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How A Misplaced Decimal Comma Left Dick Bove Unemployed
Well-known permabull financial analyst Dick Bove lost his job in November 2012. Not due to his ineptness, but due to his Rochdale Securities colleague David Miller who today plead guilty to wire fraud and conspiracy over an epic Apple trade gone wrong. As Reuters reports, Miller faces a maximum 25 years (though is expected to suffer less) after falsely telling his bosses that he executed a 1,625 share trade for a client, when in fact he bought 1,623,375 shares of the 'never-gonna-fall' stock on the day of its earnings release (October 25th 2012). When the bet backfired, Rochdale was on the hook for the losses which led the firm to cease operations and to provide the market with a brief respite from Bove's 'loan-loss-provision'-ignoring, 'we're-going-to-the-moon-Alice' investment advice on US banks. What a difference a decimal place makes...
A former Rochdale Securities trader whose unauthorized purchase of about $1 billion of Apple Inc (AAPL.O) stock caused the demise of the financial services company pleaded guilty on Monday to wire fraud and conspiracy.
David Miller, 40, entered his guilty plea before U.S. Magistrate Judge Donna Martinez in Hartford, Connecticut.
Miller faces a maximum 25 years in prison when he is sentenced on July 8, but under a plea agreement he could receive a term of five to eight years. The Rockville Centre, New York resident is free on bond.
...
The U.S. Securities and Exchange Commission filed a related civil fraud lawsuit against Miller on Monday.
Prosecutors said Miller bought 1.625 million Apple shares on October 25, 2012, the day the maker of iPads, iPods and iPhones planned to report third-quarter results, hoping to profit if the company's share price rose.
But they said Miller falsely told Rochdale that the trade was for a customer that had in fact ordered just 1,625 shares.
When the bet backfired, Rochdale was on the hook for $5.3 million of losses on the extra 1,623,375 shares, leaving the Stamford, Connecticut-based company undercapitalized, the SEC said in court papers.
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The SEC said as a result of Miller's bets, Rochdale ceased operations and its staff left or was fired in November 2012. On February 25, Rochdale asked Connecticut, the SEC and other regulators to withdraw its registrations.
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At the time of the loss, Rochdale was the home of prominent banking analyst Richard Bove.
and a blast from the past for Dick from August 2008 (a month before Lehman) - though the list goes on...
"If you take a look at the structure of the banking industry right now, you will see there is more equity in the banks than their has been for the last couple of years; deposits are rising, reserves are higher, and their loan volume is growing. I would argue they are in pretty good shape.
You might see failures among the lowest 6000 banks but it won't have an impact on the system."
Full clip below:
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Dick says BUY AAPL before earnings. What a dick.
I don't know who he is, because I don't follow soothsayers. Especially unemployed ones.
And how much time is Bovine going to spend in the hooscow? What!? NONE!?
Damn. I was hoping. Hoping that kid would be screming and pointing his finger, accusing Dick of ordering him to do it. Take him down with you, son! Do us all a favor!
Ah, well. Maybe next time.
So trader Dave of ex-nee-Roachmotel Securities goes to Prison.
Great demonstration of how bad deals get people punished
Watch out, TBTF's
So if he told the truth (that he bought 1.6M instead of 1.6K shares), he wouldn't be guilty now?
Dick bovine is cnbs biggest's asshole and that my friends says a lot.
THe man made of shit. Scientist's said it could not be done, but dicky proved it.
Dick Bovay also misplaced his accent aigu.
He just forgot the 375 shares at the end is all...that's not such a big deal. lol
Roll that 'Fat Bastard' in salt and throw him in the cellar...
Has anybody seen Corzine lately?
Of course not. He would have been killed with bare hands, if he were to show up in reach of "the 99 %". So he doesn't.
"All of the firm's significant business decisions were subject to review, debate and approval by MF Global's board."
- Jon Corzine
That misrepresentation is much more than a mere misplaced comma. Why not just call it like it is - a bald faced, self-serving lie?
How did anyone higher up at the firm not know the real number of shares bought? You ask the guy but don't review his activity? And how does a $5 million loss bankrupt a firm of their reputation? Much more going on here than is being told.
So you're slightly skeptical we're getting the full story? ;)
hahahahahahahahahahahahahahahahaha!
His last name is "Bove?" With the way he shills Bank of America stock, I thought his name was Dick Bofa (?).
Dickless Bovine- formerly of Cockroachdale securities
25 years is good enough for him.
Ignoring the fraud element it's just about the dumbest trade I ever heard.
The guy must have had a suicide wish, for placing such a trade.
Guy loses $5 million - gets 5-8 years. Lose trillions, get taxpayer bailout - get off Scott-free. Justice.
Free John Corzine.
Endless Bove
Blue Buffoon
Okay I watched 20 seconds of the video and Bove was introduced as "one of the first bank analysts to warn of the housing crisis"... my question is with so many analysts now being introduced in that manner why is it that the meme of the time was "nobody could have seen this coming"?
I caught that, too. Sure was news to me as well. This fucking market shit is corrupt to the core.
The meme has gone from "nobody could've seen this coming" to "everyone predicted this" in a few short years. Next we'll hear Cramer warned everyone of Bear Stearns eminent collapse
In other news, we've always been at war with Eastasia.
Right
Until we aren't
Guys the collapse happened in March 2008, when Lehmans shares dumped by 48%- doesn't take genius in summer time to tell you of .... housing/banking crisis when it happened in march.
Fuck him. Makes me ill just to look at his face and hear his voice.
"prominent banking analyst" ... Maybe he should analize something real ... like samples from fukushima or something like that ... should suit him fine... I've heard the pay is good, too
Bove is on CNBC today touting bank stocks as being 'dirt cheap'. they seem to pull that clip out every couple of weeks.
This just shows how little respect CNBS has for their viewers. Before and during the subprime crisis in 2007-8 he was constantly touting the bank stocks. Anyone who followed his advice would have lost a large percentage of their net worth.
He is not a contrary indicator. He just always touts bank stocks. And these programs always introduce him as a distinguished banking expert when his track record proves he knows nothing.
Anything can be "dirt cheap" when the pricing structure is altered, fixed, and falsified. Enter FASB. The fact that Bove is talking up such horrendous gimmickery and fraud on TV just shows the world he is one of two kinds: Self serving, or stupid. And I still don't know who he is because the world is full of attention-seeking soothsayers like him that I don't have time for.
That moron was on CNBS about a week ago claiming that TBTF was needed for the USA to compete on a global level. Dick Bove = bankster fluffer
Bove is constantly pushing his views. Today on CNBS, he urged that banks are cheap and misvalued. Anyone like Bove, who wants their message heard so emphatically shoould get off TV and instead pen a book. In a book, a cogent argument can be made and judged by reviews.
It helps no one to keep hearing some disjointed sound bites from the same talking heads day after day.
Today on CNBS, he urged that banks are cheap and misvalued.
TV and Hollywood are for retards. All of it, TV and Hollywood, is to lie,brainwash and manipulate the public. Dickless Bovine is a paid Operation Mockingbird shill. If you lie for the overlords - you get on Tv and get paid nice money and maybe get a house in Greenwich or at least New Caanan or Westport, CT. You get to move out of Yonkers or Staten Island.
Lie to get the pubic, who are as dumb as feces if they watch TV, and get them to believe the banks are solvent. They lie lie lie and the public, like retards, believes it because it is on TV.
Criminals, criminals, and moar criminals. What's a poor stranger in the land to do?
SHINE THE LIGHT! It is good for one, and good for you.
Watch this criminal in action as he bold faced lies about the foreknowledge about these drills that were turned into a False Flag Event in Boston yesterday.
http://leaksource.wordpress.com/2013/04/15/was-boston-bomb-squad-running...
Criminals, criminals, criminals, report to your nearest prison soon!
And hey you military people, We the American People love you ALL. We are NOT your enemies, we are your country folks at home and we are ALL AMERICANS in the heartland. Please stop being part of the babylonian empire of dust that is falling fast. DO NOT BE THE NEW NAZI'S in the near future, because everyone knows what happened to them. Support your country. Support your people, for THEY are the government, and NOT the rudderless leader babylonians that call money god, and run you all around like trained lap-dogs doing their evil bidding that YES, will eventually kill YOU and YOURS also if YOU let it.
Stand with America.
United WE ALL STAND NOW...or for the lack of real truthful knowledge...we ALL PERISH LATER.
May God speed the Lightbrigaders.
In the USA, Uk et al - do they all run drills just before their false flags? They did in the UK just before the train bombing. Did they do it in Spain before their bombing?
Oy Vey Bove'. What a twerp. Another douchebaggus maximus.
Dude's a crook. Doesn't like water. Stinks worse than dogs that have rolled in road kill.
Won't be long---face down in his dinner plate----coronary
I am fucking gobsmacked.
You punish fraudulant criminals? Fuck me, next thing grass is green?
How much prison time would Miller face if his trade turned a profit?
That's when they make you a partner!
PSSt Psst Buffy is gonna buy WLT.
Ironically enough this is why I didn't get into Yale.
http://www.youtube.com/watch?v=ZS2Z19yTuPISurprised the Dick is still working. Wasn't he let go before?
Maybe he can put on a dress, shave his beard and grow his hair longer, and transform into another Abby Joseph Cohen.
He's the typical Wall Street flimflam man.
Inside the criminal crony system your crimes are called genius. Outside the criminal crony system, you get 25years.
I haven't missed his bloviating in the MSM, I can tell you that.
The SEC should have given Miller an award for ridding the planet of Roachdale and Bove
Do a credit default trade - Skilling out - Bove in!
"What a difference a decimal place makes..."
Is that supposed to be wit Tyler?
Of course orders of magnitude make a big difference. You're playing on decimal places as a measure of accuracy, ie digits after the point, but that isn't the issue here.
Maybe it is funny after a few lines of blow?
You insult your readers intelligence and show the limits of your own.
WRONG! Scientists and engineers often talk about slipping some digits (like losing fingers?) ... decimal-point term does some minimizing.
The piece was about MINIMIZING errors. Gosh and by golly ....
A misplaced comma is better than missing a period
Bove Dick is thehe perfect indicator to short the heck out of TBTF.
I think it is not a decimal place difference, but a three decimal place difference. Like the difference between 1 and 100.
doncha just hate it when the smartass corrector gets it wrong?
the, yes, three decimal point difference is "Like the difference between 1 and 1000 ."
You sure the loss was $5.3MM? seems light?