Embattled Rochdale Securities may find it tough to hang on to one of its most prized assets: star bank analyst Dick Bove.
Bove is being courted by a bevy of rival firms with Rochdale teetering on the edge after it was rocked by $1 billion worth of unauthorized Apple trades.
The small brokerage, run by CEO Dan Crowley, blames a rogue trader, identified as David Miller, for making the massive bet without approval. The Federal Bureau of Investigation, along with regulators including the Financial Industry Regulatory Authority, are probing the matter.
Bove has pledged to stay at the firm while Crowley looks for a white knight willing to pony up $5 million or more to allow the Stamford, Conn., firm to continue operating as a broker-dealer.
If Rochdale, however, cannot find a cash infusion in the next few weeks, Bove will jump ship to another Wall Street firm, according to several sources close to him.
Finra has barred Rochdale from trading, and Bove isn’t allowed to distribute research to clients until the firm can assure the industry watchdog that it can meet capital requirements.
Employees have been receiving pay checks since the crisis unfolded more than a month ago and at least some employees were given bonuses last week, according to sources.
The firm declined to comment.