New Bear Stearns CEO: Worst May Be Over
After significant writedowns and a top level shakeup at the company, is there more trouble ahead for Bearn Stearns? The new CEO, Alan Schwartz, doesn't think so ... but he's not giving guarantees.
"Number One, the markets are not very liquid right now. so we still have positions with hedge and there's a lot to do to keep that in balance," Schwartz said in an exclusive interview with CNBC. "So we still have some carry over from last year. The other thing we have ... there's some reputational damage that we have to go out and repair."
Schwartz took the top spot at the bank this week after James "Jimmy" Cayne said Tuesday that he's stepping down.
Cayne was the latest casualty of the ongoing credit crisis on Wall Street. Bear Stearns recently posted its only quarterly loss since being founded in 1923 as the collapse of the subprime mortgage market has forced investment banks to take over $100 billion in investment writedowns.
Reported by David Faber, written by CNBC.com.