Former Bear Stearns CEO: Leverage Was Too High

Anyone expecting fireworks Wednesday from former Bear Stearns Cos. Chief Executive James Cayne in his first public testimony since the securities firm nearly collapsed in 2008 was likely disappointed.

Mr. Cayne, known for his colorful and blunt style, gave polite and concise responses to the Financial Crisis Inquiry Commission in Washington.

At times, it seemed like the panel was caught off-guard by the matter-of-fact manner, beginning when Mr. Cayne kicked off his testimony by admitting that Bear's leverage was too high. "In retrospect, in hindsight, I would say leverage was too high," he said.

Of course, the former CEO never ...

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