Bear Stearns
Research a failure that occurred at a large organization such as Tyco, Chrysler/Daimler-Benz, Daewoo, WorldCom, or Enron. In an APA formatted paper that is no longer than 1,050 words, describe how specific organizational behavior theories could have predicted or can explain the failure of the company. Compare and contrast the contributions of leadership, management, and organizational structures to the organizational failure
In 2008 James Cayne, CEO of Bear Stearns, the 85 year old investment firm, stepped
James Cayne, the embattled chief executive of Bear Stearns, will step down after the deepest losses in the firm's history, according to people who have been briefed on the situation.
Cayne, who will remain chairman, will be succeeded by Alan D. Schwartz, who is now president. An announcement is expected as early as Tuesday.
Cayne, a brash banker who joined Bear in 1969 and worked his way to the top, joins a growing list of Wall Street executives whose reputations have been sullied by the worsening mortgage crisis. Citigroup, Merrill Lynch and UBS have ousted chief executives after multibillion-dollar losses on mortgage investments.
Indeed, Cayne and his firm have been at the epicenter of the mortgage debacle. The collapse of two hedge funds managed by Bear Stearns this summer, which resulted in $1.5 billion in investor losses, started a run of executive firings, investor recriminations and regulatory investigations that shows no sign of abating. U.S. prosecutors are looking into whether a senior executive at Bear withdrew money from one of the troubled funds while telling investors the outlook was favorable, a violation of securities laws.
The firm reported $1.9 billion in subprime-related charges last year and recorded its first quarterly loss ever during the fourth quarter. Its stock has plunged more than 50 percent over the last year, raising questions about its ability to remain independent.
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