James Cayne
Encyclopedia
James E. "Jimmy" Cayne is an American
businessman
, a former CEO
of Bear Stearns
, founder of TalkGeek.org and world-class 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. CNBC
named Cayne as one of the "Worst American CEOs of All Time".
. His father was a patent attorney
. Cayne attended Purdue University
, but he left before graduating to join the United States Army
.
His first job was as a traveling salesman
selling photocopier
s in the Midwest. He subsequently sold scrap iron
and municipal bond
s. 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; 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 fund
s collapsed. This event was one of the early signals of the subsequent global financial credit crisis. In March 2008, as Bear Stearns was on the verge of bankruptcy, Cayne played bridge at a tournament in Detroit.
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 $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 $10 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.
player, 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. He is ACBL
Grand Life Master and World Bridge Federation
World Master, and has represented the United States in the Bermuda Bowl
world championship in 1995.
In March 2002, The New York Daily Sun, a new daily newspaper, announced that he would be writing a bridge column for the paper.
In 2005, Forbes
magazine ranked him as the 384th among the 400 richest Americans
, with an estimated net worth of $900 million. He is married and has two children. On February 15, 2008, the Caynes purchased two fourteenth-floor condominium units in Plaza Hotel overlooking Central Park in New York for $27.4 million.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman
Businessperson
A businessperson is someone involved in a particular undertaking of activities for the purpose of generating revenue from a combination of human, financial, or physical capital. An entrepreneur is an example of a business person...
, a former CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of Bear Stearns
Bear Stearns
The Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...
, founder of TalkGeek.org and world-class bridge
Contract bridge
Contract bridge, usually known simply as bridge, is a trick-taking card game using a standard deck of 52 playing cards played by four players in two competing partnerships with partners sitting opposite each other around a small table...
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. CNBC
CNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
named Cayne as one of the "Worst American CEOs of All Time".
Early life and career
Cayne grew up in Evanston, IllinoisEvanston, Illinois
Evanston is a suburban municipality in Cook County, Illinois 12 miles north of downtown Chicago, bordering Chicago to the south, Skokie to the west, and Wilmette to the north, with an estimated population of 74,360 as of 2003. It is one of the North Shore communities that adjoin Lake Michigan...
. His father was a patent attorney
Patent attorney
A patent attorney is an attorney who has the specialized qualifications necessary for representing clients in obtaining patents and acting in all matters and procedures relating to patent law and practice, such as filing an opposition...
. Cayne attended Purdue University
Purdue University
Purdue University, located in West Lafayette, Indiana, U.S., is the flagship university of the six-campus Purdue University system. Purdue was founded on May 6, 1869, as a land-grant university when the Indiana General Assembly, taking advantage of the Morrill Act, accepted a donation of land and...
, but he left before graduating to join the United States Army
United States Army
The United States Army is the main branch of the United States Armed Forces responsible for land-based military operations. It is the largest and oldest established branch of the U.S. military, and is one of seven U.S. uniformed services...
.
His first job was as a traveling salesman
Peddler
A peddler, in British English pedlar, also known as a canvasser, cheapjack, monger, or solicitor , is a travelling vendor of goods. In England, the term was mostly used for travellers hawking goods in the countryside to small towns and villages; they might also be called tinkers or gypsies...
selling photocopier
Photocopier
A photocopier is a machine that makes paper copies of documents and other visual images quickly and cheaply. Most current photocopiers use a technology called xerography, a dry process using heat...
s in the Midwest. He subsequently sold scrap iron
Iron
Iron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
and municipal bond
Municipal bond
A municipal bond is a bond issued by a city or other local government, or their agencies. Potential issuers of municipal bonds includes cities, counties, redevelopment agencies, special-purpose districts, school districts, public utility districts, publicly owned airports and seaports, and any...
s. In 1969, in New York City, he was playing bridge full time when fellow bridge-player Alan Greenberg
Alan Greenberg
Alan C. "Ace" Greenberg is a former Chairman of the Executive Committee of The Bear Stearns Companies, Inc.He began work at Bear Stearns in 1949 as a clerk. He served as Chairman of the Board of Bear Stearns from 1985 to 2001, and as its CEO from 1978 to 1993. Greenberg serves also as a...
, then a relative novice, hired him as a stockbroker
Stock broker
A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors...
at Bear Stearns; 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 fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
s collapsed. This event was one of the early signals of the subsequent global financial credit crisis. In March 2008, as Bear Stearns was on the verge of bankruptcy, Cayne played bridge at a tournament in Detroit.
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
Charlie Gasparino
Charles Gasparino is a senior correspondent for the Fox Business Network, where he reports on major developments in the world of finance and politics, as well as a blogger, occasional radio host, New York Times bestselling author, and print journalist. He lives and works in New York City...
of CNBC
CNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
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 $10 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.
Personal
Cayne is a world-class bridgeContract bridge
Contract bridge, usually known simply as bridge, is a trick-taking card game using a standard deck of 52 playing cards played by four players in two competing partnerships with partners sitting opposite each other around a small table...
player, having won more than a dozen North American championships
North American Bridge Championships
North American Bridge Championships are three annual bridge conventions sponsored by the American Contract Bridge League . The "Spring", "Summer", and "Fall" NABCs are usually scheduled in March, July, and November for about eleven days. They comprise both championship and side contests of...
, most recently the Reisinger Board-a-Match Teams
Reisinger
The Reisinger national bridge championship is held at the fall American Contract Bridge League North American Bridge Championship .The Reisinger is a board-a-match event.-History:...
(one of the major North American bridge championships) in November, 2007. He is ACBL
American Contract Bridge League
The American Contract Bridge League is the largest contract bridge organization in North America. It promotes the game of bridge in the United States, Mexico, Bermuda, and Canada, and is a member of the World Bridge Federation...
Grand Life Master and World Bridge Federation
World Bridge Federation
The World Bridge Federation is the world governing body of contract bridge. The WBF is responsible for world championship competition, most of which is conducted at a few multi-event meets on a four-year cycle...
World Master, and has represented the United States in the Bermuda Bowl
Bermuda Bowl
The Bermuda Bowl is a trophy awarded to the winners of the Open series in the World Team Championship in contract bridge and is named for the site of the inaugural tournament held in 1950...
world championship in 1995.
In March 2002, The New York Daily Sun, a new daily newspaper, announced that he would be writing a bridge column for the paper.
In 2005, Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
magazine ranked him as the 384th among the 400 richest Americans
Forbes 400
The Forbes 400 or 400 Richest Americans is a list published by Forbes Magazine magazine of the wealthiest 400 Americans, ranked by net worth. The list is published annually in September, and 2010 marks the 29th issue. The 400 was started by Malcom Forbes in 1982 and treats those in the list like...
, with an estimated net worth of $900 million. He is married and has two children. On February 15, 2008, the Caynes purchased two fourteenth-floor condominium units in Plaza Hotel overlooking Central Park in New York for $27.4 million.
Wins
- North American Bridge ChampionshipsNorth American Bridge ChampionshipsNorth American Bridge Championships are three annual bridge conventions sponsored by the American Contract Bridge League . The "Spring", "Summer", and "Fall" NABCs are usually scheduled in March, July, and November for about eleven days. They comprise both championship and side contests of...
(13)- SpingoldSpingoldThe Spingold national bridge championship is held at the summer American Contract Bridge League North American Bridge Championship ....
(2) 1989, 1990 - ReisingerReisingerThe Reisinger national bridge championship is held at the fall American Contract Bridge League North American Bridge Championship .The Reisinger is a board-a-match event.-History:...
(5) 1977, 1988, 1992, 2007, 2011 - Grand National TeamsGrand National TeamsThe Grand National Teams national bridge championship is held at the summer American Contract Bridge League North American Bridge Championship ....
(1) 1994 - Men's Board-a-Match TeamsMitchell Board-a-Match TeamsThe Mitchell Board-a-Match Teams national bridge championship is held at the fall American Contract Bridge League North American Bridge Championship ....
(2) 1969, 1988 - Jacoby Open Swiss TeamsJacoby Open Swiss TeamsThe Jacoby Open Swiss Teams national bridge championship is held at the spring American Contract Bridge League North American Bridge Championship ....
(2) 1996, 2005 - Master Mixed TeamsChicago Mixed Board-a-MatchThe Chicago Mixed Board-a-Match teams national bridge championship is held at the summer American Contract Bridge League North American Bridge Championship .The event is a board-a-match team event....
(1) 1966 - Life Master Men's PairsNail Life Master Open PairsThe Nail Life Master Open Pairs national bridge championship is held at the fall American Contract Bridge League North American Bridge Championship ....
(1) 1969
- Spingold
- United States Bridge Championships (1)
- Open Team Trials (1) 1995
- Other notable wins:
- Maccabiah Games (1) 1981
- Cavendish Invitational Teams (1) 1986
- Cavendish Invitational Pairs (1) 1982
- Goldman Pairs (1) 1968
Runner-ups
- Olympiad Mixed TeamsWorld Mixed Teams ChampionshipThe World Mixed Teams Championship is a bridge competition for teams of mixed pairs. At every table, two teams are always represented by a mixed pair, one man and one woman....
(1) 1974 - World Mixed PairsWorld Mixed Pairs ChampionshipThe World Mixed Pairs Championship is a bridge championship for mixed-gender pairs held every four years as part of the World Bridge Championships.-Results:World meets commonly run for 15 days on a schedule whose details vary....
(1) 1974 - North American Bridge ChampionshipsNorth American Bridge ChampionshipsNorth American Bridge Championships are three annual bridge conventions sponsored by the American Contract Bridge League . The "Spring", "Summer", and "Fall" NABCs are usually scheduled in March, July, and November for about eleven days. They comprise both championship and side contests of...
(15)- VanderbiltVanderbilt TrophyThe trophy is awarded for the Vanderbilt Knockout Teams national bridge championship held at the spring American Contract Bridge League North American Bridge Championship ....
(3) 1983, 1997, 1998 - SpingoldSpingoldThe Spingold national bridge championship is held at the summer American Contract Bridge League North American Bridge Championship ....
(3) 1994, 1997, 2006 - ReisingerReisingerThe Reisinger national bridge championship is held at the fall American Contract Bridge League North American Bridge Championship .The Reisinger is a board-a-match event.-History:...
(4) 1981, 1993, 1994, 1996 - Open Board-a-Match TeamsMitchell Board-a-Match TeamsThe Mitchell Board-a-Match Teams national bridge championship is held at the fall American Contract Bridge League North American Bridge Championship ....
(1) 1995 - Men's Board-a-Match TeamsMitchell Board-a-Match TeamsThe Mitchell Board-a-Match Teams national bridge championship is held at the fall American Contract Bridge League North American Bridge Championship ....
(1) 1989 - Mixed Board-a-Match TeamsChicago Mixed Board-a-MatchThe Chicago Mixed Board-a-Match teams national bridge championship is held at the summer American Contract Bridge League North American Bridge Championship .The event is a board-a-match team event....
(1) 1996 - Life Master PairsVon Zedtwitz Life Master PairsThe Von Zedtwitz Life Master Pairs national bridge championship is held at the summer American Contract Bridge League North American Bridge Championship ....
(2) 1969, 1973
- Vanderbilt
- United States Bridge Championships (1)
- Open Team Trials (1) 1998
- Other notable 2nd places:
- Now! Invitational Pairs (1) 1981
- Cavendish Invitational Pairs (1) 1976