Dick Bove, a ‘noted’ analyst at Rochdale Securities LLC, is expected to submit his resignation to the firm on Monday. The Wall Street Journal cites an anonymous source familiar with the matter.
Rochdale Securities has gotten into trouble because of an unauthorized trade involving Apple Inc. (NASDAQ:AAPL) shares in October. David Miller, a former trader at the firm, was charged with wire fraud earlier this month in connection with that trade.
Bove’s analysis and reports have been trusted by investors up and down Wall Street for many years. But the Journal said Bove hasn’t been able to publish any of his research on stocks lately because the cash shortfall caused by that trade resulted in the firm being unable to issue analysis or trade securities. More than 10 employees of Rochdale have deregistered with it since that troublesome trade occurred.
There has been speculation that Bove would also leave Rochdale for the last couple of weeks. Bloomberg quoted him earlier this month as saying that his “loyalty is with Dan Crowley” and that he wouldn’t decide what to do “until Dan threw in the towel.” At that time Bove said he was giving Crowley time to line up rescue financing to save the firm. He also reportedly told Bloomberg that he had narrowed down his choices to three different firms, although he did not release the names of those firms.
Reports in other publications over the last two weeks have also indicated that Bove was on the hunt for a new publication.