994, 1996
References
- ^ Bear Stearns chairman sells stake
- ^ Landon Thomas, Jr., "Distinct Culture at Bear Stearns Helps It Surmount a Grim Market", New York Times, March 28, 2003
- ^ "Harvard and Wisconsin Tie in Turning Out the Most CEOs in U.S.", Bloomberg News, July 30, 2006
- ^ a b Landon Thomas, Jr., "Salvaging a Prudent Name", New York Times, June 29, 2007
- ^ Allen R. Myerson, Careful Player Moves Closer To the Top at Bear Stearns", New York Times, July 14, 1993
- ^ a b #384 James Cayne, Forbes Magazine top 400 wealthiest Americans, 2005
- ^ Kate Kelly, "Bear CEO's Handling Of Crisis Raises Issues", Wall Street Journal, November 1, 2007
- ^ Kate Kelly, "Where in the World is Bear’s Jimmy Cayne? Playing Bridge.", Wall Street Journal, March 14, 2008
- ^ How to Think About How a Pot-Smoking, Card-Shark College Dropout Brought Down an 85-Year-Old Firm
- ^ Bear Stearns chairman sells stake
- ^ David Ellis (2008-03-27). ""Bear Stearns' Cayne sells over $60M in stock"". CNNMoney.com. Archived from the original on 2008-03-27.
- ^ "NABC San Francisco 2007 Results"
- ^ ACBL Grand Life Masters
- ^ World Bridge Federation profile
- ^ "101 Dumbest Moments in Business" from Fortune
- ^ Patrick McGeehan, "Private Sector; Call Him a Specialist In Bridge Financing", New York Times, March 24, 2002
- ^ ACRIS Main Options
- ^ Bear CEO's Handling Of Crisis Raises Issues