If sub-prime had a face at Bear Stearns, it was Warren Spector. And as the Wall Street bank continues to suffer at the hands of the declining sub-prime mortgage market, it has cut ties with the now-former firm co-president, who resigned yesterday.
Spector, who was also seen as a possible successor to CEO James Cayne, oversaw both Bear’s fixed-income business—the firm is the second-largest underwriter of U.S. mortgage-backed securities—and its asset management unit, home to Bear’s two now-bankrupt credit hedge funds. Bear, buffeted by sub-prime woes, has seen its share price drop by a third this year.
Spector’s former co-president, Alan Schwartz, was named sole president, while CFO Samuel Molinaro succeeds him as chief operating officer. Jeffrey Mayer, co-head of fixed-income, takes Spector’s place on the firm’s executive committee.