Skip to main content

Dick Bove's Spring Break Reading List

And now, we present you Dick Bove, book reviewer. In a note yesterday, Dick tells us about a great new read he recommends ("great" mostly because someone, finally, is agreeing with what he's been saying forever). It's called This Time is Different: Eight Centuries of Financial Folly and he wants you to pick up a copy today. Yes, it's "not an easy read," but fear not people, Dick broke it down for us: "I recommend that readers buy the book and just read chapters 10, 13, and 16 to get at the thrust of this massive effort. In fact, just read pages 270 to 273 to get at the core of this work." Or you know, just read Dick's notes. "They reach the same conclusion that I have. A flood of unregulated money that pours into a national economy creates the base for a financial collapse."

And here are some excerpts:
"Kaminsky and Reinhart's work concluded that financial liberalization often preceded banking crises. Demirguc-Kunt and Detragiache, who employed a different approach and a larger sample, arrived at the same conclusion."
"Diaz-Alejandro narrates financial liberalization simultaneously facilitates banks' access to external credit and more risky lending practices at home. After a while, following a boom in lending and asset prices, weakness in bank balance sheets become manifest and problems in the banking sector begin. Often these problems are more advanced in the shakier institutions (such as finance companies) than in the major banks."


Dick Bové Reenters The Spotlight In Manner Befitting Dick Bové

When regular old bank analysts switch firms, people don't tend to make a big deal about it. Gardening leave is taken, contracts are signed, key cards are distributed, new business cards are printed. Sometimes you'll get an email address with updated contact information. That's usually it. Dick Bové, as you all know, however, is no regular bank analyst. Which is following his departure from Rochdale Securities, potential employers didn't interview him, he interviewed them, why his son/spokesman, Joe Bové sent out a press release announcing the final countdown to Bové Day, and why, when that blessed day arrived, it was celebrated with a three-course banquet and a little something called the Dick Bové Banking Manifesto.

Dick Bové Has Whittled His Long List Of Offers Down To Three Lucky Firms

Dick Bove, the bank analyst whose brokerage, Rochdale Securities LLC, is struggling to survive after an unauthorized $1 billion Apple Inc. trade, said he’s been interviewing for a new job. Bove said he has narrowed his choice to three firms, which he declined to name, and will make a decision by about Dec. 15. The 71-year-old analyst said he’s giving Daniel Crowley, Rochdale’s chief executive officer, time to seek rescue financing after a loss on the Apple trade decimated the firm’s capital. “I indicated to them that my loyalty is with Dan Crowley and so I couldn’t make a decision until Dan threw in the towel,” Bove said today in a telephone interview. “The decision I make is really based on whether I want to stay with a small firm and write what I’m going to call provocative research or whether I want to go back in the general Wall Street milieu, dealing with corporate finance issues.” [Bloomberg]