Former Bear Stearns CEO Alan Schwartz is leaving JPMorgan Chase (JPM) following the $10-per share deal that ended Bear’s 85 years as a stand-alone company. Schwartz joined in 1976, and climbed the corporate ladder, becoming CEO in January of 2008 when the stock was at just over $75 per share.
Now he departs without the usual press release and pat on the back. Instead The Wall Street Journal is reporting (subscription required) his departure based on an internal memo that says that "With most of the work on the merger integration behind us, Alan will be moving on from the firm at the end of August to pursue other interests."
It’s a shame to see Schwartz’s career end like this because he was only CEO for about six months, by which point the disastrous investments the company had made were already done and it was just a matter of whether the market would turn. Schwartz stuck his foot in his mouth with insistences that everything was "fine", but the real blame for this mess should be laid at the door of his predecessor, the bridge-playing, allegedly weed-smoking James Cayne who was forced out because he really did preside over the decisions that led to the company demise. Still, it’s easy to understand why Schwartz is ready to call it a career.
What will Schwartz and Cayne do next? A good chunk of their time will probably be devoted to sorting through the myriad class-action lawsuits filed against the company and its executives.
Zac Bissonnette
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