Cayne unloads entire stake in troubled Bear Stearns Chairman sells more than $61 million in stock

Market Watch ^ | 3-27-08 | John Letzing

[RKBA Democrat]

Bear Stearns Cos. Chairman James Cayne sold $61.3 million in insider stock this week, his entire remaining stake, amid a controversial acquisition of the struggling investment firm by J.P. Morgan Chase & Co., according to a regulatory filing. Cayne and his wife sold two large blocks of more than 5.6 million Bear Stearns shares on Tuesday at $10.84, leaving them with no remaining shares, according to the filing.

In a stunning deal authorized by the U.S. government earlier this month, J.P. Morgan agreed to pay a mere $2 a share to acquire Bear Stearns, after Bear suffered from a collapse wrought by the ongoing credit crunch and its highly leveraged bets in the subprime mortgage business.

J.P. Morgan has since then raised its bid to $10 a share, and Bear Stearns shares regained some ground, closing Thursday at $11.23. But the proposed deal still faces questions about the burden it places on taxpayers, and the precedent it may set for the government's role in future financial disasters in the private sector.

[RKBA Democrat]

An example of corporate socialism at it's best. And guess who's going to get stuck with the bill to guarantee the assets being purchased by J.P. Morgan? If you guessed the taxpayer, you guessed right.

[kjam22]

Yet Hillary is talking about a credit crisis because now people without money can’t borrow enough to buy a first time owner, $500,000 home on a interest only teaser loan that re-sets in 3 years. Go figure.

[fignewton]

Ouch! About 8 months ago his shares were worth $890 million ($159 a share).

[bjs1779]

"Bear Stearns Cos. Chairman James Cayne sold $61.3 million, in insider stock this week, his entire remaining stake, amid a controversial acquisition of the struggling investment firm by J.P. Morgan Chase & Co., according to a regulatory filing. Cayne and his wife sold two large blocks of more than 5.6 million Bear Stearns shares on Tuesday at $10.84, leaving them with no remaining shares, according to the filing."

I feel so sorry for them. How will they survive?

[B.O. Plenty]

Yeah, shiite....i'd as soon flush it down the toilet as to take that little for the stock....how is Mr Cayne going to survive?....

Seriously....Cayne may have to sell his G5 and scale back to an old Citation....oh the shame of it all......./s

[newbie 10-21-00]

The fact that this fool lost $800m in 8 or 14 months means he was not only too stupid to run Bear Stearn, but too stupid to live.

[teeman8r]

easy on the old boy... his home has 4 kitchens with complete staffs... he never knows where his next meal is coming from ...

t

[Republic of Texas]

Stupid enough to be a multi-millionaire, but too stupid to be a billionaire.

"Missed it, by THAT much!"

[Freedom_Is_Not_Free]

The Chairman bails out. So tell me again, why have other people been buying in? I’m betting the Chairman knows the real shape of this turd a lot better than those buying it up last week.