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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.

 

 

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Mon, 06/13/2011 - 11:45 | 1364897 TruthInSunshine
TruthInSunshine's picture

It is said that when all the hosts have died off, the parasites begin a race to try and consume each other.

Mon, 06/13/2011 - 11:44 | 1364906 bugs_
bugs_'s picture

a lot of people can say that Dick!  especially the American taxpayer that saved Goldman.

Mon, 06/13/2011 - 11:49 | 1364909 SheepDog-One
SheepDog-One's picture

Rats now scurrying to prove they have nothing to do with the Golden Slacks? Uh oh.

Mon, 06/13/2011 - 11:47 | 1364912 Cdad
Cdad's picture

Long Meredith Whitney/short Dick Bove.

Mon, 06/13/2011 - 11:51 | 1364918 Sir Real
Sir Real's picture

Thee protest too much.

Mon, 06/13/2011 - 11:49 | 1364922 OutLookingIn
OutLookingIn's picture

The more verbose the denial, the louder the words - the weaker the argument.

The "Screw-ups" are scrambling for the "CYA" button!

Mon, 06/13/2011 - 12:15 | 1364990 oogs66
oogs66's picture

yeah, though same applies to whitney, she has been trying to distance herself from her original call and even tried to deny making it

Mon, 06/13/2011 - 11:57 | 1364930 digalert
digalert's picture

Bove is a tool, a troll, an idiot.

Mon, 06/13/2011 - 11:55 | 1364934 monopoly
monopoly's picture

This is starting to make the Bernank look like second in command of the inmates. And this is Amerika. Yikes.

Mon, 06/13/2011 - 12:05 | 1364949 williambanzai7
williambanzai7's picture

Innocent until proven Bove...

Mon, 06/13/2011 - 12:10 | 1364974 Oh regional Indian
Oh regional Indian's picture

proven Bove-ine perhaps?

Moooooooooooo  ooore Bove-ine! (Sung like Summer Wine).

ORI

Mon, 06/13/2011 - 12:04 | 1364955 HowardBeale
HowardBeale's picture

Bove is as Bove does.

Mon, 06/13/2011 - 12:07 | 1364967 fastishplastic
fastishplastic's picture

following from a contrarian perspective that has proven again and again useful re goldman - if you're claiming goldman is making a call on bove, then i'd claim bove's sell call will do well. bove can kiss my ass but goldman's been more reliably consistent and predictable when it comes to wrong-bove's wrong is more spectacular, but hard to time.

Mon, 06/13/2011 - 12:13 | 1364972 Cdad
Cdad's picture

Any minute now, BlowHorn [CNBC] chart expert Carter Worth is going to reconsider his call for an S&P bounce off of the "smoothing mechanism" while simultaneously noting that the VIX, and despite a massive amount of suppressive trading schemes, has mounted, humped and impregnated its "smoothing mechanism" and is now sweet talking her big sister, aka the 200 day sma.  And if not Carter Worth, I'm sure P. Najarian will mention this VIXen Action...because P. Najarian always talks about the VIX when it is falling.

Any second now, holding my breath...

Until then, I guess more stories about Groupon and Facebook...stories that STILL have not recieved proper attention.

Mon, 06/13/2011 - 12:33 | 1365055 New American Re...
New American Revolution's picture

Thou doest protesteth, too much.

Mon, 06/13/2011 - 12:37 | 1365057 New American Re...
New American Revolution's picture

Thou doest protesteth, too much.

Mon, 06/13/2011 - 12:55 | 1365118 Prof Gulliver
Prof Gulliver's picture

"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."

Interesting construction, Dick. "May be"? I think he protesteth too little.

"The company is not a customer and for whatever reason it will not pay for my research."

Uh, Goldman may be wicked, but they ain't stupid. Funny stuff, Dick. Funny, funny stuff. 

 

Mon, 06/13/2011 - 13:05 | 1365143 knukles
knukles's picture

The competent commenting upon the innocent.

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