Alan Schwartz, the new chief executive of Bear Stearns, is a well-regarded, smooth dealmaker—which stands in sharp contrast to the deteriorating reputation of his predecessor, James Cayne, whose aloof management style and extracurricular activities made him the butt of jokes on Wall Street late last year.

Respect is important, but the question is whether it will be enough to turn around Bear. There is still skepticism about the company's strategy of being focused almost entirely on its bond trading. The Financial Times' Lex column says, "Since [Cayne] is staying on as chairman and will be replaced by his longtime lieutenant, the move looks largely symbolic."

Indeed, in a statement, Bear emphasized continuity in the executive transition. "Jimmy Cayne is a Wall Street legend," Schwartz said. "I've learned a lot from him in the 30 years we have been friends and partners here at Bear Stearns, and I am pleased we will be able to continue working together."

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.

In an interview with Kate Kelly and Dana Cimilluca of the Wall Street Journal, Schwartz says his plan is to get out of unwanted positions in leveraged loans and mortgages, seek new ways to profit in fixed income, and expand overseas.

Landon Thomas Jr., in the New York Times, notes that under Cayne, Bear passed up opportunities to acquire Neuberger Berman, the money manager, and Pershing, the back-office unit of Credit Suisse First Boston.

"Under Mr. Schwartz, who owns less than 1 percent of the firm, Bear is expected to adopt a cooler, more objective, and ultimately more realistic approach to deals," Thomas says.

Schwartz has served as an adviser in a number of high-profile corporate battles. He counseled Viacom in its 1993 bidding war with QVC Network for Paramount Communications and, more recently, advised Richard Parsons of Time Warner when activist investor Carl Icahn pushed to split the company.

As a result, Schwartz has earned a reputation as a calm and trusted consigliere. "Even when Alan was annoyed, he was polite about it," Michael Ehrlich, who ran Bear's emerging-markets fixed income business for a period in the 1990s, told Reuters.

Major strategic changes are not expected under Schwartz, at least not for a while. He sought to quash one persistent area of speculation in his interview with Reuters.

"Being acquired is not a strategy," he said.

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