Bear Stearns Cos Inc (BSC.N: Quote, Profile, Research) said on Thursday it expects that departing star money manager will take about $8 billion of its asset management division's $44 billion of assets with him. But Jeff Lane, newly appointed president of Bear Stearns Asset Management, in an analyst presentation on Thursday, said the impact on financial performance will be less severe because Bear will have a minority stake in and a revenue-sharing arrangement with O'Shaughnessy's new firm. O'Shaughnessy, who joined Bear Stearns in 2001 and is well respected as a strategist and author of best-selling business manual "What Works on Wall Street," previously disclosed he would leave the firm to open his own investing business, O'Shaughnessy Asset Management. O'Shaughnessy, who will continue to serve as a sub-adviser for several of Bear Stearns Asset Management clients, also is taking some other members of his money-management team along to his new firm. The new firm expects to begin doing business in late 2007, according to the Web site of O'Shaughnessy firm. http://www.reuters.com/article/innovationNews/idUSWEN147820071004 Nice golden handshake...
It isn't a golden handshake ... it is saying that investors, making up about $8 billion of the investments, will follow him to his new firm. They aren't just handing him $8 billion...
Bear sterns is retarded. The real money is with Goldman Sachs. They are the ones in control of the worlds financial system and can make any amount of profit. The owners, money is truly not an issue.
bear stearns, ok, now i said it, but i agree with what dude above said, bsc is a bunch of crap and i hope they go under because they suck my nuttz
Of course it isn´t a golden handshake, but what do you think will be the size of management and incentive fees for "managing" these assets ?