Bove leaves Ladenburg on conflict over lawsuit
BANGALORE (Reuters) - Veteran banking analyst Richard Bove has resigned from Ladenburg Thalmann following a disagreement over the settlement of a defamation lawsuit filed against him.
The analyst was sued by BankAtlantic Bancorp (BBX.N) in July 2008. The lawsuit accused the analyst of defaming the company by mentioning its name in a research note titled "Who is Next," two days after federal regulators seized IndyMac Bancorp Inc IDMC.PK, a large mortgage lending specialist.
Bove, who has made several media appearances at a time when most analysts stay away, joined Stamford, Connecticut-based institutional brokerage firm Rochdale Securities LLC.
"There is no merit to this case and this lawsuit is being used to intimidate me which it has succeeded in doing. It forced me out of my job," Bove told Reuters.
He has been with Ladenburg since May 2008, when the brokerage bought out his previous employer, Punk Ziegel.
Ladenburg spokeswoman Carrie Bloom declined to confirm any talks of a settlement with BankAtlantic.
"We thank Dick Bove for his contributions to Ladenburg and wish him the best in his future endeavors," Bloom said.
Among the analysts covering U.S. commercial banks, Bove was ranked 19th out of 84 analysts, according to StarMine data.
In July 2007, Bove correctly predicted that the booming growth of the financial system could not be sustained by economic growth.
Bove's rise to prominence, however, was not without controversies.
In March 2008, Bove said the U.S. financial crisis was over and it was a "once in a generation" opportunity to buy bank stocks, a call which clearly proved to be wrong.
Two months later, he recommended that clients sell shares of Goldman Sachs (GS.N), Lehman Brothers and Merrill Lynch.
Since joining the securities industry at the end of 1965, Bove worked his way up holding several positions, from a salesperson to the director of research, in various Wall Street firms.
(Editing by Jarshad Kakkrakandy)
