Bear Stearns Turns to Insider Schwartz for New Course

(Bloomberg) -- In naming insider Alan Schwartz as its new chief executive officer, Bear Stearns Cos. is pursuing a different course than other firms that replaced their leaders after suffering subprime mortgage losses.

Schwartz, an executive with more than 30 years of experience at Bear Stearns, was the hand-picked choice of his predecessor, James ``Jimmy'' Cayne, 73, who remains as non-executive chairman. Other firms such as Merrill Lynch & Co. and Citigroup Inc. sent their CEOs packing and named replacements with extensive experience elsewhere.

The 57-year-old Schwartz is known for his collegial style, which he will need as Bear Stearns seeks to rebuild confidence in the firm, battered by subprime losses and a languishing stock price. Cayne, who stepped down yesterday, wasn't known for his personal skills.

 

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