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Jefferies Is Back In Self-Preservation Mode, Releases Yet Another Defensive Press Release As Stock Tumbles

Tyler Durden's picture





 

Just out from Jefferies which reports that it has lowered its Gross exposure to PIIGS by another 50% (down 75% in total), which we wonder: why, if Gross is not Net? Just ask Morgan Stanley.

  • JEFFERIES RESPONDS TO `RUMORS, HALF-TRUTHS AND OUTRIGHT LIES'
  • JEFFERIES CITES `INTENTIONAL MISREADING OF OUR PUBLIC FILINGS'
  • JEFFERIES REPURCHASED $50M OF 2012 BONDS IN `PAST FEW WEEKS'

And, like Europe, it is all evil speculators fault:

Last week, a representative of a hedge fund, who we understand has been spreading false rumors about Jefferies, sent us a letter with a series of questions that for the most part show what we must presume is an intentional misreading of our public filings to try to support these rumors. All these folks seem to be trying to take advantage of the MF Global bankruptcy and the volatile market environment with a view to harming Jefferies and all of us, presumably for personal gain. With the facts and truth on our side, we have responded to all this directly and completely. Fortunately, those who  take the time to understand and truly analyze the facts are reaching the right conclusion. While it may be necessary for us to continue to respond to these ill-conceived attacks, we fortunately can do so on a firm foundation and with confidence in our funding and business model.

It also appears that rumors of PB client exodus were not completely false:

The only recent development in our prime brokerage business has been our moving the custody of certain client assets to J.P. Morgan Clearing Corporation pursuant to a longstanding agreement we have with them whereby we continue to provide all other services to our clients and custody is at JP Morgan on a fully disclosed basis. This is a far cry from false rumors of an exodus of clients moving to other firms or anything else of this nature.

One thing is certain: this is not the last promise from Jefferies that all is well.

Full letter:

 

 


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Mon, 11/21/2011 - 11:12 | Link to Comment Cdad
Cdad's picture

Where is Larry Fink to say, "Make them buy JEF!"

Mon, 11/21/2011 - 11:50 | Link to Comment MarketTruth
Mon, 11/21/2011 - 11:52 | Link to Comment Fukushima Sam
Fukushima Sam's picture

I'm sure everything is just fine over at Jeffries.

Mon, 11/21/2011 - 12:09 | Link to Comment WonderDawg
WonderDawg's picture

Can you imagine being an MF client today, with no access to your money as the market implodes. That money is gone and will never be seen again.

Mon, 11/21/2011 - 21:49 | Link to Comment Buck Johnson
Buck Johnson's picture

Jeffries is about to go under and they are doing everything to obfuscate the issue and say everything is okay.

Mon, 11/21/2011 - 11:12 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

We've heard this shit before. Handler sold $25mm of stock less than 60 days ago. They are fucked without the Fed spigot.

Mon, 11/21/2011 - 11:27 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Fed spigot doesn't guarantee anything anymore.

Imagine yourself in an airtight elevator with an extremely leaky glass pitcher in one hand and a hose with infinite supply of lemonade in the other. You pour and pour and pour, the pitcher can't get full but the elevator can.

Cause of death. Drowning by lemonade.

Mon, 11/21/2011 - 11:13 | Link to Comment writingsonthewall
writingsonthewall's picture

I said this earlier this morning.

WE WANT A STATEMENT FROM JEFFERIES.

 

if not - then we're going to occupy it - and not with our money.

These morons are going down - and there's nothing to stop it.

 

Mon, 11/21/2011 - 11:13 | Link to Comment jcaz
jcaz's picture

Gee, Dick- you have plenty of personal cash on hand from your liquidation of Jeffries stock to buy some shares yourself if it's so cheap-  why not put your money where your mouth is?

Be a REAL CEO.....

Mon, 11/21/2011 - 11:58 | Link to Comment Sig Sauer
Sig Sauer's picture

not to defend him, but as an insider he is subject to the short swing profit rules.....having sold at higher prices, if he buys now he must disgorge the profits.

Mon, 11/21/2011 - 11:13 | Link to Comment lolmao500
lolmao500's picture

Jefferies, face it, you are done.

Mon, 11/21/2011 - 11:14 | Link to Comment rambler6421
rambler6421's picture

I blame that Conspiracy theory blog called Zerohedge.  What a bunch of right wing lunatics.

 

libertarian86.blogspot.com

Mon, 11/21/2011 - 11:16 | Link to Comment JenkinsLane
JenkinsLane's picture

Infamy, infamy, they all have it in for me.

Mon, 11/21/2011 - 11:16 | Link to Comment slaughterer
slaughterer's picture

It's dead, Jim.  Put it on pink.

Mon, 11/21/2011 - 11:17 | Link to Comment lolmao500
lolmao500's picture

Latest news from MF Global... they stole 3 BILLION...

http://ca.news.yahoo.com/insight-anger-mounts-mf-global-clients-see-3bln...

The remainder, more than $3 billion, ostensibly remains on hand to cover a shortfall originally estimated by MF Global to regulators at just $600 million.

Mon, 11/21/2011 - 11:18 | Link to Comment RobotTrader
RobotTrader's picture

Tyler's famous "Risk Basket" trading now flashing a buy signal.

http://finance.yahoo.com/q/bc?s=SPY&t=5d&l=on&z=l&q=l&c=fxe

Huge spread between SPY and FXE right now.

Mon, 11/21/2011 - 11:33 | Link to Comment CvlDobd
CvlDobd's picture

A colleague told me that Cramer last week said the keys to the market are the currencies.

So currencies don't matter any more.

Mon, 11/21/2011 - 11:37 | Link to Comment Bold Eagle
Bold Eagle's picture

Not so fast. After the greatest October on record, SPY has to work hard to get back to reality.

Mon, 11/21/2011 - 11:38 | Link to Comment Tyler Durden
Tyler Durden's picture

That has nothing to do with any "risk basket". CONTEXT has many more components than just FXE. Plus next time you should probably index them on a relative basis.

Mon, 11/21/2011 - 11:38 | Link to Comment Tsunami Wave
Tsunami Wave's picture

Is it like 2009 yet Robo???

Mon, 11/21/2011 - 11:18 | Link to Comment Big Bopper Kenosha
Big Bopper Kenosha's picture

Egan did make that silly statement about market cap and leverage on Fox Business.  Really makes you question his understanding of basic finance. 

Mon, 11/21/2011 - 11:19 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

Upvote if you too simply scrolled through that press release, wihtout reading a word, knowing full well that the language contained therein is complete and utter, top shelf, gold seal, numero uno, unmittigated, self serving, epic bullshit of the highest order.

Mon, 11/21/2011 - 11:22 | Link to Comment ItsDanger
ItsDanger's picture

A higher market cap enables cheap financing options, higher leverage reduces that.

Mon, 11/21/2011 - 11:31 | Link to Comment Big Bopper Kenosha
Big Bopper Kenosha's picture

Wrong - difference between market and book. The 12.9 number Egan used was using book numbers.  Adjusted leverage accounting for cash is a better barometer and that sat around 12.  Egan screwed up on national television.  It made him look silly.

Mon, 11/21/2011 - 11:22 | Link to Comment Temporalist
Temporalist's picture

This is certainly an intentional misreading of their public filings instead of their public filings being intentionally misleading.  Most Global Investment banks tell the truth first as policy.  MF Global is not typical and will surely find their money in the glove box of Jamie Dimon's Maybach.

Mon, 11/21/2011 - 11:22 | Link to Comment DogSlime
DogSlime's picture

They need to stop handling their Dick.

Mon, 11/21/2011 - 11:23 | Link to Comment tempinsanity
tempinsanity's picture

Lets see just a few points: under disgorgement rules Handler cant buy stock unless he wants to throw $6mm of cash down the drain (even robot traders mom isnt that dumb), their prime brokerage businesss is tiny who cares if it all goes away, and finally all of their borrowing are secured so who cares.

Mon, 11/21/2011 - 11:29 | Link to Comment earnulf
earnulf's picture

We need to archieve that release, for posterity when the whole thing comes unglued and we can requote their platitudes about how they raised funds well in excess of their needs over the past several years.   Of course, that would be an intentional misreading of their earlier release saying "Alls well!"  (For some reason, I keep seeing Yellowbeard when I hear 'Alls Well!")

Mon, 11/21/2011 - 11:31 | Link to Comment Catullus
Catullus's picture

"we'll crush the shorts!"

Mon, 11/21/2011 - 11:35 | Link to Comment lizzy36
lizzy36's picture

What crap.

After MG Global a fiduciary would not be doing his/her job if they didn't move money out of a 2nd tier brokerage account. 

This isn't just about Jefferies it is also about the systemic risk contagian unleashed (once again) by the shit show that MF Global currently is.

Mon, 11/21/2011 - 11:36 | Link to Comment gatorengineer
gatorengineer's picture

Stop being a Dick, Dick, and admit defeat......

Mon, 11/21/2011 - 11:40 | Link to Comment Seasmoke
Seasmoke's picture

damn you Jon Corzine

Mon, 11/21/2011 - 11:58 | Link to Comment curbyourrisk
curbyourrisk's picture

"Fortunately, those who  take the time to understand and truly analyze the facts are reaching the right conclusion."

And those that do understand (as you say) are getting ass raped in the markets today...would you like to apologize to them for getting it???

 

"While it may be necessary for us to continue to respond to these ill-conceived attacks, we fortunately can do so on a firm foundation and with confidence in our funding and business model."

Their Dick Fuld moment......  We are fully capitalized...It't the fucking shorts...  they are all wrong and they are gonna burn...

 

Mon, 11/21/2011 - 12:14 | Link to Comment writingsonthewall
writingsonthewall's picture

"Fortunately, those who  take the time to understand and truly analyze the facts are reaching the right conclusion"

 

Ok, let me have a stab.

 

You hold a lot of European debt - yes?

Europe is not going to pay it back - yes?

Not paying it back was never in your risk calculation when you took the positions - yes?

 

Conclusion - you're fucked. Get out of my orrifice and don't make a noise on the way.

 

Who are these 'right conclusion' people anyway? - Goldman Sachs? Other banks? - Sorry, their reputation as analysts is rather shit since they said "this TARP thing will fix the problem"...

Mon, 11/21/2011 - 12:27 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

at least the heat is off the fringe bloggers for a short time, BiCheZ!

Mon, 11/21/2011 - 12:37 | Link to Comment Dingleberry
Dingleberry's picture

Just in time for the holidays......HOORAY!!!!! Another fucking financial rapist going down!!!!!!!!

Mon, 11/21/2011 - 13:09 | Link to Comment Joebloinvestor
Joebloinvestor's picture

Why don't they follow the EU lead and ban short selling?

 

That will keep the stock from tanking for sure!

Mon, 11/21/2011 - 14:10 | Link to Comment Unholy Dalliance
Unholy Dalliance's picture

 

 

'Last week, a representative of a hedge fund, who we understand has been spreading false rumors about Jefferies, sent us a letter with a series of questions that for the most part show what we must presume is an intentional misreading of our public filings to try to support these rumors.'

 

Hamlet: Madam, how like you this play?

 

Queen: The lady doth protest too much, methinks.

 

Wm. Shakespeare (aka Christopher Marlowe)

 

 

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