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Published on March 20, 2008

According to Bloomberg, after a spat over politics in 2004, Cayne, then Bear Stearns' chief executive officer, changed the company's deferred compensation plan, prompting Spector to sell US$382 million (Bt11.89 billion) of stock. As of last March, his stake in the New York-based firm had dwindled to 0.06 per cent, worth about $8 million when he left.

Spector, 50, faced Cayne again in a bridge tournament  last weekend in Detroit, Michigan. As the competition was coming to a close, Bear Stearns was being sold to JPMorgan Chase for $291 million, less than the value of its Manhattan headquarters building. Cayne's 5-per-cent stake in the firm has plummeted in value from almost $1 billion last year, when the shares reached their peak of $170, to about $12 million based on the sale price.

Cayne, who remains non-executive chairman after stepping down as CEO following an $854-million fourth-quarter loss, bested Spector in Detroit, ranking 65th out of 3,555 players in the 11-day tournament. Spector came in 146th. The men participated in two legs of the tournament together, though they never played against each other, according to American Contract Bridge League statistics. Cayne, 74, outperformed his former colleague in both series of games.

Cayne blamed Spector for the collapse of two Bear Stearns hedge funds that had invested in mortgage-backed assets and lost $1.6 billion of investor capital last July. The funds' meltdown tarnished the firm's risk-averse reputation and triggered a repricing of mortgage-related securities that has produced more than $195 billion of losses at banks and brokers worldwide.

Before being ousted, Spector was viewed by analysts and shareholders as Cayne's heir apparent. Instead, Cayne wound up turning to Alan Schwartz, an investment banker and 32-year veteran of the firm.

Schwartz continued to negotiate deals after becoming CEO, as recently as two weeks ago being hired by Microsoft to advise on its attempt to buy Yahoo.

Schwartz, 57, was forced to accept JPMorgan's $2-a-share offer over the weekend after a run on the securities firm threatened it with bankruptcy. Bear Stearns rose to $5.91 in New York trading yesterday as traders bet shareholders would hold out for a higher offer. A few dollars more a share would not help Cayne recoup his loss on the stake.

The Nation