Daniel Scotto
Daniel Scotto | |
|---|---|
| Born | Template:Birth date |
| Died | July 10, 2018 (aged 65) |
| Occupation | Financial analyst |
| Known for | Lowering rating on Enron securities prior to accounting scandal |
Daniel Scotto (September 14, 1952 – July 10, 2018) was a prominent American financial analyst. In August 2001, while employed at BNP Paribas, Scotto lowered his rating on Enron securities from "Buy" to "Neutral" several months prior to the revelation of the Enron accounting scandal, which ultimately led to the company's collapse. Scotto asserted that this rating adjustment resulted in his termination, a statement contested by BNP Paribas.
Biography
With close to thirty years dedicated to the study and evaluation of the Utility Industry, Scotto launched his career at Standard & Poor’s within Corporate Bond Rating, concentrating on electric, gas, and telecommunications sectors. Between 1982 and 1988, he served as Director of Corporate Bond Research at L. F. Rothschild, where he managed the utility research team. Subsequently, he took on the role of Director for High Grade and High Yield Corporate Bond research at Donaldson, Lufkin & Jenrette (DLJ) until 1994. Afterward, he joined Bear Stearns as Managing Director, overseeing High Grade, High Yield, and Emerging Market Research divisions, while also acting as Senior Electric Utility analyst. In April 2000, Scotto transitioned to BNP Paribas as Director of U.S. High Grade Research and Senior Utility Analyst.
Following his exit from BNP Paribas due to the Enron rating decision, Scotto established Whitehall Financial Advisors LLC in 2002. This firm specializes in delivering independent research, forensic financial analysis, and consultancy services to corporations, institutional investors, and policymakers.
He played a pivotal role in organizing major conferences addressing structural transformations within the Electric Utility sector and held influential positions in investment banking. Notably, he was a Senior Regulator/Company negotiator during the acquisition of Long Island Lighting Company (LILCO) by the Long Island Power Authority (LIPA). His other engagements included restructuring Western Resources, reorganizing Tucson Electric, and representing Sale-Lease Back Bondholders during the bankruptcy proceedings of El Paso Electric. In recognition of his professional excellence and embodiment of its principles, Pace University inducted him into Beta Gamma Sigma in 2008.
Prior to the Enron debacle, Institutional Investor Magazine acknowledged Scotto for his consistent guidance in steering investors away from high-risk segments amid industry deregulation.
He passed away on July 10, 2018, in Virginia.
References
- Notes
- Feature Article on Dan Scotto in The Wall Street Journal January 29, 2002
- Fast Company Article Referencing an interview by NBC's Matt Lauer
- https://web.archive.org/web/20070404031521/http://archive.pulp.tc/electric_perfect_storm.pdf New York's Perfect Storm: The Financial Condition of Electric Generating Companies in New York State
- Infrastructure and Financial Markets Review (page 9) March 2002 [1]