Bear CEO Schwartz Crawls Out of His Cave

Alan Schwartz has the unenviable task of cleaning up the mess left by Jimmy Cayne. Perhaps moving faster to sack Cayne and de-leverage their balance sheet only looks reasonable with hindsight, but they must have known by July that we were heading into this spiral.

Schwartz’s comments are not entirely convincing to me, but he does claim that they have an adequate cash cushion to allow them liquidity to conduct the business. Still, capital is precious in this environment, and it likely precludes them buying back stock or even paying their folks excessively.

If you plan on entering the biggest battleground on the Street, you might want to check out Alan’s interview with David Faber.

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