Bear Stearns Cos co-President and co-Chief Operating Officer Warren Spector resigned on Sunday, a casualty of the credit risk crisis at the investment bank, Reuters reports.
Bear Stearns said effective immediately, Alan Schwartz was the company’s sole president.
Spector’s departure followed Bear Stearns’ assertion on Friday that it was weathering the worst storm in financial markets in more than 20 years, after a major rating company warned mortgage credit problems could hurt the investment bank’s profits.
Standard & Poor’s said the recent collapse of two Bear Stearns-managed mortgage funds could hurt the company’s performance and reputation for an extended period.
Spector’s departure is a blow to Bear Stearns because he was regarded as a possible successor to Chairman and Chief Executive James Cayne. One analyst said Schwartz is now a strong contender to succeed Cayne.