Bear Stearns has been rocked by the collapse of several of its hedge funds and management turmoil, but new CEO Alan Schwartz insists that the firm is on the rebound. “I think people realized that we have righted the ship, and our businesses are off to a strong year,” says Schwartz, the 57-year-old longtime banking chief who succeeded Jimmy Cayne last month following the firm’s announcement of an $854 million net loss for the fourth quarter of 2007 — its first-ever quarterly loss. Bear Stearns wrote down $1.9 billion in mortgage inventory in the quarter and closed a third hedge fund last month. But Schwartz says the mood inside the firm remains “very strong,” and the onetime pitcher for the Duke University baseball team sees Bear Stearns “going back to playing offense” to generate business.
