From the New York Post:
Dick Bove’s firm is still hustling for a lifeline.
Sixteen days after a rogue trader rocked Stamford, Conn.-based Rochdale Securities, the broker-dealer, still hasn’t reached a deal with a deep-pocketed investor, sources said.
“If not this week then the next,” said one person familiar, noting that the firm was not under pressure to find a so-called white knight to buy it or inject capital into the firm.
While the search for a savior continues, employees at the hobbled firm can only sit and wait.
Regulatory rules bar Rochdale’s traders from trading stock — which means they are relegated to nursing client relationships and offering stock guidance until the firm resolves the lingering capital shortfall.
Ho Ho Homeboy BoveRochdale’s shortfall may be anywhere from $5 million to $11 million.The firm, which does not trade using its own money but acts as an agent trading stock on behalf of its roster of clients, maintains net capital of about $3.5 million.The 37-year-old brokerage was rocked on Oct. 25 when a trader, identified by sources as David Miller, made an unauthorized purchase of $1 billion worth of Apple stock — 10 times more than his client requested.Miller, according to people familiar with his thinking, claims it was a mistake.Rochdale, sources said, believes the 40-year-old trader was part of a stock-manipulation scheme that may have netted him $20 million in profits....MORE