Alan David Schwartz (born 1950/1951) is an American businessman and is the executive chairman of Guggenheim Partners, an investment banking firm based in Chicago and New York. He was previously the last president and chief executive officer of Bear Stearns when the Federal Reserve Bank of New York forced its March 2008 acquisition by JPMorgan Chase & Co..
Alan David Schwartz|
1950/1951 (age 67–68)
New York City, U.S.
|Residence||Greenwich, Connecticut, U.S.|
|Alma mater||Duke University|
|Occupation||Executive chairman of Guggenheim Partners|
|Known for||Last CEO of Bear Stearns|
Early life and educationEdit
Born in Bay Ridge, Brooklyn, he is the son of a Jewish traveling salesman and Presbyterian housewife from Kansas. Schwartz is a 1972 graduate of Duke University. There he pitched on the baseball team as a scholarship athlete, making the ACC academic honor roll three times. He was drafted as a pitcher by the Cincinnati Reds but never reported due to an injury.
Schwartz joined Bear Stearns in 1976 first working in Dallas and then in 1979, he was appointed the director of research and investment in New York City. In 1985, he became executive vice president and head of Bear Stearns' Investment Banking Division. He became Co-President and Co-COO on June 25, 2001. Schwartz became sole President and COO in August 2007 after Warren Spector (the original heir-apparent to Chairman and CEO Jimmy Cayne) was forced to resign in the wake of the collapse of two hedge funds, which foreshadowed the upcoming subprime mortgage crisis and financial meltdown. Schwartz became CEO in January 2008 after Cayne was pressured to step down.
When Schwartz became CEO, Bear Stearns stock traded around $75 per share, however the share price continued to drop as the financial crisis worsened over 2007-08. Within a week of its near collapse and merger with JPMorgan Chase on March 16, 2008, the shares were trading at $5.33 per share. After the deal with JPMorgan was announced, the fire sale price of the stock prompted a reportedly angry confrontation between Schwartz and senior trader Alan Mintz in the company gym. Schwartz stayed on with JPMorgan for a short while to manage the transition but declined a permanent senior position with the firm. Schwartz also turned down offers from rival investment banks Goldman Sachs and Morgan Stanley.
In June 2009, Schwartz became executive chairman of Guggenheim Partners, an investment banking firm based in Chicago and New York. According to Schwartz, the new job meant "fate has dealt [him] an opportunity to start from scratch." Schwartz is also the chairman of the Board of Visitors at the Fuqua School of Business at Duke and is a trustee on the Duke University Board of Trustees. In 1994, Schwartz was elected to the Common Cause National Governing Board.
- Cane, Jeffrey (January 9, 2008). "The New Bear Chief". portfolio.com. Retrieved 2012-03-28.
Schwartz, 57, has worked at the firm since 1976. He was chosen to run the investment banking division in 1985 and became president of Bear in 2001.
- Onaran, Yalman (April 2, 2008). "Fed Aided Bear Stearns as Firm Faced Chapter 11, Bernanke Says". Bloomberg. Retrieved 2012-03-28.
- William D. Cohan, House of Cards: How Wall Street's Gamblers Broke Capitalism, Penguin UK, 7 May 2009, 608 pages, p.
- Bloomberg News (January 9, 2008). "Bear Stearns Names Alan Schwartz as New CEO". The New York Sun.
- Aaron Lucchetti and Kate Kelly (June 2, 2009). "Guggenheim Is Next Job for Bear's Final CEO". The Wall Street Journal.
- "Academic Honors" (PDF). Duke University. 2007.
- Duke Magazine: "Board Nominates Alumni Trustees" January 31, 2005
- Grynbaum, Michael M. (September 21, 2007). "Bear Stearns Profit Plunges 61% on Subprime Woes". The New York Times. Retrieved 2008-09-14.
- Touryalai, Halah (2011-01-17). "The Resurrection of Alan Schwartz". Forbes. Retrieved 2014-07-19.
- Kelly, Kate (May 27, 2008). "Lost Opportunities Haunt Final Days of Bear Stearns". Wall Street Journal. Retrieved 2012-03-28.
- Schaefer Munoz, Sara (May 28, 2008). "The Company Gym: Sweating Next to the Boss". The Juggle (blog). Wall Street Journal. Retrieved 2012-03-28.
- "After Bear, Schwartz to Join Guggenheim Partners". The New York Times. June 2, 2009. Retrieved 2009-10-12.
- "Alan D. Schwartz T'72". Duke University. Archived from the original on October 27, 2014. Retrieved September 12, 2014.
- William D. Cohan (April 27, 2009). "Is Bear's Alan Schwartz headed to Goldman Sachs?". Fortune.
- You Can Just Call Alan D. Schwartz ‘Mr. Smooth’ from New York Magazine
- Former Duke pitcher scores CEO job at Bear Stearns from Triangle Business Journal
- Alan David Schwartz in Finra website