Geriatric Bun-Fight - Feud At Top Firm

The International Herald Tribune has a great story about two former Bear Stearns CEOs, 80-year-old Alan 'Ace' Greenberg and 74-year-old Jim Cayne. Although the two executives worked together for over four decades, there's said to currently be little love lost between them.

Greenberg and Cayne are thought to have had an uneasy relationship in recent years, with Greenberg (who only retired as Chairman in 2001) not feeling that he was shown the respect that was his due. He is said to have threatened to leave Bear last year, but was appeased when Cayne, worried about the public relations problems Greenberg's departure would cause at a time the firm was in the spotlight for all the wrong reasons, told his board to do what it would take to keep him.

Ace, who is currently writing his memoirs, apparently so winds up Cayne that the latter cannot stand anyone using his predecessor's nickname in his presence. Anyone would does is said to face a $100 fine. When it was pointed out to Greenberg that Cayne has lost almost $1bn from the recent demise of Bear, the older executive (who sold down much if his own stake in the business over the years), replied coyly: 'Oh really. Goodness. That's a shame'.

Greenberg also told The International Herald Tribune that Cayne 'was not interested in my point of view. He was a one-man show. He didn't listen to anyone. That is when the real break took place'. Greenberg also added: 'I don't understand why he comes in. He is not employed here anymore!'. Cayne does, in fact remain Chairman of Bear's board, but isn't thought to have been offered anything in the new organisation. Greenberg, on the other hand, has agreed to stay on with JPMorgan as a Vice Chairman Emeritus. He is said to have negotiated a deal whereby he will be paid 40% of the trading commissions he generates.

When asked by the newspaper if he still considered Cayne a friend, Greenberg 'holds a long silence before responding: 'Oh, he is a dear friend'.