Heaven knows we at Here Is The City love to have a pop at a rich banker who has screwed up - especially if he's the CEO of a top firm. So, we've not been slow in criticizing Bear Stearns CEO Jim Cayne for his firm's hedge fund problems, third-quarter trading performance and the fact that employees are paying the price for his cock-ups by getting the axe. Hell, we've even taken the piss out of Jim's golfing exploits. But even we think that an article in Thursday's Wall Street Journal (WSJ) crosses the line.

The article goes through a litany of Bear's / Cayne's recent woes, namely :

The risk management issues that were the root of the firm's summer hedge fund problems (really very old news).

The fact that Bear had a bad third-quarter (very old news).

The allegations that Cayne himself was out on the golf course (playing badly), while the crisis was brewing in the summer months (more old news).

The departure of Bear co-President Warren Spector, who many saw as the 'fall-guy' for the firm's difficulties (more old news).

But also, in a story more worthy of the the UK's 'Sun' newspaper and 'The New York Post' (both owned by new WSJ owner News Corporation), The Journal reports allegations that attendees of a bridge club Cayne occasionally goes to have suggested that he 'sometimes smoked marijuana at the end of the day during bridge tournaments'.

Cayne has emphatically denied that any marijuana use took place, saying 'there is no chance that it happened. Zero chance'. In a memo to all Bear staff sent out Thursday, Cayne said that:

'The Wall Street Journal today published an article criticising my leadership of Bear Stearns. I stand by the record of success the firm has had over the 14 years that I have had the privilege of leading this great organisation. I remain, as I have been for many years, intensely focused on our business.......Thank you for your continued dedication to Bear Stearns, and don't be distracted by the noise. I am certainly not'. At least Cayne hasn't totally lost his sense of humour, though. He is said to have told CNBC that, since this story broke, 'it's unbelievable. The phones are ringing off the hook, and everyone wants to play golf with me now!'. Cayne's street cred, whatever the truth in the story, is on the rise.

Although Marijuana (derived from the cannabis plant) is a Schedule I substance under the US Controlled Substances Act, it is regarded by many as a recreational drug. The list of at least one-time marijuana users allegedly include George W. Bush and Bill Clinton (although he, of course, famously didn't inhale). Other US Presidents who allegedly smoked hemp (the tough coarse fiber of the cannabis plant, which is used mainly to make cordage) include Thomas Jefferson and George Washington. So, even if Cayne did partake (which he denies anyway), he would be in very good company.

Anyway, we at Here Is The City are all for CEOs being made accountable for what happens at their firms during their tenure. We do not, however, favour witch hunts. The Wall Street Journal article was unnecessary - it was full of old news and complete with a silly rumour most couldn't care less about. (If Cayne was seen by staff smoking pot in the office, then that might have been a real story).

Cayne's future is in the hands of those who are paid to supervise his activities - his board. If the board consider that he is the man to continue to lead the firm through this period of turmoil, then fine. (If they are wrong, they will no doubt later face shareholder lawsuits). But we shouldn't forget that, during the 14 years that Cayne has been CEO, Bear's stock has risen almost 600%. So he can't be all bad.

We'll continue to question whether any CEO who has failed his stakeholders should stay on to run his firm, but we don't give a fig if Jim Cayne (or anyone else) does smoke the occasional joint in his own time, (and we also won't keep regurgitating old news stories). Neither should anyone else - particularly a newspaper that should know better.

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