We reported several days ago that this would happen. It was previously reported earlier this month that Dick Bove had resigned from his position as an analyst at Rochdale Securities on account of a massive trading error in Apple Inc. (NASDAQ:AAPL) of about $1 billion. This error put the firm in a negative position, as described by President Daniel Crowly.
The noted bank analyst, 71, is going to serve as the lead researcher in his new position at the New York -based brokerage firm.
“The firm is well-established and has a commitment to independent research, the type I’ve enjoyed producing for many years,” Bove said in the statement.
Ever since the errant Apple Inc. (NASDAQ:AAPL) trade took place, Rochdale has been grappling with the situation while struggling to hold onto its existing staff by actively seeking deals to keep the brokerage firm afloat in the market. However, at least five Rochdale employees have been reported leaving the firm and moving to Rafferty. Co-heads of trading Kristen Talgo and Hal Tunich have also joined Rafferty, as reported by The Wall Street Journal.
Bove justifies his decision to leave the firm by stating that firm doesn’t have an asset management or investment banking branch. Bove believes that he has a potential opportunity in Rafferty to carry out the research he aspires to conduct.
“I really wanted to do pure research and nothing else. Rafferty gives me that opportunity,” he said.
It is notable that speculations abut Bove’s status in his former company swirled within the market ever since the regulators asked Rochdale to halt operations because of the massive loss on Apple Inc. (NASDAQ:AAPL) trade.