PEOPLE - Steady Hand

The job of overhauling $60 billion Bear Stearns Asset Management after devastating losses in two internal hedge funds now falls to Jeffrey Lane, 65, former head of Neuberger Berman and vice chairman at Lehman Brothers. Lane, who ran Lehman’s wealth and asset management division after Lehman purchased Neuberger in 2003, has his work cut out for him. Two hedge funds, the High-Grade Structured Credit Strategies Fund and the High-Grade Structured Credit Strategies Enhanced Leverage Fund, suffered huge losses from bad bets in the subprime mortgage market. Lane, who wasn’t available to comment, succeeds Richard Marin, who resigned last month and had been overseeing an expansion of the money management business. One Wall Street observer described the decision to go with Lane as “infusing the division with a proven leader,” until the firm can gain control of its losses. Lane is a familiar face at Bear. Before Lehman’s purchase of Neuberger, Bear had sought out the Chicago-based firm as a possible acquisition target.