The future of Dick Bove’s firm is looking grim.
Stamford, Conn.-based Rochdale Securities is struggling to secure a deep-pocketed buyer three weeks after a former trader, identified as David Miller, saddled the firm with $1 billion in “unauthorized” Apple trades that it wasn’t able to cover.
CEO Dan Crowley has been working around the clock to identify a “white knight” willing to save the 55-person broker dealer, according to sources. But staffers of the 37-year old firm worry ongoing investigations will turn off suitors and impede the firm’s ability to operate as a broker dealer.
The FBI and regulators including the Securities and Exchange Commission and the Financial Industry Regulatory Authority are probing the errant trade. Finra has barred the firm from trading on behalf of clients until it resolves its capital shortfall, which could range from $5 million or $11 million.
Rochdale, which pays its staffers every two weeks, was able to make payroll on Friday, sources said.
Meanwhile, Crowley is working trying to retain key employees and clients. Bove, the firm’s influential bank analyst, has expressed a desire to stick around but might be forced to accept other job offers if a white knight doesn’t appear.
Rochdale’s sales staffers, who earn the bulk of their income from commissions, have been unable to trade for the past few weeks — a particularly vexing problem for some as the holiday bonus season is set to kick off.
Regulators are investigating whether Miller, who has not returned to work since placing his bet on Oct. 25, was seeking to manipulate Apple’s stock to make a profit. Last week, FBI agents visited the firm’s headquarters and pored over some of Miller’s e-mails, sources said.