Is Cuomo Hurting Wall Street?
While New York Attorney General Andrew M. Cuomo and the wirehouse broker-dealers say they are “pleased” with their recent ARS settlements, at least one industry veteran is appalled: financial-services equity analyst Richard Bove, who prefaces his analysis by saying that “the SEC has been lax in applying securities laws.”
Bove criticizes the ARS deals on several counts. First, citing Citigroup, he does not believe the agreement will improve the brand and reputation of the investment firm. Second, the deals jeopardize New York’s already tenuous position in the global marketplace. And, third, the agreements threaten innovation within the industry, which puts even further strains on New York’s status as a financial hub.
“While New York attorney generals are blithely pummeling the state’s financial industry, it should be noted that this industry is facing its severest competitive threat in 75 years,” he says.
“New York is fighting for its financial life in a new financial world,” he explains. “Giant New York financial firms are going begging to sovereign funds around the world looking for new capital as the American regulators punish the firms mercilessly.”