It was announced today that analyst, Dick Bove, is set to join Rafferty Capital as his old firm, Rochdale bank continues to wobble. The analyst's old firm has been struggling since October, when a large scale unauthorized trade of Apple Inc. (NASDAQ:AAPL) shares resulted in huge loss for the firm.
The analyst released a note today, January 11, which declared that he would return to work soon. His son, Joe, said that Bove expects to be set up and to return to work by the 28th January.
Rumors have circled about Mr. Bove's departure since the second week of December. He was linked to several firms, but the most enduring of the rumors centered around Rafferty Capital. He will join several of his old colleagues at the new firm, including the Rochdale heads of trading, Kristin Talgo, and Hal Tunick.
After an unauthorized trade of Apple Inc. (NASDAQ:AAPL) shares back in October, the company was left in a negative capital position. The trade was worth around $1 billion, and lost the firm somewhere in the region of $5 million. The company ceased trading after that mistake was made, and its employees have begun moving to other firms.
Mr. Bove said he was choosing to head to Rafferty Capital because the firm does not have an asset management or investment banking sector. The analysts said that he would like to concentrate on research, and research alone, going forward. The attraction of investment banking may have lost its luster in the wake of the rogue trade which killed his previous employment.
Mr. Bove is perhaps most well known for the 2008 lawsuit filed against him by BankAtlantic Bancorp, after he named the financial services firm in a research note entitled "Who's Next?." The note asked which bank might be the next to fold to pressures from the mortgage market. BankAtlantic Bancorp was mentioned in the note, and sued the analyst for defamation.