Bear Stearns chairman sells shares

James “Jimmy” Cayne, chairman of Bear Stearns Cos., sold his shares in the crippled securities firm for $61 million this week, before a vote on the company’s pending takeover by JPMorgan Chase & Co.

Cayne sold 5.66 million shares at $10.84 apiece Tuesday, according to a regulatory filing. His stake’s value had plunged from almost $1 billion last year, when the shares peaked at $171.50 before the sub-prime meltdown toppled two of the firm’s hedge funds and prompted a contraction in credit markets worldwide.

Cayne, 74, led Bear Stearns as chief executive for 15 years until January, when he stepped down after the New York-based firm posted its first loss. The company was forced to seek funding from the Federal Reserve and then submit to a takeover by JPMorgan after a run on the securities firm drained cash reserves.

Under JPMorgan’s offer, which it sweetened Monday, Bear Stearns shareholders will get JPMorgan stock that was valued at $10 per Bear Stearns share based on JPMorgan’s closing price Friday. The deal now is worth $9.32 a share based on Thursday’s close.

Meanwhile, Bear Stearns broker Douglas Sharon, who agreed to join Morgan Stanley’s Boston office, was temporarily barred from working there by a federal judge Thursday.