Filed under: Deals, Bad news, Management, Scandals, Bear Stearns Cos (BSC)
With news that Bear Stearns (NYSE: BSC) CEO James Cayne has sold all of his holdings in the stock for $61 million, I actually feel sorry for him. Usually when a senior member of management sells stock it’s cause for worry, but in this case, what would you’ve done?
According to the AP report: ” Cayne sold 5.66 million shares for exactly $10.84 a share on March 25, according to a filing with the Securities and Exchange Commission. His stake was once valued at about $1 billion when the stock was trading at $171.50 per share.”
With all due respect, the man has invested the last 15 years of his life in the company, and to go from being a billionaire, to someone with tens of millions of dollars overnight is a sad story. Now I know you are all going to comment that he still has $60 million, and it was his fault that the bank came crashing to the ground, but that kind of fall must be hard.
If I was in his position I would have sold everything as well. He needs to protect whatever he has, and if he has the ability to walk away with a small fortune, then all the more power to him.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer’s fund has no position in any stock mentioned, as of 3/28/08
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