Former Bear Stearns Chairman & CEO James Cayne, who left that post in January 2008, told the Financial Crisis Inquiry Commission [FCIC] that the investment bank was brought down by “overwhelming” market forces, not risky bets in the subprime mortgage market.
Reuters: “Subsequent events show that Bear Stearns’ collapse was not the result of any actions or decisions unique to Bear Stearns. Instead, it was due to overwhelming market forces that Bear Stearns, as the smallest of the independent investment banks, could not resist,” Cayne said.
According to Cayne, the market’s lack of confidence in the firm was “unjustified and irrational”.
Cayne’s Opening Statement to FCIC:
