Richard Bove's planned resignation stirs controversy
It takes a lot to muzzle Richard Bove, who is among the most widely quoted bank stock analysts.
He's been forced into an uncharacteristic silence since October 25, when a scandal involving a rogue trade by someone at Rochdale Securities forced the bank to stop trading and cease issuing stock research. The search for a White Knight buyer has not proven fruitful. Meanwhile, the industry continues to move ahead, leaving Bove to gnash his teach in enforced silence.
He's now letting it be known that he intends to leave Rochdale, but that may not be so simple. The fact is that Bove's presence at the firm has been used by Rochdale executives in their negotiations with potential buyers, according to Dow Jones. It's unclear if the firm intends to play hardball with Bove, but this is certainly an odd situation. Bove has proven to be the media magnet that Rochdale sought when it signed the analyst. Losing him now just might spell the end of the firm.
As for Bove, it's unclear exactly what his plans are. He may have another employer lined up. One might guess is that it would be another small broker dealer looking for a media presence. The rumor mill holds that he's in talks with Cantor Fitzgerald.
I can only hope they have strict controls in place that would prevent outsized trades from sinking the company.
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