Bear Stearns Cos. named Alan D. Schwartz chief executive to replace James Cayne, who will remain as board chairman.
The New York financial services firm said Cayne served as executive chief since 1993 and chairman since 2001.
Schwartz joined Bear Stearns in 1976, and was named president and co-chief operating officer in June 2001.
Bear Stearns recently posted its first quarterly loss in its 84-year history after it wrote down $1.9 billion of mortgage assets.
The company was recently sued by Barclays PLC after two hedge funds managed by Bear Stearns collapsed in the wake of the housing market meltdown.
Shares in Bear Stearns recently traded after hours at $71.12, up down 5 cents after closing down $5.08, or 6.7%, well below its 52-week high of $172.61.
