New York (HedgeCo.Net) – Alan Schwartz, former Bear Stearns CEO, has decided to leave JPMorgan and pursue other ventures. 

“With most of the work on the merger integration behind us, Alan will be moving on from the firm at the end of August to pursue other interests,” said JPMorgan CEO Jamie Dimon in a memo distributed internally.

Schwartz, 58, is expected to finish out the month of August at JPMorgan.  The New York Post reported last month that Schwartz was presented several offers including one from private equity firm Kohlberg Kravis Roberts & Co. and others from hedge funds.

“Despite the extremely difficult circumstances that brought our firms together, Alan has been a terrific and constructive partner through the process,” Dimon added in the memo.

Schwartz took the leading role at Bear Stearns, replacing James Cayne.  He was in office only three months before the shocking Federal Reserve-backed buyout that put 14,000 of his employees out of a job.  Some suspected he was reluctant to align himself with JPMorgan after such a large number of his staff was laid off.  Schwartz defended his company’s implosion, blaming the event on false market rumors of a liquidity crunch.

"I am very proud to have been a part of Bear Stearns,” Schwartz stated in the memo. "It was a special place I know many of us will miss.”

While an insider did confirm Schwartz’s exit plan, there is no word yet on what his severance will entail. 

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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New York (HedgeCo.Net) – Alan Schwartz may be having second thoughts about his new position at JPMorgan Chase, reports the New York Post. According to the paper, the former Bear Stearns CEO is contemplating JPMorgan’s offer for a non-executive vice chairman position.

It is still unclear as to why. Some believe Schwartz feels uneasy about the fact that over half of Bear’s employees are without a job, while some say that JPMorgan may not be aggressive enough in their pursuit, having Jimmy Lee already on the payroll.

According to a filing with the SEC, JPMorgan asserted that Schwartz, along with other fellow senior officials may eventually come on board with them. This included Bear CFO Sam Molinaro and Controller Jeffrey Farber.

Alan Schwartz was CEO of Bear Stearns for only three months before the fire sale to JPMorgan backed by the Federal Reserve. Prior to its demise, Schwartz ensured weary investors that Bear’s “liquidity cushion” could handle the losses that were rocking them.

Schwartz will supposedly reveal his decision once he sees how the bank performs post buyout. The Bear-JPMorgan deal was finalized on Friday.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. For more information, visit www.hedgeconetworks.com

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