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Jefferies Releases Yet Another Set Of Numbers On Its European Exposure That Differ From 24 Hours Ago
Jefferies is out with its third consecutive promise it has done nothing wrong, issuing a press release in which it says "Jefferies has no meaningful credit risk in respect of the sovereign debt of these nations, and an insignificant risk related to interest rate movements" and hopes to slay the dragon of doubt once and for all. Furthermore as CEO Dick Handler adds, "Later today, after the markets are closed in Europe and we have completed our inventory control accounting, we will post on our web-site our day-end, CUSIP-level holdings in the securities of these countries. We care for our clients, shareholders, bondholders and employees and want to allay any concern that may have arisen. As was the case yesterday, the facts about our sovereign debt exposure and other matters are straightforward and easily understood. We encourage all market participants and interested parties to review our public filings that contain extensive disclosure of the nature, extent and financing of our assets. Our firm stands on a solid foundation of over $8.5 billion of long-term capital and we look forward to continued success." We congratulate this espousal of transparency and clairty. We are also 100% certain that Jefferies will be so kind to disclose not only the Cusips but the maturities and tenors of all synthetic products. It will of course also publicly highlight the dates of all transactions: the last thing the public will want to think is that Jefferies took advantage of the grace period of the past 2 days to neutralize its cash book sufficiently. Because one can't help but be curious what the reason for the material difference between the numbers posted as of yesterday and those posted today is, or rather, when the offsetting buys and sells took place.
From today's press release:
| Positions stated in USD MM’s | ||||||||||||||||
| Long | Short | Net Cash | Futures | Net Total | ||||||||||||
| Italy | 2,086 | (2,011) | 75 | (100) | (25) | |||||||||||
| Spain | 191 | (209) | (18) | - | (18) | |||||||||||
| Ireland | 110 | (80) | 30 | - | 30 | |||||||||||
| Portugal | 20 | (16) | 4 | - | 4 | |||||||||||
| Greece | - | - | - | - | - | |||||||||||
| Total | 2,407 | (2,316) | 91 | (100) | (9) | |||||||||||
And from yesterday:
It should be noted that, as of today’s opening of business, Jefferies’
net exposure to the sovereign debt of the nations of Portugal, Italy,
Ireland, Greece, and Spain consisted of the following (rounded to the
nearest million):
- Portugal $5 million
- Ireland $28 million
- Italy$104 million
- Greece $3 million
- Spain<$178 million>
for "combined net short exposure of approximately $38 million"
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Friday Night in the South of France probably best not to do a TV spot whilst having enjoyed a few glasses of wine, or maybe they always giggle and talk funny when doing a live report:
http://oi42.tinypic.com/34yofic.jpg
Whaaaaaaaaaaaat a coincidence!
Hey, this is great! Imagine the odds of this happening.
Do you know the park in NYC that the Wall Street protesters are occupying?
It's Zuccotti Park.
Did you know this park is not owned by the city of New York?
It is owned by Brookfield Properties.
Who was just hired by Brookfield Properties as an attorney?
Vice President Joe Biden's son.
Who sits on the board of Brookfield Properties?
Mayor Bloomberg's live in girlfriend.
Now, guess what company just received some of the last of the Obama Stimulus $$$$$$$.
Thaaaaaaaaaaaat's right, Brookfield Properties.
Isn't life great in America!
Now, guess what, on a completely unrelated note, Wisconsin is shaping up to be the swing state in the 2012 presidential elections. Not Florida. Not Ohio. But Wisconsin.
Now, guess who owns the company that will be tabulating the electronic votes in Wisconsin.
Thaaaaaaaaaaaat's right, the biggest contributor to Obama, the puppeteer George Soros. Whaaaaaaaaaaaat a coincidence!
Now remember what Stalin said. "He who votes does not have the power. He who counts the votes has the power".
I'm always careful when I'm online. Like I always say, the net can be gross!
Dick Handler.
There goes that keyboard...
Jefferies NOT too big to fail. Next primary dealer to be cross out.
Bank of Nova Scotia, New York Agency
BMO Capital Markets Corp.
BNP Paribas Securities Corp. (FRENCH SHIT)
Barclays Capital Inc. (British SHIT)
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc. (SHIT)
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc. (German SHIT)
Goldman, Sachs & Co. (SMART SHIT)
HSBC Securities (USA) Inc. (Hong Kong SHIT)
Jefferies & Company, Inc. (NEXT SHIT)
J.P. Morgan Securities LLC (ROCKEFELLER SHIT)
Merrill Lynch, Pierce, Fenner & Smith Incorporated (BANK OF AMERICAN SHIT)
Mizuho Securities USA Inc.
Morgan Stanley & Co. LLC
Nomura Securities International, Inc. (LOST DECADE SHIT)
RBC Capital Markets, LLC
RBS Securities Inc.
SG Americas Securities, LLC
UBS Securities LLC. (Swiss BS SHIT)
MF Global (New Jersey SHIT)
Bear Sterans (JP MORGAN SHIT now)
Lehman Bros (Repo 105 SHIT)
Countrywide (BANK OF AMERICA SHIT now)
A lot of these are Inter-Alpha SHIT.
I know. I was wondering how he even made it out of high school alive with that name.
It happens. We have a bridge here in GA named after Dick Hunter.
Bwawney Fwank was in GA?
gross will soon be net - they're shooting themselves in the foot with this
Awesome stuff. I am too poor to watch CNBC anymore but I get bloomberg over the internets, and once perday they wheel out a george will wannabe dinosaur who flirts with the girls and has recently been saying that the Cain sexual harrassment stuff is more powerful than the buffet rule for romney.
Thank you zero hedge.
Something isn't right about Jeffries, the lady or gentleman does protest too much. Three times in a week to squelch rumors that it's heavily invested in European debt.
Let's hope that these moves won't have a significant negative impact on the local economy. As a small entrepreneur I am struggling to survive and I am thankful that I can rely on Bradley S Cohen's advice to keep my business back on track.
Death throws.
Not so fast, not so fast...
Understanding Wall Street's (add in commerical side of the banking ledger, too, make No Mistake About That... and this is from Personal Experience) Highly Touted Risk Managemant Capabilities necessitates a thorough underatanding of Wall Street's accounting, records keeping and analytical systems.
If you really don't fucking know what you own, you can say that it's under control. Of what and by whom is all together a different discussion, but it's all under control.
Understand? Like Netting.
No Martha, not hair netting. Go back to your Betas and Gammas, darling.
This is honestly business as normal.
Lemme gve you an idea.
Just as the only time the recovering alcoholic doesn't want to talk about himself is during his 4th and 5th steps, the only time a brokerage firm understands what the fuck it has on it's books is when it comes to dressing them up at quarter's and year's ends.
Period, EOC.
Jefferies goes KABOOM over the weekend?
yesterday I would have said yes, but I'm not so sure anymore. if you're guilty you usually just dismiss things out of hand and call the accusations "ridiculous" ... you don't show numbers.
we'll see soon enough I guess.
They're feeling some pinch, likely from clients liquidating accounts, this is not a press release intended for the public...
BAC just keeps drifting lower
Time to smoke a Jefferies?
http://www.youtube.com/watch?v=EPpxbEl-e8o
music too
Yesterday CNN Reported tht hedge fund clients of JEF were fleeing.
http://money.cnn.com/2011/11/03/markets/jefferies_hedgefunds/
Few more Lehmans before QE3.... just in time for reelection.
all part of the plan folks.
BTW, isn't Jefferies walmart of dealers?
Well they certainly can't let it die while the market's running.
Life's a glitch and then you die.
JEF would like to express its appreciation to the obama business channel for "restoring investor confidence"
as the guy said the disclosure is absolutely extraordinary
Jeffries just sitting tite, waiting till Monday when Jamie Dimon will discover JPM is holding all the money to make Jeffries whole again.
Nothing to see here, +1% on DOW no doubt over the next 1/12 hours.
The CEO has definitely been handling too much dicks the past week.
Yup, and they need the weekend to get the database hamsters at the FED to wheel some binary funny money over to Jamie at 0.01% on Ben's "special ink" ledger (i.e. - invisible).
Jeffries is setting a high standard for transparency here.
LET'S SEE EVERYONE ELSE DO THE SAME.
I wouldn't hold my breath for that one ...
It's not the current perception of the facts that ever matter; it what you are holding when the FBI show up that makes it real. FBI timeline only works one way and dissemblage is their encouragement. Capitalism works like a MF (LAMF), just ride the tiger, don't become one.
http://freespeechforpeople.org
Just a little more schadenFRAUDe never hurt anybody, did it? Oh, except the taxpayers.
link to follow
Fuck. Just went all in FAZ for the weekend.
You're supposed to short FAZ, genius.
there might be an investigation starting .... in a week or so
It should be noted that, as of today’s opening of business, Jefferies’ net exposure to the sovereign debt of the nations of Portugal, Italy, Ireland, Greece, and Spain consisted of the following (rounded to the nearest million):
In response to inquiries, Jefferies is disclosing its position as of a few minutes ago in the sovereign risk of the nations of Portugal, Italy, Ireland,
Sorry but they appear pretty clear on the timeframe to me.
if dick handler's lips are moving he's lying....call it mf global after glow...the kind you get when you are fucked in the ass without the benefit of lubricants...
LOL...leave it up to ZH to expose all these high end Wall Street bakeries for what they really are...manure factories.
I'm getting that "Bear Stearns, MF, Leahman, Enron" tingly feeling all over my body.
there is something going on
Massive fraud and theft that will soon be covered up & forgotten about due to a war with Iran?
Sorta like the $2.3T announced missing from the Pentagram on 9/10/01?
http://www.youtube.com/watch?v=xU4GdHLUHwU
"Our firm stands on a solid foundation of over $8.5 billion of long-term capital and we look forward to continued success."
Wow I heard the same thing at Wachovia. The Friday before they went under. We came in Monday morning only to hear that Citi was buying us for a buck a share.
That'll make my OTM puts ITM puts!! :)
But but but...Meredith Whitney says nothing to see here!
http://www.cnbc.com/id/45153037
http://www.xtranormal.com/watch/12640606/banking-system-by-todd-horlbeck is the link!
Oh, well that settles it, then...
Hey Dick...how many shares did you sell?
CEO "Dick Handler".....hahahahahahahahah he deserves to be ridiculed!
dick handler wouldn't jerk us around...er wait...
Boxing with the stars:
Dick Handler
vs
Dick Trickle
Another sensational (wrong) article by ZH blown out of the water!!! Jeez you guys are making Dick Fuld look good!
By short, they mean useless CDS?
Oops. Jamie says that the MF funds at the Morgue are not the missing funds.
http://www.youtube.com/watch?v=vzcWPKAv2Ow
Now senile old uncle Warren discovered he has some of Jeffries money in his account at Wells Fargo. Couldn't remember where he got it. Corzine is on hold
I just realized the dudes name is Dick handler?? Would have love to been in his high school
Anyone else think of Leslie Nielsen standing in front of the exploding fireworks factory in The Naked Gun telling the crowd, "There's nothing to see here..."
Yep, every day for the last 3 years.
Company: MF Global Holdings Ltd.
Ticker: MF
Security:
Common Stock : 55277J108
Venue: USDC - New York (Southern)
Class Period: May 20, 2011, through Oct 28, 2011
Filing Date: Nov 03, 2011
Lead Plaintiff Deadline: Jan 03, 2012
Law Firm issuing press release: Block & Leviton
Allegations: The complaint alleges that MF Global Holdings Ltd. ("MF Global" or the "Company") through its most senior officers and directors made certain materially false and misleading statements regarding the Company's internal financial controls and liquidity levels. The positive statements about MF Global were allegedly knowingly false and misleading when made because: (1) the Company was suffering from serious liquidity pressures based on its exposure to the European debt crisis; (2) the Company's internal controls were highly deficient and were unable to clearly segregate clients' funds; and (3) MF Global's senior management failed to disclose that the Company's true risk profile would inevitably lead to a credit rating downgrade.
Was it so much fun shorting itself?
It doesn't matter what the truth is regarding their exposure, when people are afraid and someone shouts "fire" the stampede doesn't need any further confirmation.
This was one of the points in the book, House of Cards. Bear Stearns actual liquidity status was irrelevant, the rumors created the rush for the door, thereby confirming the rumor.
He was jacking off when he should've been conducting prudent risk management..
Our Dick who art at Jefferies,
Handler be thy name.
Our hour has come, let us not be done,
As PIGS bonds begin to squeeze us.
And give us this day our daily press release,
As we obfuscate all wrongdoing.
And bring us not under investigation,
But deliver us from our scrutinizers.
For hidden are the dates, the ledgerdemain, and the CUSIP's,
Forever and ever.
Amen.
(It just works in so many ways....)
I think you have a bright future here at AAAAAAAAAAAAAAAAAA Auto parts;)
i'm liking that "ledgerdemain".
You know... Exposure does change day to day. 3-5% changes day to day wouldn't be a big deal for most entities this size and we aren't even close to seeing that here. Where is the problem?
Slow news day for Tyler I think. Jefferies has been very clear on when those numbers were taken. The last release said that's the exposure in the last few minutes.
Same bullshit news titles I expect from FOX trying to stoke fear in the sheeple.
in at 11.54
Thanks for the money Tyler.
everybody relax they are just a tad net long on european finanicals with hedges..........everybody relax....... nothing to see here. move along......
Wait a second... I thought the exposure is due to market making inventory. Isn't it, then, quite natural that the figures change from day to day???
Corzine - isn't that the dispersent they used in the Gulf oil spill to make it not look so bad?
"The lady doth protest too much, methinks."-Shakespeare
24 hours with copy/paste/ edit and miracles happen!
Somebody spill the beans on what the rumor is for tonight or this weekend??
China is going to save them all again. The full plan, which has been approved by all involved European parties, is explained here:
http://www.youtube.com/watch?v=oHg5SJYRHA0
Heard this line of BS before...
National City: We have *tons* of Tier-1 capital. 5 minutes later their CEO was seen skydiving with a golden parachute. F*** these liars. If they say everything is OK, then you can GUARANTEE it's *NOT*.
MF -- steak dinner 1 day -- out of business the next.
How these guys avoid going to jail for FRAUD is just...beyond me.
Then there is that infamous 'We admit no wrongdoing + slap on the wrist' crap.
On a side note, aren't we overdue for another Chinese company with 80% profit margins, but no real customers to go to $0
This story need some good theme music.
http://www.youtube.com/watch?v=Tmbiji_uP6c
But do they care enough to comingle customer funds? That's all that should matter.
Just opened (5) 5$ NOV puts on JEF. Money waste or windfall!
I bought some at 10, sounds like a fun roll of the dice.
www.singledudetravel.com
I have a silly question, if one is NET SHORT, why not just be short.
Why have all those long positions offset with short postions. Depending on leverage, isn't one just merely losing money on the margin necessary to offset the various positions?
Good question, Lizzy. I do this with options, so I'll give you a quick take.
I might be long 10 puts on Groupon, and own 8 calls, so I'm net short 2. Why?
My net bias is downside, but the market is so volatile the damn thing could go either way. This actually reduces risk if it's done right. Most complex strategies are there to capture interest rate differentials (probably what Jeffries is doing) or take advantage of mispriced volatility. Hope that helps.
Lizz
Those exposures you see listed are from the firm's daily market making activities. JEF might not be trying to be long or short anything at any given time, but as any MMs duty, they have to quote a bid.offer for every security they trade. Inevitably, at end of day, a dealer ends up with excess inventory on his books. The futures are there to hedge part of this exposure, as are CDS indices (MAIN, XOver, etc) but they are never a 1:1 perfect hedge.
Hence all market makers, despite their primary mandate being to not have any directional exposure, always end up with some sort of (minimal, if hedged correctly) prop exposure.
They keep throwing bad news at the market and it simply won't crack.
Come on, even you can do better than that, retard.
We are in the worst economy in decades
Unemployment at 9%+ for 3 years running
European banks blowing up everywhere
Brokerage houses like MF imploding
Everyone is scared stiff
Yet consumer names like SBUX, NUS, PNRA, CMG, ULTA, etc. are at world record highs.
WTF?????
I see some new names have replaced your stinkers.
WTF? Well, let's see...
1) Measured against a real asset like gold, rather than dollars which have been diluted, those highs don't look nearly so high.
2) Those who are still employed, continue to fund their 401K's, and that money has to go somewhere.
3) Algos are mainly doing the buying and selling, so they provide a floor to the market; undoubtedly they are set to place buy orders when prices drop to a certain level.
Probably there are more explanations, those are just the first ones off the top of my head.
http://business.financialpost.com/2011/11/04/financial-transaction-fee-closer-to-reality-sarkozy/
People are starting to wake up and realize that the Central Banks are going to implode the financial system with an ultimate burst of the credit bubble. You owe to it yourself to get educated on how to survive the upcoming economic collapse:
http://theelevationgroup.net/presentation/register.php?a_aid=a6affed9&a_bid=290b868b
So this is a fucking hedge? By Dick Handler, no less. Perfect for a friday, Tyler, congrats.
1. Pair trading is NOT A HEDGE.
2. Some half assed correlation your quant came up with is NOT A HEDGE.
3. Buying all your insurance on Spain and ignoring the rest of your book is NOT A HEDGE.
I'm not even sure this shit can be hedged anymore. Any bond Dudes have a take on that?
As was the case yesterday, the facts about our sovereign debt exposure and other matters are straightforward and easily understood...
Straightforward. Enron was fond of that word too.
'Our firm stands on a solid foundation of over $8.5 billion.'
Wonder what percentage is it out of the PIGS debt bet, that they took. 5%? 1%? 0.1%?
a hahaha.
And what % out of 8.5% are 'accidently' misplaced client's money? 5%, 10%, 25% ?
ZH is the worst site in the world to come to if you trade for a living. You guys are irresponsible with your reports. JEF came out and are disclosing everything!! Stock buried shorts today. I think this system is screwed but you guys yell "FIRE" everyday! I don't know when a story of yours has any teeth in it anymore.
I think ZH points out the conditions for a wildfire but ZH doesn't light them. However, ZH "is the worst site in the world to come to if you trade for a living" and are inclined to whine about your own mistakes.
Finally, net exposures don't mean much unless you know how you they are created; e.g. you might want to brush up on repo advance rates and terms. I'm just saying...
CEO Dick Handler? Who is the CFO, Rosie Palms?
Like a dying fish in the water.. sharks are attracted to the noise and smell blood. cue Jaws music..
"Every banker knows that if he has to prove that he is worthy of credit, however good may be his arguments, in fact his credit is gone ..."
Walter Bagehot 'Lombard Street' (1873)
bullshit. He knows he needs to do everything he can to prevent a bear raid. People get nervous and scared shitless cause your all high on coke acting purely on impulse.
Investment of the lifetime . The moment i heard about it i knew it was free money. Too bad i couldn't capitalize on it. Most are slimeballs but some are honest. They so not leverage or make directional bets. But please keep the fear mongering going.
Ponzi structures like "investment bank" Jefferies are inherently unstable, erected as they are on the shifting sands of confidence. As an offshoot of the Federal Reserve, JEF has all of its weaknesses but lacks the one thing that will insulate it when - as now - push comes to shove: a printing press. You've got to be certain that JEF's fate is being decided behind the scenes this weekend by its alpha primary dealer competitors. One would have thought that 20 is a crowd.
All that's happening is predictable, as there are 7 stages that every major economy goes through. Those who know how it works profit & massive wealth is transferred to them. Several months ago I learned this information from a millionaire whose site I found & am sharing it with everyone I know.
His free video
"How To Create Incredible Wealth in Today's Economic Crisis"
is at:
http://theelevationgroup.net/presentation/register.php?a_aid=160667&a_bi...
Hope this info helps everyone as much as it has me.
Dr. Nancy