Rochdale Securities, the brokerage struggling to survive after an unapproved $1bn trade in Apple Inc. went sour, lost its two co-heads of trading to a rival firm.
Bloomberg reports that Kristen Talgo and Hal Tunick, who led equities institutional trading from Rochdale’s Stamford, Connecticut headquarters, have joined Rafferty Capital Markets LLC, Financial Industry Regulatory Authority records show. The two collectively owned 20% to 50% of Rochdale, according to Finra records.
'If the senior people are bailing out, it’s obvious they don’t have much confidence', said Richard Lipstein, managing director of New York-based recruiting firm Gilbert Tweed International. Lipstein, who hasn’t been involved in the moves, said the traders may have forfeited compensation by leaving.
Rochdale President Daniel J. Crowley is seeking a rescue for the 37-year-old company, home of Dick Bove, the analyst known for his coverage of the biggest U.S. banks. The brokerage hasn’t been allowed to trade since telling regulators last month that the Apple purchase had drained its cushion for losses, said two people with knowledge of the situation. That left employees unable to earn commissions, said the people, who asked for anonymity because they weren’t authorized to comment publicly.
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