Cayne To Step Down As Bear Stearns CEO

Cayne To Step Down As Bear Stearns CEO

James Cayne has resigned as chief executive officer of Bear Stearns, amid widespread concern over his management of the Wall Street firm that has been hammered for large bond market losses and the implosion of two hedge funds tied to the subprime bond market, CNBC has learned.

Cayne, who will be 74, in a few weeks, will turn over the top job to Alan Schwartz, who the firm's former president and head of investment banking. The move will be made official at a board meeting Tuesday afternoon.

Cayne will remain as chairman of the firm, but a Bear Stearns official with knowledge of the matter said Schwartz will be running the day-to-day operations of the firm.

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