Rochdale seeking rescue after Apple trades sour

Brokerage that employs bank analyst Dick Bove in advanced talks on deal

Nov 5, 2012 @ 12:22 pm

brokerage
+ Zoom
(Bloomberg)

Rochdale Securities LLC, the brokerage that employs bank analyst Dick Bove, is in advanced talks to save the firm after unauthorized trades in Apple Inc. (AAPL) went sour, said two people with knowledge of the negotiations.

Rochdale may announce a merger or investment as early as today, said the people, who asked for anonymity because the negotiations are private. The deal to prop up the 37-year-old company could still fall apart, one of the people said.

Top Rochdale executives told potential investors that a trader bought $750 million to $1 billion in Apple shares last month without permission, the people said. The stock then dropped in value by a few million dollars and depleted the firm's cushion against losses, the people said. Closely held Rochdale had $3.44 million of capital at the end of last year, according to a regulatory filing.

The trader worked at Rochdale's Stamford, Connecticut, headquarters and bought Apple's stock around the time of the technology company's Oct. 25 earnings report, said two people with knowledge of the transaction.

The firm has approached investors including rival brokerages such as BNY ConvergEx Group LLC, the people said. Rochdale President Daniel J. Crowley didn't return calls seeking comment on the status of his firm.

Rochdale has provided trading and research for institutional clients since 1975, according to the company's website. Its most visible analysts include Bove, 71, who covers the biggest U.S. banks. The firm has 26 registered representatives in Stamford and six in New York, Financial Industry Regulatory Authority records show.

--Bloomberg News--

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Carson Group's Schaben: Making sense of millennials

Lazy, entitled, the trophy generation: These are stereotypes most often associated with millennials. But why are these myths and not realities. Carson Group's Aaron Schaben explains.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

TD Ameritrade triples time before it charges fees on popular ETFs

Extending free trading of Vanguard and iShare ETFs to January.

Trump rejects idea of new caps on 401(k) savings in tax plan

GOP reportedly had been considering reducing the cap on the annual amount workers can set aside for 401(k)s.

Finra's stats reveal an industry in decline

The broker-dealer regulator reports fewer entities under its watchful eye.

T. Rowe Price steps up its game to serve financial advisers

The Baltimore-based mutual fund giant is more aggressively targeting financial advisers with a beefed-up wholesale crew and placement on custodial platforms.

The most important tax changes for 2018

The Internal Revenue Service issued inflation adjustments to more than 50 tax provisions for 2018.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print