Around midday on Monday, Feb 27, Paul Miller, a veteran
banks researcher at FBR, got the news.
His services would be no longer needed.
Later that day, at CLSA Americas, Mike Mayo, a tie on the
finance-TV circuit famous for his confidant calls, listened something
similar. The US arm of the Chinese brokerage was
shutting its investigate unit.
The two events put a hindrance to their careers as analysts. It also
put a stop to a diversion the two had played for some-more than 5 years.
It started with a Bank of America gain call 5 years ago,
when the two dialed in and tried to ask a question. Neither was
queued up on the call after a mix-up.
From then on, the two had a foe every quarter. The name
of the game: always have your doubt answered after the other
The proof is straightforward. Bank executives infrequently reserve up
softball questions first on an gain call, anticipating to set a
certain tone. Being called on early was a chastisement in the diversion —
the researcher to get pushed to the finish of the line was clearly
doing a better pursuit of being tough on management.
Mayo and Miller would total the measure for any gain season.
A partial of the diversion was to supplement a bit of amour to what Miller —
who pronounced he has listened by 1,400 gain calls in his
career — called increasingly well-rehearsed and less-informative
“It was to mangle up the routine of listening to gain calls
over and over again, where they give you very little info,”
Miller told Business Insider. “No matter what tough doubt you
asked, the CEOs would give you a domestic answer.”
Mayo and Miller are also a little outward the Wall Street
mainstream, with Mayo famous for his big calls and Miller working
for a smaller shop. The game, according to Miller, was also a way
to make “fun of the system.”