James Cayne added insult to injury has he sold his last $61 million in stock. He got slight ly more than $10 a share. When the stock traded above $170 lost year, he was a bit better off. According to MarketWatch, "Cayne and his wife sold two large blocks of more than 5.6 million Bear Stearns shares."

Cayne will take a beating for cashing out while many Bear Stearns (NYSE:BSC) employees lose their jobs in a takeover by JP Morgan (NYSE:JPM). He had been kicked out of the CEO job by his board. While he has much responsibility for the collapse of the firm, he has lost most of his fortune, and is in his seventies.

Cayne took what he could before the deal faces potential reviews by Congress. The transaction could still fall apart and take the stock to zero. Cayne will be long gone then, back to playing bridge, golfing, and allegedly smoking pot.

Dougals A. McIntyre is an editor at 247wallst.com.

Bruce Wasserstein's New York Magazine published a list of Wall Street titans who have seen their personal net worth decline in the last year. One name was conspicuously absent from that list: Bruce Wasserstein, who would rank second on the list of biggest losers if he not decided to exclude himself from his own publication. This type of omission has a proud history, as I have never seen Steve Forbes's name on his magazine's rich list.

Nevertheless, here are the top three biggest losers when Wasserstein's name is added accompanied by the amount they have lost:

• The Bear Stearns Companies (NYSE: BSC) former CEO James Cayne saw his net worth plummet $467 million
• Lazard Ltd.'s (NYSE: LAZ) CEO Bruce Wasserstein's net worth has fallen fallen $260 million. (This is calculated by multiplying Wasserstein's 11,394,504 shares by Lazard's stock tumble -- from its May 2007 high of $56.90 to January 24, 2008's $34.09); and
• The Goldman Sachs Group's (NYSE: GS) CEO Lloyd Blankfein has suffered a $100 million decline.

It's nice to own the means of production over at New York Magazine -- and that ownership clearly influences what it chooses not to publish.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

The New York Times reports that an announcement is imminent that The Bear Stearns Companies (NYSE: BSC) has finally decided to boot its CEO James Cayne. Cayne played bridge while Bear burned -- and allegedly smoked pot -- but since he took over in July 1993, Bear's stock has risen 377% from $16 to $76.25.

Cayne oversaw a raft of problems. There's the billions in write-downs related to subprime, the failed hedge funds, the SEC investigation of how withdrawals from those funds were handled. But Cayne also got cash injections from Joseph Lewis, a Bahamas-based billionaire who now owns just under 10 percent of the firm, and Chinese investment bank Citic Securities, which will have a six percent stake.

Alan Schwartz will take over the CEO role while Cayne will remain Bear's chairman. The Times describes Schwartz as, "A smooth, discreet investment banker who has been with Bear since 1976, Mr. Schwartz, 57, is highly regarded inside the firm and out. While he may not have any direct experience with Bear's giant bond business, his youth and ability to charm top corporate clients provide a stark contrast to Mr. Cayne, who travels infrequently and is not known to spend large amounts of time courting clients."

For investors, it remains to be seen whether Schwartz can get to the bottoms of Bear's woes and revive profit growth. But I am impressed that -- unlike its peers -- Bear was able to replace its CEO with an internal executive who knows the company.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in Bear Stearns securities.

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.

MAJOR PAPERS:

• According to people familiar with the matter, The Bear Stearns Companies Inc (NYSE: BSC) CEO James Cayne is expected to step down, but is expected to remain as chairman, the Wall Street Journal reported.
• Northrop Grumman Corporation (NYSE: NOC), in a bid to diversify as a aerospace and naval contractor, is teaming with Oshkosh Truck Corporation (NYSE: OSK) to bid on a contract to build Humvees for the Army and Marine Corps, reported the Wall Street Journal.

• The New York Times reported that court records have shown that troubled mortgage lender Countrywide Financial Corporation (NYSE: CFC) fabricated documents related to a Pennsylvania homeowner bankruptcy case.
• Alleging that its lending practices discriminated against minorities, leading to foreclosures, the Baltimore City Council is suing Wells Fargo Bank and Company (NYSE: WFC), the New York Times reported.

The CEO of Bear Stearns (NYSE: BSC) was golfing during part of the credit crisis at his firm. Now, he will have a lot less for greens fees. James Cayne and several other big shots at the firm have agreed to skip taking bonuses this year.

According to The Wall Street Journal, "By forgoing their bonus pay, executives at Bear are hoping to increase their ability to compensate key players within the firm." The investment bank is expected to announce a loss for the last quarter.

It is about time that someone took responsibility for investments made in risky mortgage-related securities. Bear Stearns has been hit harder than most. So far this year, shares in the company are off about 42%.They could drop further when the latest earnings are released.

CNBC reports that the Bear Stearns board may be looking for a successor to Cayne. If so, he will go out with class.

Douglas A. McIntyre is an editor at 247wall st.com.

Whether what a CEO does in his spare time is important or not, The Wall Street Journal gives the impression that Bear Stearns (NYSE: BSC) chief James Cayne spent too many hours golfing and play bridge when two of the firms hedge funds were in trouble this summer.

The news about Mr. Cayne spending hours out of the office during the problem period in July is already well-known. But in the lead story at the paper's online edition, reporters for the paper write about Cayne's schedule, his habit of not having his cellphone with him at certain times, and rumors that he smokes marijuana to relax.

The paper also reports that when the hedge fund crisis was at its worst "Mr. Cayne left for Nashville to play in the bridge tournament, accompanied by his wife, Patricia, who is a neuropsychologist and another avid bridge player." He stayed in the city for most of the next ten days.

The WSJ wants to make a virtue out of playing detective, which is fine, but whether it helps shareholders in Bear Stearns is another question.

CEOs of large companies often leave the management of problems in the hands of other senior executives. There is too much activity and too many problems to go around for one person to spend close to full-time on any one. Whether Mr. Cayne did or did not allocate his time correctly during the failure of two of the investment bank's hedge funds will always be a matter of conjecture.

What is certain now is that history will re-write the roles of people like Cayne and Merrill Lynch (NYSE: MER)'s Stan O'Neal. They will be cast as villains. And perhaps they should be. But playing bridge during a crisis is never going to look good.

Douglas A. McIntyre is an editor at 247wallst.com.

Chuck Prince, CEO of Citigroup (NYSE: C), needs a few friends. Not the kind he can go fishing with.

Prince's job may be on the line now that Citi has announced that its Q3 profits will drop 60% from last year. According to MarketWatch, the bank blamed "dislocations in the mortgage-backed-securities and credit markets, and deterioration in the consumer-credit environment."

Prince finds himself in a position not unlike that of James Cayne, the head of Bear Stearns (NYSE: BSC). Both financial institutions now have taken very big hits on their watches. Both can blame subordinates, but that may not cut it with their boards or public shareholders.

What saves them? For starters, UBS (NYSE: UBS). The Swiss bank has just reported similar problems in its fixed income portfolio. If the bad news spreads to Bank of America (NYSE: BAC), Lehman (NYSE: LEH) and other global money center banks and investment firms, Prince may be viewed as a victim of a train wreck that almost none of the large firms could avoid. He will, in essence, look as stupid as all of his peers.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Goldman Sachs (NYSE: GS) volatility Elevated into EPS, Risk Exposure & Outlook. GS is expected to report EPS on 9/20. Wachovia Corp.(NYSE:WB) say's "Lack of mortgage and Chinese exposure distinguish GS." GS September option implied volatility is at 50; October is at 45; above its 26-week average of 35 according to Track Data, suggesting larger risk.

Morgan Stanley (NYSE: MS) MS is expected to report EPS on 9/19. MS September option implied volatility is at 48; October is at 41; above its 26-week average of 33 according to Track Data, suggesting larger risk.

Bear Stearns (NYSE: BSC) is expected to report EPS on 9/20. Aquarian Investments holds a 6.97% stake in BSC for investment purposes. BSC Chairman & CEO James Cayne is 72. BSC Chairman of Executive committee Alan Greenberg is 79. WB say's BSC "shares are currently 1.2x book value compared to its historical average of 1.6x." BSC September option implied volatility is at 71; October is at 63; is above its 26-week average of 43 according to Track Data, suggesting large price movement.

Lehman Brothers (NYSE: LEH) is expected to report 3rd quarter EPS on 9/18. WCHV say's LEH's "Q3 started strong but ended real weak." LEH September option implied volatility is at 76; October is at 62; above its 26-week average of 40 according to Track Data, suggesting larger price risk.

Bear Stearns-(NYSE-BSC) volatility Elevated at 56; above 26-week average of 31. BSC is recently down $5.78 to $115.49. BSC August & September option implied volatility of 56 is above its 26-week average of 31 according to Track Data, suggesting larger price movement.

Lehman Brothers Holdings, Inc. (NYSE: LEH) volatility Elevated at 55, above 26-week average of 30. LEH is recently down $2.47 to $59.56. LEH call option volume of 16,716 contracts compares to put volume of 18,651 contracts. LEH August & September option implied volatility of 55 is above its 26-week average of 30 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options-VIX up 1.34 to 24.86.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.