Bear Stearns alum twice burned

In a dramatic comeback, the defunct firm's longtime CFO was about to be named CEO of Pali Capital. It wasn't meant to be
MAY 05, 2010
Few things are more cringe-inducing than watching an old star try to make a comeback —a nd fail. Former Bear Stearns Chief Financial Officer Samuel Molinaro's return to Wall Street was foiled when Pali Capital, the investment firm that was just about to name him chief executive, filed for bankruptcy. Pali Holdings, the firm's parent company, filed for Chapter 11 protection in U.S. Bankruptcy Court in the Southern District of New York after a last-ditch effort to sell the broker-dealer to Braver Stern Securities fell apart. Mr. Molinaro, who had spent more than 20 years at the late Bear Stearns, was helping with the negotiations and would have become CEO of the combined firm, had the deal gone through. But with just $716,300 in assets and nearly $32 million in debt, according to the filing, Pali Capital couldn't consummate the deal. Over the past two years the investment boutique had lost about $40 million, according to reports, and quickly burned through $3 million in emergency bridge financing secured in November. The largest unsecured creditor was Panama-based Mandeville Holding Ventures Co., which was owed $20 million, according to the filing. Pali has gone through four chief executives over the past year and a half, ever since one of its founders, Brad Reifler, resigned in a dispute with co-founder Bert Cohen and shareholders. Mr. Reifler—who founded the firm in the mid-1990s while working at Refco, the disgraced commodities firm founded by his grandfather—was accused of siphoning millions of dollars from Pali for his own pet projects. A nasty lawsuit between the two men in 2008 ended in Mr. Reifler's departure. Pali Capital, which had as many 250 employees at its peak, was probably best known for its two star analysts, tech guru Walter Piecyk and media maven Richard Greenfield, who together led the firm's research department. The pair jumped ship in March, taking jobs at Manhattan-based broker-dealer BTIG. [This story, which was written by Hilary Potkewitz, first appeared In Crain's New York Business, a sister publication of Investmentnews.]

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.