The Bear Stearns Companies Inc. has replaced the head of its asset management business, after a couple of its hedge funds ran into trouble.

The firm announced that, effective immediately, Jeffrey Lane has been named chairman and chief executive officer of Bear Stearns Asset Management (BSAM). Richard Marin, former BSAM chairman and chief executive officer, will remain with BSAM as a senior advisor to Lane.

Before joining BSAM, Lane held a number of roles at both Lehman Brothers and Neuberger Berman Inc. including serving as a vice chairman of Lehman Brothers, a member of the office of the chairman, chairman of the investment management division and co-head of asset management, and chairman of Neuberger Berman Inc. He joined Neuberger Berman, LLC in 1998 as a principal and chief administrative officer and rose through the organization to become its chief executive officer.

Lane was previously with Travelers Group as vice chairman where he worked closely with the chairman and chief executive officer in the management of the company’s various administrative functions and operating units. He had also been vice chairman of the company’s Smith Barney subsidiary, responsible for asset management, mutual funds, international, futures and commodities division.

Commenting on the appointment, James Cayne, chairman and chief executive officer of Bear Stearns, said, “Our focus is on restoring investor confidence in BSAM, serving our clients with excellence and assuring them of our commitment to provide them with the highest quality asset management products and services. Jeff’s experience and leadership combined with his successful track record make him an outstanding candidate to lead our asset management business at this time. We are extremely pleased to welcome him to Bear Stearns.”

Lane added, “I am proud to be joining Bear Stearns and I look forward to working with the entire BSAM team. I believe in the integrity of the franchise and I am excited about the prospect of continuing to build the BSAM organization.”