Warren Spector, Bear Stearns’ co-president and co-chief operating officer, has resigned, reports the Associated Press. His resignation follows the meltdown of two hedge funds that invested in risky mortgage-backed securities. The resignation has led to a reshuffling of top-tier management responsibilities at the firm. Alan Schwartz, who was previously co-president and co-chief operating officer, will now be sole president. Samuel Molinaro Jr. will now handle both chief operating officer and cfo duties, while Jeffrey Mayer will take over Spector’s seat on the company’s executive committee. “In light of the recent events concerning (Bear Stearns Asset Management's) High Grade and Enhanced Leverage funds, we have determined to make changes in our leadership structure,” said James Cayne, chairman and chief executive. “I have every confidence in this team to continue Bear Stearns' 84-year legacy of success and profitable growth.” Spector had previously been seen as a likely successor to Cayne.