What was Jimmy Cayne's Net Worth?
Jimmy Cayne was an influential American businessman with a net worth of $100 million at the time of his death. He is most recognized for his role as the CEO of Bear Stearns during its critical collapse in 2008. Jimmy passed away on December 28, 2021, at the age of 87 following a stroke.
Early Life
James "Jimmy" Cayne was born on February 14, 1934, and raised in Evanston, Illinois. He attended Purdue University but left to join the United States Army. After his military service, Jimmy worked as a traveling salesman, selling photocopiers door-to-door before moving on to sell commodities such as scrap iron and municipal bonds.
Bear Stearns
During his time in New York City, Jimmy became an avid bridge player, frequently playing in clubs. His involvement in bridge led him to meet Alan C. Greenberg, CEO of Bear Stearns, who later offered Jimmy a position as a stockbroker. Jimmy's talent and dedication saw him quickly climb the corporate ladder, being named President of the company in 1985, CEO in 1993, and Chairman of the Board in 2011.
(Photo by Win McNamee/Getty Images)
Financial Rise and Collapse
The dramatic rise of Bear Stearns' stock prices made Jimmy Cayne's personal net worth soar to an estimated $900 million by 2005. At the peak of Bear Stearns' success, his stake exceeded $1 billion, making him the first Wall Street bank chief worth over a billion dollars. True to his beliefs, Jimmy never sold a share and encouraged his employees to do the same.
Unfortunately, the 2007/2008 financial crisis led to Bear Stearns' catastrophic downfall. While attending a bridge convention in 2007, two Bear Stearns hedge funds collapsed. In 2008, during another bridge competition, Bear Stearns teetered on bankruptcy. Within the first few months of 2008, Jimmy's stock value plummeted from $1 billion to $200 million.
Bear Stearns eventually sold itself to JP Morgan for $2 per share in March 2008, valuing the firm at $236 million, a severe drop from its $20 billion market cap in early 2007. This sale is considered a significant event that triggered the 2008 global recession, marking the worst economic downturn since the Great Depression. Jimmy ultimately sold his stake in Bear Stearns for a pre-tax total of $61 million.
In the aftermath, he was named by Time Magazine as one of the "25 People to Blame for the Financial Crisis," and CNBC listed him among the "Worst American CEOs of All Time".
Personal Life
Jimmy was married to Patricia Denner from 1971 until his death in December 2021. Together, they had one daughter and five grandchildren. From a previous marriage, Jimmy had another child and two additional grandchildren.
