James Cayne reportedly stepping down as Bear Stearns CEO

Bridge-playing, allegedly pot smoking Bear Stearns (NYSE: BSC) CEO James Cayne will reportedly step down from the executive role, but will stay with the company as chairman. He will be succeeded by current president Alan D. Schwartz.

While no official announcement has been made yet, the news has been a long time coming. Cayne has drawn sharp criticism for the company's huge subprime write-downs which have battered the stock, and his propensity for golfing through the crisis.

But subprime losses aren't the only thing dogging Bear Stearns. Regulators are taking a hard look at the company, and federal prosecutors are investigating whether a senior executive withdrew money from a Bear hedge fund while telling investors the fund's outlook was bright -- shortly before subprime losses led to its collapse.

The company's tanking share price has reportedly led to acquisition and merger overtures from other firms, and the exit of the patriarch from the operational management of the company could pave the way for a sale.

But Bear Stearns' problems may run pretty deep at this point, and the resignation of the CEO will do little to fix them in the short-term.