Charlie Gasparino claimed he learned that James Cayne, the former CEO of Bear Stearns, paid a $2 million private settlement to a female employee. This hush money was to seal her lips and prevent her from filing a sexual harassment lawsuit against Alan “Ace” Greenberg, the chairman of Bear Stearns.

The woman was allegedly younger than Greenberg and worked in the sales section. She had asked for more than $2 million so her compensation was quite a bargain to Bear Stearns.

Greenberg, 81, denied the allegations made by Gasparino on the sex harassment case. Greenberg denied or refused to comment on the claim that Bear Stearns paid out money to settle the accusations. Greenberg refused to comment on the story.

JP Morgan, who bought over Bear Stearns, had its spokesman say that the firm had no comment on this story.

If there were no truths to the story, Greenberg might have threatened to sue by now.

Charlie Gasparino on Alan “Ace” Greenberg story.

Updated May 18 2009

Judy Myers, a former Bear Stearns floater/Executive Assistant, emailed this site to give her personal opinion of Alan Greenberg. Ms Myers vouched for the good reputation of Greenberg.

Ace Greenberg & Judy Myers Interview video link.

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This entry was posted on Wednesday, April 29th, 2009 at 7:06 pm and is filed under Gossip.