Bloomberg reports that Rochdale Securities LLC, the 37-year-old brokerage that employs bank analyst Dick Bove, is seeking a capital injection after a trading error, three people with knowledge of the firm’s situation told the news organisation.
Executives at Rochdale are telling employees and potential investors that a trader at the firm made an unauthorized purchase of Apple Inc. (AAPL) shares, which has eroded the capital of closely held Rochdale, said one of the people, who declined to be identified because the overtures have been private.
Rochdale Securities has been providing brokerage services to institutional clients since 1975.
The Wall Street Journal has now reported that the firm confirmed late Saturday that errant trading in shares of Apple had led it to seek outside help to stay afloat.
'Rochdale had an unauthorized trade that left us with a negative capital position. We are in talks that would result in a healthy balance sheet, and we expect to be trading maybe as early as Monday', said Rochdale President Daniel Crowley.
He said the unauthorized trading was in shares of Apple, and that, as of Saturday evening, the company was in talks with two firms for a possible injection of capital.
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image: © Justin Marty