Bear Stearns Companies Inc. today named Alan Schwartz to succeed James Cayne as CEO.

While Cayne will retire from the firm, effective immediately, he will stay on as chairman of the board of directors of the Wall Street investment bank.

Schwartz joined Bear Stearns in 1976. He became executive vp and head of the Investment Banking Division in 1985. He was named president and co-chief operating officer in June 2001 and sole president in August of 2007.

“The company’s talent pool is particularly deep and the board is fortunate to have someone of Alan’s caliber and experience ready to step in to lead the company,” says Vincent Tese, Bear Stearns lead independent director. “Alan has spent more than 30 years at Bear Stearns; he deeply understands our business and culture, and he is a strong leader and manager who is admired and respected throughout the organization.”

“Although the operating environment has been difficult, we are off to a good start in 2008,” said Schwartz. “We remain excited about our core equity, banking and fixed income businesses, our international expansion initiatives, and the further development of our energy and wealth management platforms.”