Louis R. Davis and Linus Wilson. 2011. Good Timing? How One Bank Cut Its Link to a
$1.2 Billion Ponzi Scheme. Journal of Legal Economics 18(1): pp. 1-26.
Good Timing? How One Bank Cut Its Link to
a $1.2 Billion Ponzi Schemed
Louis R. Davis and Linus Wilson*
Abstract: On September 17, 2009, Boston Private Financial Holdings
(BPFH) sold Gibraltar Private Bank & Trust, a subsidiary based in Coral
Gables, Florida, for $93 million. Investors cheered the news of the sale
producing a 27 percent one-day return in BPFH after news of the
Gibraltar Bank sale was released, adding over $100 million of market
value overnight. On October 27, 2009, Scott Rothstein, a p