Schwartz joined Bear Stearns in 1976 first working in Dallas and then in 1979, he was appointed the director of research and investment in New York City. In 1985, he became executive vice president and head of Bear Stearns' Investment Banking Division. He became Co-President and Co-COO on June 25, 2001. Schwartz became sole President and COO in August 2007 after Warren Spector (the original heir-apparent to Chairman and CEO Jimmy Cayne) was forced to resign in the wake of the collapse of two hedge funds, which foreshadowed the upcoming subprime mortgage crisis and financial meltdown. Schwartz became CEO in January 2008.