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Jefferies -20%, Halted, Unhalted, Halted, Unhalted As Market Seems To Have Found The Next MF

Tyler Durden's picture


UPDATE 4: Resumed Trading again

UPDATE 3: JEF halted again

UPDATE 2: JEF resumes trading, dead cat bounce

UPDATE: -20% now, halted

Presented without comment suffice to say that while everyone is focusing on Europe, the US may be about to have its second failed Primary Dealer in a week (and to note the cockroach reference from yesterday):


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Thu, 11/03/2011 - 10:00 | 1841033 holdbuysell
holdbuysell's picture

Good night.

Thu, 11/03/2011 - 10:01 | 1841041 jdelano
jdelano's picture

Who's next?

Thu, 11/03/2011 - 10:03 | 1841049 DormRoom
DormRoom's picture

who isn't next?  They are all likely massively leveraged up on client's money.

Thu, 11/03/2011 - 10:07 | 1841081 kaiserhoff
kaiserhoff's picture

Carry trades finally blowing up.  Dominos anyone?

Thu, 11/03/2011 - 10:39 | 1841275 Cthonic
Cthonic's picture

LOL.  Perhaps it's time to change that last name to something like Freefallin.

Thu, 11/03/2011 - 10:12 | 1841104 GetZeeGold
GetZeeGold's picture



Would you like to play a game of tic-tac-toe?

Thu, 11/03/2011 - 10:20 | 1841159 Ancona
Ancona's picture

No, I want to play Global Thermonuclear War.

Thu, 11/03/2011 - 11:02 | 1841449 cbxer55
cbxer55's picture

How many players?

Thu, 11/03/2011 - 10:12 | 1841102 jdelano
jdelano's picture

not bad.  only took you about 50 posts to get a +1 out of a stingy bastard like me.

Thu, 11/03/2011 - 10:21 | 1841157 Vergeltung
Vergeltung's picture

well played sir.



Thu, 11/03/2011 - 10:08 | 1841085 rosex229
rosex229's picture

the 3rd bank to collapse from the euro debt crisis. how many more until lending freezes up.

it wasn't lehman, bear sterns, aig, or northern rock that began the 2008 collapse, but the combination and psychological effect of knowledge that a number of 'healthy' banks were failing. 

the only question is how many more before the tipping point is crossed...

Thu, 11/03/2011 - 10:15 | 1841126 Irish66
Irish66's picture

they are a broker dealer..can you say holy moly

Thu, 11/03/2011 - 10:26 | 1841180 DormRoom
DormRoom's picture

I'm ignorant of banking.  But could they borrow more from repo to leverage up, by using client money, then depositing the money back into client's account @ midnight, when the sweeps occur?  Could they do this to leverage up more than they otherwise could? I don't how know anyone can trust bankers, if this is standard operating procedure in modern finance.



Thu, 11/03/2011 - 10:05 | 1841065 RemiG2010
RemiG2010's picture

Good night and good bye.

Thu, 11/03/2011 - 10:15 | 1841124 Snidley Whipsnae
Snidley Whipsnae's picture

Any thread that excludes 'Greece' or 'Greek' can't be all bad... I give up... save me from more bs Euro headlines... pleeeze.

At last a respite.

Thu, 11/03/2011 - 10:01 | 1841037 YesWeKahn
YesWeKahn's picture

Isn't that Robo's darling stock?

Thu, 11/03/2011 - 10:03 | 1841057 kito
kito's picture

all stocks are robos darlings

Thu, 11/03/2011 - 10:14 | 1841117 kaiserhoff
kaiserhoff's picture

au contraire, kind sir.  They are Robo's darlings the day AFTER they go up 10%.

Thu, 11/03/2011 - 10:05 | 1841070 Everybodys All ...
Everybodys All American's picture

Robo is a Bernanke shill

Thu, 11/03/2011 - 10:07 | 1841079 Kyron95131
Kyron95131's picture

what stock isn't dude?


screw that lil self appointed defender of the stutus quo AKA king douche chills



Thu, 11/03/2011 - 12:08 | 1841853 ParaZite
ParaZite's picture

LOL. Your Icon. I see what you did there... :D

Thu, 11/03/2011 - 10:01 | 1841043 lizzy36
lizzy36's picture

That's going to leave a mark.

Thu, 11/03/2011 - 10:02 | 1841044 Lord Maximus
Lord Maximus's picture

Where there's Smoke....There's MerKozy


Thu, 11/03/2011 - 10:44 | 1841142 RemiG2010
RemiG2010's picture


Thu, 11/03/2011 - 10:02 | 1841045 russki standart
russki standart's picture

Here is comes....more bailouts, more theft from the taxpayers. The too big to fail will fuck the too small to save, again.

Thu, 11/03/2011 - 10:34 | 1841248 kridkrid
kridkrid's picture

someday this war's going to end

Thu, 11/03/2011 - 11:48 | 1841746 MarkTwain00
MarkTwain00's picture

Charlie don't Surf!

Thu, 11/03/2011 - 10:02 | 1841046 RaymondKHessel
RaymondKHessel's picture

But But Jefferies says they are no MF Global!

Thu, 11/03/2011 - 10:02 | 1841047 tallen
tallen's picture


Thu, 11/03/2011 - 10:02 | 1841048 qussl3
qussl3's picture

Is it time to panic yet?


Who's next?

My bet is on France.

Thu, 11/03/2011 - 10:03 | 1841052 fizz
fizz's picture

Oh boy. the domino's...they are a tipping

Thu, 11/03/2011 - 10:03 | 1841053 I am a Man I am...
I am a Man I am Forty's picture

You don't want Egan-Jones talking shit about your company, very bad sign.

Thu, 11/03/2011 - 10:03 | 1841055 PulauHantu29
PulauHantu29's picture

Freddie Mac reports loss, seeks $6.0 bln

Thu, 11/03/2011 - 10:08 | 1841082 Temporalist
Temporalist's picture

"Despite an income of $4.6 billion, the company registered a net worth deficit of $6.0 billion, which was partly attributed to the $1.6 billion quarterly dividend payment owed to the Treasury." 


At least Timmay Geethner knows how to get his money back.

Thu, 11/03/2011 - 10:19 | 1841145 Snidley Whipsnae
Snidley Whipsnae's picture

Jeff plan is to make it up on volumn...

Thu, 11/03/2011 - 10:08 | 1841084 MFL8240
MFL8240's picture

Yet these bastards are paying out 12 million in bonuses to the CEO's.  This country is out of control and Obama must get the hell out of our lifes.

Thu, 11/03/2011 - 10:34 | 1841252 Chump
Chump's picture

This country is out of control and Obama, along with the rest of our worthless government, must get the hell out of our lifes.




Thu, 11/03/2011 - 12:25 | 1841937 Socratic Dog
Socratic Dog's picture

I get so fucking sick of this petty partisan bullshit, when it's so clear that both sides are taking us down in concert.  I changed my registration to republican a few days ago (from 'undeclared" or something), so I can vote for Ron Paul in the primaries.  Yesterday I get an urgent mailing from the repubs, all covered in red stamps and shit, they're desperate for my opinion on a few vital issues.  Like "do you support Obama's decimation of military spending", or words to that effect.  Into the trash it went.  Yeah, I'd support it, IF it was fucking  true.  None of those assholes will ever consider cutting military spending, but they try to paint eachother as weak on "defence".  They all make me fucking sick, and so do the morons who still think in their terms of one being good and the other bad.  This truly is Nero, fiddling while the republic burns down around their ears.

Thu, 11/03/2011 - 13:44 | 1842340 Freddie
Freddie's picture

...weak on "defence". 

Defence?  WTF - Obama wants to cut money to the RAF and Her Majesty's Navy?  Blimey.

Thu, 11/03/2011 - 10:38 | 1841267 kridkrid
kridkrid's picture

Yes... this country is out of control, but Obama has nothing to do with it.  He's a symbol provided to give some hope and others someone to blame.  He's neither and really no different from the narcissists who came before him.

Thu, 11/03/2011 - 10:03 | 1841056 the not so migh...
the not so mighty maximiza's picture

will we have cascading failure?

Thu, 11/03/2011 - 10:04 | 1841060 Mohan
Mohan's picture


Thu, 11/03/2011 - 10:04 | 1841061 Ignorance is bliss
Ignorance is bliss's picture

Another Commoditiy market maker bites the dust. I wonder what just hit the fan, and what will be the domino effect.

Thu, 11/03/2011 - 10:04 | 1841064 alexwest
alexwest's picture

did they buy Greece 1 year bond yielding 150% too and only watched yield going to 200%?

hint: yeild is higher, price is lower .. :)



Thu, 11/03/2011 - 10:05 | 1841067 Dr. Engali
Dr. Engali's picture

Nice. Now if only the squiddy chart would follow suit. My puts would be sitting pretty.

Thu, 11/03/2011 - 10:05 | 1841069 radarsentinel
radarsentinel's picture

Market selling off hard.  Need more RUMORS! Said in the style of SuddenDebt's avatar.


Thu, 11/03/2011 - 10:05 | 1841073 NOTW777
NOTW777's picture

dow and spx showing H & S

Thu, 11/03/2011 - 10:05 | 1841074 bdc63
bdc63's picture

but ... but ... but ... they promised there woudn't be any contagion ...

Thu, 11/03/2011 - 10:06 | 1841076 Reform1776
Reform1776's picture

This is likely the result of some nefarious "fringe bloggers"

Thu, 11/03/2011 - 10:06 | 1841078 FoieGras
FoieGras's picture

Segregated my ass.

Thu, 11/03/2011 - 10:08 | 1841083 alexwest
alexwest's picture



Thu, 11/03/2011 - 10:10 | 1841091 the not so migh...
the not so mighty maximiza's picture

their is only one option, they pay you to borrow money.

Thu, 11/03/2011 - 10:28 | 1841217 LongBallsShortBrains
LongBallsShortBrains's picture

That would fix the governments debt problems fast. Roll all debt to negative interest. Get paid to be the big debtor. We could lose the IRS and lots of other taxes. The more we borrow, the richer we become!!!!!
Wouldn't look too good on the Feds balance sheet..... Oh well it's all just pretend zeros anyway, I wonder why nobody has thought to implement such a plan......
We could let the bankers keep making their juice, just make it off the lender, not the borrower.
I know I would borrow and spend like crazy if they paid me to do it..

What is wrong with this picture?

/lame sarc

Thu, 11/03/2011 - 10:41 | 1841284 azusgm
azusgm's picture

Rewards cards.

Thu, 11/03/2011 - 10:11 | 1841087 sasebo
sasebo's picture

More OPM down the rat hole. The rats are getting fatter by the minute. Too many stupid assholes.

As soon as we get rid of all the stupid assholes everything will be fine.

Thu, 11/03/2011 - 10:09 | 1841088 Jason T
Jason T's picture

 Game Over

"Insert Coin"

Thu, 11/03/2011 - 10:11 | 1841095 TheSheepWolf
TheSheepWolf's picture

A gold coin? 

Thu, 11/03/2011 - 10:13 | 1841109 Gief Gold Plox
Gief Gold Plox's picture

"Insert Gold Coin" Fixed :)

Damn it! Too slow again. Bah.

Thu, 11/03/2011 - 10:14 | 1841122 JohnG
JohnG's picture

That will take quite a while. there are more every day.

Thu, 11/03/2011 - 10:11 | 1841098 kito
kito's picture

only when the squid is destroyed can we rejoice

Thu, 11/03/2011 - 10:15 | 1841129 semperfi
semperfi's picture

-AND-  JPMorgangsta

Thu, 11/03/2011 - 10:12 | 1841100 Dr. Engali
Dr. Engali's picture

In the words of John Cougar Mellencam......"The walls come tumblin down...

Thu, 11/03/2011 - 10:12 | 1841101 semperfi
semperfi's picture

Where's Hanky Panky Paulson when you need him ??!!??  :A

Thu, 11/03/2011 - 10:12 | 1841103 Quinvarius
Quinvarius's picture

They will all keep dying until only the guys with unlimited Fed backstops are left.  Which is pathetic, because those guys are actually the worst off.

Thu, 11/03/2011 - 10:12 | 1841105 lapedochild
lapedochild's picture

Stock halted? Made me think of that time I drove by a large barn on fire. People were trying to get out, but there was only a small door so they couldn't all get out quickly enough. I decided to close the door, locking the people inside, so they could contemplate if they wanted to get out at all. When an hour later I opened the door, not a single person came out! They all had reconsidered!

Thu, 11/03/2011 - 10:13 | 1841107 centerline
centerline's picture

NEW YORK and LONDON, November 1, 2011 - Jefferies confirmed today, in response to questions from investors and analysts, that it currently has no meaningful exposure to the sovereign debt of the nations of Portugal, Italy, Ireland, Greece, and Spain. To the extent Jefferies from time to time takes positions in such debt, they are short term in nature, are recorded in the trading book of Jefferies' regulated UK broker-dealer, are marked to market daily, and fluctuate depending upon customer demand, auction activity, and opportunities in the market place. Jefferies does not have any repo-to-maturity activity or related off-balance-sheet derivative activity. Jefferies Group, Inc. (NYSE: JEF) is the global investment banking firm focused on serving clients for nearly 50 years. The firm is a leader in providing insight, expertise and execution to investors, companies and governments, and provides a full range of investment banking, sales, trading, research and strategy across the spectrum of equities, fixed income and commodities, in the U.S., Europe and Asia. For further information, please contact: Peregrine C. Broadbent Chief Financial Officer Jefferies Group, Inc. (212) 284-2338

Thu, 11/03/2011 - 10:14 | 1841120 centerline
centerline's picture

No "meaningful" exposure...  until it becomes meaningful?  LOL.

Thu, 11/03/2011 - 10:18 | 1841137 jay28elle
jay28elle's picture

Deny, deny, deny.  Then when presented with undisputable proof, keep denying.

Thu, 11/03/2011 - 10:21 | 1841164 Belarusian Bull
Belarusian Bull's picture

Then file for bankruptcy, get your golden parachutes and keep denying.

Thu, 11/03/2011 - 10:33 | 1841236 RemiG2010
RemiG2010's picture


It the same like in Belarus. When Chief Lukashenka files for Belarus bankruptcy, all the gold will be already gone from the country,  stored in a safe place in one of the Switzerland or Cayman Island bank vaults!


Thu, 11/03/2011 - 10:37 | 1841241 i-dog
i-dog's picture

Soooo, they're exposed to France. Wheeew ... no potential problems at all, then.

Thu, 11/03/2011 - 10:13 | 1841110 walküre
walküre's picture

Fat finger? Flash crash? It came back considerably within seconds.

"only" -11% now

Thu, 11/03/2011 - 10:20 | 1841156 Ignorance is bliss
Ignorance is bliss's picture

The Fed is intervening and propping up the stock price until they figure this thing out.

Thu, 11/03/2011 - 10:48 | 1841319 CharlieSDT
CharlieSDT's picture

Check the volume at 10:06.

Thu, 11/03/2011 - 10:13 | 1841111 El Gordo
El Gordo's picture

Well, at least the money in the customer accounts will be safe....haaaaaaaaaaaaa

Thu, 11/03/2011 - 10:14 | 1841116 BurningFuld
BurningFuld's picture

They weren't short GLD were they? Silliness knows no bounds.

Thu, 11/03/2011 - 10:14 | 1841118 stirners_ghost
stirners_ghost's picture

Ring fence made in China?

Thu, 11/03/2011 - 10:14 | 1841119 RaymondKHessel
RaymondKHessel's picture

"you lost another submarine?"

Thu, 11/03/2011 - 10:23 | 1841182 hunglow
hunglow's picture

I shall raise rabbits and travel the states in a RV.

Thu, 11/03/2011 - 10:38 | 1841263 CrimsonAvenger
CrimsonAvenger's picture

Good plan. Nothing more attractive than an RV full of rabbit shit.

Thu, 11/03/2011 - 10:57 | 1841407 cranky-old-geezer
cranky-old-geezer's picture



"No papers ...state to state."

Thu, 11/03/2011 - 10:14 | 1841121 jay28elle
jay28elle's picture

Natural Selection at its finest....  20-something Primary Dealers is apparently too many, eh?

Thu, 11/03/2011 - 10:15 | 1841128 Xtreeeme
Xtreeeme's picture

High frequency updates!!

Thu, 11/03/2011 - 10:16 | 1841131 Temporalist
Temporalist's picture

Silver and Gold both got hammered quickly...there must be other news they are trying to suppress.

Thu, 11/03/2011 - 10:17 | 1841133 Chappy
Chappy's picture

Yeah, i'm sad I missed the shorting oppurtunity this morning.   Tyler, you need to let us know asap when you hear about the next one! you the men!


Thu, 11/03/2011 - 10:19 | 1841152 jay28elle
jay28elle's picture

There will be more ops.  Still lots of PDs to get the treatment...

Thu, 11/03/2011 - 10:18 | 1841139 transaccountin
transaccountin's picture

its back and rising. i got 10k shares tradong in the restroom.

Thu, 11/03/2011 - 10:19 | 1841140 StreetMoney21
StreetMoney21's picture

Yeah man, popcorn season and this is just another kernel in the bag as the microwave evaporates any and all available cash.

Thu, 11/03/2011 - 10:37 | 1841261 Abitdodgie
Abitdodgie's picture

You should stick to your grape coloured kool aid "are you drunk" I hope so

Thu, 11/03/2011 - 10:19 | 1841146 firstdivision
firstdivision's picture

That's what you get, when your run your organization as UBS v1.5

Thu, 11/03/2011 - 10:19 | 1841147 razorthin
razorthin's picture

This whole market looks like it's teetering on a cliff

Thu, 11/03/2011 - 10:21 | 1841161 jay28elle
jay28elle's picture

Yep, seems like just need a small puff to push it over.

Thu, 11/03/2011 - 10:19 | 1841148 JohnG
JohnG's picture

Damn.  Who the hell is safe as a clearing broker these days???

For fuck's sake this is crap is ruining so many small IB's.

Job creation???

Thu, 11/03/2011 - 10:43 | 1841290 DaddyO
DaddyO's picture


Ann Barnhardt lays it out pretty well, read this and get an idea of how bad it really is for the IB's


Thu, 11/03/2011 - 11:26 | 1841615 JohnG
JohnG's picture

It's a bitch all right.  I nearly got run in when Merrill basically went tits up.  It's been like a nightmare for 5 years now.  I simply REFUSE to do business with Goldman (hate those bastards), never did like Bank of Countrywide.....just who's next?

I'm ready to just give it away at this point, I'm 62 and need to retire.  No vacation in well over 15 years.  One of the litttle Edward Jones guys?  I just don't know what wlse to do. 

Constant heartburn kills.

Thu, 11/03/2011 - 10:19 | 1841149 DonBadajoz
DonBadajoz's picture

One by one the cards will fall....

Thu, 11/03/2011 - 10:19 | 1841151 slaughterer
slaughterer's picture

Nice dead cat if you had the nerves to hold through the second halt. 

Thu, 11/03/2011 - 10:21 | 1841162 TooRichtoCare
TooRichtoCare's picture

Rather than telling us of the rumours on a timely basis, and then telling us of the counter-rumour just as quickly....can you just buy into the sell-off for us and sell into the subsequent short-covering rip for us, and merely inform us by text message?  It really would make a lot easier.  I mean, seriously...I could've sold MS at 17.50 at the opening, then bought a ton at 15.95, then sold it again at 16.65.... come on!

Thu, 11/03/2011 - 10:25 | 1841196 Belarusian Bull
Belarusian Bull's picture

That would be great! I always wanted to feel myself like one of those 1% who do nothing and rip all the profits of other's hard work.

Thu, 11/03/2011 - 10:21 | 1841167 jmcadg
jmcadg's picture

Interestingly Bloomberg Radio has not mentioned this. I wonder why.

We can only look at Europe or the US, not both at the same time - impossible.

Thu, 11/03/2011 - 10:21 | 1841169 jmcadg
jmcadg's picture

Oh they now have - my bad

Thu, 11/03/2011 - 10:22 | 1841176 jmcadg
jmcadg's picture

But Jeffries - no meaningful exposure to Europe .... mmmm

Thu, 11/03/2011 - 11:30 | 1841641 JohnG
JohnG's picture



That's bullshit.  Something like $2.5B.  Maybe they bought CDS? 

Oh, wait...  Can you say "voluntary haircut?"

Thu, 11/03/2011 - 10:22 | 1841179 Marge N. Callz
Marge N. Callz's picture

"Our leverage is comparable to our peers"  Was MF considered a peer???  "Our exposure to PIIGS is in the 10's of millions"  Do those 10's of millions include customer funds???

Thu, 11/03/2011 - 11:04 | 1841460 the grateful un...
the grateful unemployed's picture

rumor has it bernanke parked a lot of M2 in EURO MM acccounts to shore them up, when you say OUR, you really mean it

Thu, 11/03/2011 - 10:28 | 1841214 slaughterer
slaughterer's picture

Egan-Jones has to hit GS to make my day. 

Thu, 11/03/2011 - 10:29 | 1841221 Cone of Uncertainty
Cone of Uncertainty's picture

I'm sure this was just a Waddel & Reed fat finger fuck up.

Probably just a transpo error on the trade ticket.

Thu, 11/03/2011 - 10:31 | 1841231 Eireann go Brach
Eireann go Brach's picture

Tyler, can you give us a list of who will be next out of these dealers?

Thu, 11/03/2011 - 10:33 | 1841239 Seasmoke
Seasmoke's picture

its funny how all the criminals, in whatever industry, always seems to do the same scam !!!

Thu, 11/03/2011 - 10:34 | 1841250 DeadFred
DeadFred's picture

Somewhat OT but keep watch for trolls who suddenly drop off the comments board. The MF Global trolls just lost their paychecks, followed soon the Jefferies trolls, and on until we are left with only the Goldman, JPM and Gov psy-ops trolls. It will be nice to sort them out and put them in their categories. A well categorized conspiracy theory is a happy conspiracy theory.

Thu, 11/03/2011 - 10:39 | 1841269 Miles Kendig
Miles Kendig's picture

Net doesn't mean shit.  Even PIMCO knows it's GROSS baby

Thu, 11/03/2011 - 10:43 | 1841291 spacecadet
spacecadet's picture

Bernanke can go negative interest rates. That would be interesting.

Thu, 11/03/2011 - 10:45 | 1841296 bill1102inf
bill1102inf's picture

nom nom nom. Trade!!

Thu, 11/03/2011 - 11:08 | 1841474 cranky-old-geezer
cranky-old-geezer's picture



Deja vu.

In '08 it was "No meaningful exposure to subprime."

Same scenario now.  EU is the new subprime.

It was 6 months between Bear Stearns and Lehman.

Two days between MF Global and Jeffries.

... and no TARP / TALF / LSAP / QE this time around?

This could get ugly.


Thu, 11/03/2011 - 11:06 | 1841476 yogibear
yogibear's picture

Where there is one Wall Street roach there are many more. The last several months the Wall Street roaches had inserted a positive feeling into a degrading debt situation in Euroland. Now all a sudden the Market Makers seem surprised?  Enjoyed the Euro dog and pony show while it lasted. Guess there were too many lies to keep track of. Now it's falling apart.

Thu, 11/03/2011 - 11:15 | 1841536 ParaZite
ParaZite's picture

The market has gone full retard. 

Greed is fueling it, foolishness and stupidity are throwing gas on the fire. 

This won't end well... well, unless you happen to be on the right side of the collapse. 

Thu, 11/03/2011 - 11:44 | 1841719 stoverny
stoverny's picture

everyone is hedged to everyone else who is also hedged to everyone else, all of whom cannot pay their hedges and therefore cannot collect their hedges.

I'd say everyone may be hedging on the truth a little bit.

Thu, 11/03/2011 - 11:47 | 1841740 GrinandBearit
GrinandBearit's picture

MF and now Jeffries, but it doesn't seem to matter because the market is up like nothing is wrong.  The HFT algobots are tenacious to say the least.

Thu, 11/03/2011 - 11:48 | 1841749 Hephasteus
Hephasteus's picture

I guess Uncle Gorilla will have to economize a bit on next seasons planet of the apes production.

Thu, 11/03/2011 - 12:03 | 1841827 riley martini
riley martini's picture

 Jefferies was underwriter for he MF Global bond sale just before their collaspe . The lawsuit should be an the way. Bond purchasers and shareholders.

Thu, 11/03/2011 - 18:38 | 1843438 Manny
Manny's picture

Not sure why everyone is so worried. Just look at the market!

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