Friday 24 May 2013

2009 Financial Crisis: Wall St Bankers

Jimmy Cayne, former Bear Sterns boss 

While Bear Sterns was going bust Cayne was playing bridge in Detroit. He's quite an accomplished player and has won several rounds of the North American Bridge Championships. But he was less good at running Bear Sterns, with CNBC naming him one of the "worst CEOs of all time". 

Bear Sterns was sold to JP Morgan for $10 a share, compared with the $133.20 a share it was trading at before the crisis. Cayne, who had a big stake in the company, lost about $1bn. 

Cayne has now disappeared from the corporate public eye, but it is still possible to play him at bridge online.

Saturday 4 May 2013

2009 Financial Crisis: Wall St Bankers

Fred Goodwin, former RBS boss 

Fred "the shred" was stripped of his knighthood last year as public anger over his role in causing the financial crisis reached boiling point. Goodwin, who has been dubbed "the world's worst banker", brought Royal Bank of Scotland to its knees via a series of over-ambitious acquisitions. A string of 20 takeovers transformed RBS into a global leader but Goodwin wasn't satisfied and just before the financial crisis struck he led a $100bn takeover of Dutch bank ABN Amro. 

RBS went on to record the biggest annual loss in UK corporate history and had to be bailed out by the government to the tune of £45.5bn. It is now 82%-owned by the state. 

Goodwin hit the headlines again recently when he was blamed for a crisis at Scotland's biggest architecture firm, RMJM, where he was an adviser. About 80 staff left the firm after a battle over unpaid fees.