Tuesday, May 27, 2008
Over two months later, what do we know about the collapse of Bear Stearns? Bear's CEO Alan Schwartz blames an unforeseen "market tsunami." The Wall St. Journal, in the first of a three-part series, looks at the role internal dissension played in bringing about its downfall. It reports that at early as August 2007 individuals within and outside the firm were calling for it to raise additional capital and reduce its inventory of mortgage-related securities, but to no avail, in large part, according to the WSJ, to the firm's reluctance to replace CEO James Cayne, much blamed by the newspaper in an earlier article for his disengaged attitude toward the firm's troubles. WSJ, Lost Opportunities Haunt Final Days of Bear Stearns.