Samuel Molinaro, the former Bear Stearns Cos. chief financial officer, pulled out of talks to lead New York brokerage Pali Capital after a proposed merger with Braver Stern Securities Corp., a person familiar with the matter said.
Molinaro, 52, walked away because of pending lawsuits against Pali and because several key employees have left for other firms in recent weeks, said the person, who declined to be named because the discussions were private.
Pali said the talks with Braver Stern have broken down. “The firm is currently evaluating a range of strategic alternatives,” the company said in a statement, without elaborating.
Pali Holdings Inc., the parent of Pali Capital, told shareholders in a Jan. 14 letter that it may go out of business if it can’t arrange a cash infusion or sell the brokerage unit. Molinaro was Bear Stearns’s CFO from 1996 until 2008, when JPMorgan Chase & Co. purchased the company to save it from bankruptcy. He was in talks with Pali for about eight months.
Pali CEO Kevin Fisher declined to comment beyond the statement.
Pali has had four CEOs and co-CEOs in the past 15 months.