Former CEO of Bear Stearns, who was blamed for the 2008 economic crisis, sues his Park Avenue cooperative who accuses them of causing & # 39; serious financial difficulties & # 39;
- James Cayne filed the lawsuit against the cooperative administration in 510 Park Avenue
- He has been trying to sell his 5000 square foot unit there since 2013
- But claims that the co-op board has blocked sales and scrapped potential deals
- Cayne stepped down as CEO of Bear Stearns in 2008 after criticism
The former CEO of Bear Stearns, whose management failure was involved in the 2008 financial crisis, has sued his cooperative board for & # 39; serious financial setbacks & # 39 ;.
James Cayne, 85, accused the cooperative at 510 Park Avenue of repeatedly blocking the sale of his sixth-floor unit and requested management records in a court that filled in Tuesday in Manhattan.
Apartment cooperatives are a form of home ownership where residents are shareholders in a company that owns and maintains a building – and cooperative boards often exercise far-reaching control over who can move in.
Cayne and his wife first bought the 5,000-square-foot, 5.5-bedroom unit for $ 1.1 million in 1981 as he rose through the ranks at Bear Stearns.
Former Bear Stearns CEO, James Cayne, 85, (seen in 2010) repeatedly accused the 510 Park Avenue cooperative of repeatedly blocking the sale of his sixth floor unit
Cayne has been trying to sell its unit since 2013 on 510 Park Avenue (above)
According to the submission that Cayne & # 39; s resentment with the board dates from 1999, when he forced the board to sell two & # 39; girls' rooms & # 39; to be performed by public auction instead of sealed bid, according to The real thing.
Cayne started a bidding war with neighbor Lawerence Friedland, which pushed up the price of the room that Friedland eventually bought.
Friedland is now the head of the cooperative and Cayne claims that he has used his power to retaliate by forbidding Cayne to sell.
Cayne and his wife left in 2013 and recorded the unit for $ 14.95 million, which subsequently lowered the asking price to $ 10 million.
In March 2016, the board rejected a bid of $ 9 million, and another bid for $ 8.7 million was rejected in May, according to the submission.
The 5000 square foot unit has 5.5 bedrooms, one of which can be seen above
The apartment also features a large fireplace and a 34-meter living room
A private lift is another advantage of the unit, which Cayne bought in 1981 for $ 1.1 million
This year, the board rejected an offer of $ 6 million and continued to reject it when the buyer raised the offer to $ 6.75 million, the submission said.
Although Cayne and his wife have not lived in the building for more than six years, they continued to pay over $ 9,000 a month in maintenance costs.
Cayne was CEO of Bear Stearns for 15 years before resigning in 2008 amid criticism of his management style.
& # 39; In times of crisis, he was utterly unable & # 39 ;, wrote former Bear Stearns CEO Alan & # 39; Ace & # 39; Greenberg in his book from 2010, & # 39; The Rise and Fall of Bear Stearns. & # 39;
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