Bear Stearns Cos Inc, one of the largest global investment banks and securities trading and brokerage firms in the world, decided on Tuesday to appoint as the new CEO its star investment banker, Alan Schwartz, who will take the job of James Cayne and try to revitalize the firm’s damaged mortgage franchise.

Bear Stearns’ future as an independent company is very blurry as it was stung by big mortgage losses.

Alan Schwartz was chosen as the next chief executive by his predecessor, James “Jimmy'' Cayne, 73, who will reportedly remain as non-executive chairman. Schwartz has more than 30 years of experience with the company. The 57-year-old is well known for his collegial style, which is much needed at Bear Stearns in its attempt to rebuild confidence in the company, badly hurt by sub prime losses and a languishing stock price.

On the other hand, Cayne, who announced his retirement from the executive job, wasn’t known for his personal skills.

Steven Blondy, chief financial officer of R.H. Donnelley Corp. who's known Schwartz for the last ten years characterized Bear Stearns’ new CEO as “fundamentally…a people person.''

“He's most effective when working with people, internal and external. Those are some of the key qualities necessary to run an organization that relies on its people,'' Donnelley added.

Schwartz, who is known, first of all, as a composed adviser, said he does not intend to wait for a takeover bid to chart Bear's future.

"Being acquired is not a strategy," Schwartz told Reuters in a telephone interview.

In his statement, he said he intends to return Bear Stearns Cos Inc to strong profitability while pushing the company's expansion out of the country.

According to John Challenger, chief executive officer of Chicago-based placement firm Challenger, Gray & Christmas Inc., the giant investment company is now in desperate need of a leader who sets a different course from Cayne's. Through that new course he must win new business and build cohesive teams, said Gallagher fro Bloomberg.

The question is:  “Does the person have enough autonomy to change things? Have they just made a cosmetic change, or will they really turn the reins over to this person?''