Henry Blodget, the analyst who never met an equity he didn’t like, is facing $4mm in fines for his part in the Internet boom. As part of the settlement he isn’t, of course, admitting or denying anything, de rigeur for these sorts of things. But he is barred from future employment in the brokerage business.
You would think that latter stipulation wouldn’t be necessary. After all, the trouble with Henry is that he confused being an equity analyst with being a Howe Street promoter: he loved all of his companies, favoring them all with variants of Buy ratings for the duration of his tenure at Oppenheimer and, especially, Merrill Lynch. Who would want someone like that as an employee now that the days of equity miracles and wonder are gone?
Well, you’d be amazed how many people would. In the sundry circles of financial hell outside the blue-chip brokers there are oodles of financial outfits that would happily benefit from the halo that comes from having Henry hanging around. And rest assured, there would still be a halo, bizarre as that might sound.
So what has Henry had to say? No comment, so far. But should he be surprised at the development? No, of course not. Will he be? Now there is a puzzler.
When Blodgett left Merrill Lynch he made the bizarre pronouncement that he would write a book, which is par for the course on the U.S. path to redemption. But he also said, according to the New York Times, that he would then, perhaps, “seek a job at a hedge fund or money management firm”.
Oh Henry! It is delusional, but it is par for the course for this tirelessly optimistic ex-analyst. From equity picks to career hallucinations, Blodget is truly one of the most sunniest sorts anywhere.