Bove Scrambles To Prove He Is Not Just Another Goldman Pawn: "Goldman Has Not Paid Either Me Or Rochdale Securities Anything For Years"

Tyler Durden's picture

In what can only be described as a case professional jealousy directed at NYT's DealBook, which as is now known has been quite well compensated by Goldman Sachs well in advance of Andrew Ross Sorkin's recent spirited defense of the mega hedgefund, Dick Bove once again confirms than when it comes to sellside research it is all about (very, very bruised) ego, and instead of attempting to articulate his first original thought since his second Buy rating on Lehman (hey, we said original, not correct) two weeks ahead of the biggest bankruptcy in history, the Rochdale analyst who for some incomprehensible reason continues to get air time says the following: "In response to the claims being made about me I can only offer the following comments. First, I am not aware of making any statements about Goldman and the SEC in what I wrote. Second, Mr. Cohen did not point out that Goldman lost $13.5 billion in its Investing and Lending division in 2008. Third, Goldman has the right to protect itself against changes in the mortgage or any other market. Fourth, I still have a Sell recommendation on the stock. Most important, from my perspective, is that Bloomberg is suggesting that I received something – i.e., “Goldman got to Bove” for writing the paragraph above. This may be unfair since Goldman Sachs has not paid either me or Rochdale Securities anything for years. The company is not a customer and for whatever reason it will not pay for my research." And who can blame them: from August 28, 2008: "Richard Bove is really hammering home a point about Lehman Brothers...“I repeat, that if Lehman does not take these actions it is likely that
an outsider will do this for the firm through a hostile takeover,” Bove
said.  ”This saga is not likely to continue much longer,” Bove wrote. But he
added that he believed the result will be a “positive one,” keeping his
“buy” rating on the stock
." For once, Goldman's decision is spot on.

Full Bove note:

  • A few days ago, I published the following paragraph: ”It is becoming increasingly apparent that a terrible wrong may have been done to Goldman Sachs. Evidence is now mounting that the company did not have a net short position at the crucial time under study and that the Senate Committee may have misread the numbers. It is also becoming apparent that Mr. Blankfein did not misrepresent to the Senate Committee because Goldman was not net short at the time the firm was accused of misrepresenting its position.”
  • This morning Bloomberg TV did a segment in which it claims that I made statements about the SEC investigation and that author Bill Cohen states that “I am full of hot air.” Further Bloomberg and Cohen argue that Goldman “got to Bove.”
  • This is good theater and tough stuff at the same time. Bill Cohen is a good guy who wrote a couple of informative books concerning Bear Stearns and Goldman Sachs. He is also a smart guy who does his homework. He does not believe that Goldman acted properly during the financial crisis of 2007 and 2008. Plus, he feels strongly that Goldman was wrong to be short mortgages when the market for that product unwound.
  • In response to the claims being made about me I can only offer the following comments. First, I am not aware of making any statements about Goldman and the SEC in what I wrote. Second, Mr. Cohen did not point out that Goldman lost $13.5 billion in its Investing and Lending division in 2008. Third, Goldman has the right to protect itself against changes in the mortgage or any other market. Fourth, I still have a Sell recommendation on the stock.
  • Most important, from my perspective, is that Bloomberg is suggesting that I received something – i.e., “Goldman got to Bove” for writing the paragraph above. This may be unfair since Goldman Sachs has not paid either me or Rochdale Securities anything for years. The company is not a customer and for whatever reason it will not pay for my research.
  • It should be noted that The New York Times and the Wall Street Journal have also written articles that agree with the one paragraph I wrote, which is above. Also, neither Senator Levin nor Bill Cohen, nor Bloomberg is willing to state that Goldman perjured itself in front of the Senate.
  • There is also smoke when one puts water on the fire.

Laughter all around.