Banks

jefferiesAs you may have heard, this week has been a tough one for Team Jefferies. Not only for Global Healthcare Head Sage Kelly– who took a voluntary leave of absence yesterday– but for other senior members of the bank, who’ve either been named in the complaint filed by Kelly’s soon-to-be ex-wife or simply felt embarrassment by association. It’s unclear what exactly was going on over at HQ today, but it seems that some sort of tipping point occurred and a scene similar to the following occurred:

Senior Jefferies Management is reading the latest allegation re: Kelly

SJM: “Oh come on.”
SJM: “Oh this is ridiculous.”
SJM: “You’ve got to be kidding me. No, this is…oh HELL NO [unbuckles belt, screams into intercom:] “Get me a cup…I said get me a fucking cup!”

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ubs1 3.13.35 PMBased on a judge’s ruling today. Read more »

Sage KellyAs you may have heard, Jefferies Global Healthcare Head Sage Kelly is currently taking a time out from investment banking, following allegations made by his estranged wife Christina that include but are not limited to Sage: holding a “Mushrooms Day” for colleagues in the Hamptons; developing his relationship with a client by having sex with the guy’s girlfriend while said client had sex with Kelly’s wife; and at times being so drug-addled that he could not differentiate between a toilet and his bed, the floor, and a wall. (For his part, Sage has said that while he admits to using “recreational drugs on occasion at certain social events in the past,” he has “never defecated or urinated in bed, on the floor or a wall.” The aforementioned client has denied taking part in the foursome.)

Now, a person familiar with Kelly’s healthcare group is adding to the “Things Sage (allegedly!) Made Me Do” cannon. Read more »

Don't do this to him, guys.Bank of American Chairman and CEO Brian Moynihan does have a tendency to look put-upon, as if a favorite pet has just died. Or perhaps like he’s just eaten a piece of sushi that tastes off. Or like he’s just found out that owning Countrywide is going to cost him another X billion dollars. Given that, some pension funds with a few BofA shares in the kitty think the bank should give him a break, rather than that extra title. Read more »

  • 30 Oct 2014 at 4:30 PM
  • Banks

Deutsche Bank, Suspended Traders Are Friends Again

Alright, you can come down now.When a German judge tells you in clipped tones that you do not want her weighing in on the matter of (a) your suspension for (allegedly!) trying to manipulate interest rates or (b) your suspending said alleged manipulators without actually following any of the (probably thousands of) rules in Germany regarding such, you listen. Deutsche Bank and its suspended traders have listened. Read more »

charliegasparinojefferies
[via @cgasparino]

Earlier: Jefferies Exec Sage Kelly Taking A Timeout From Investment Banking

Joseph GalbraithOver at Dealbook today, you will find the story of Joseph B. Galbraith, whose Galbraith Capital Investment Management was mistakenly wired $1.5 million from Credit Suisse back in January. Currently, Galbraith is said to be living in Monacco and, presumably, the money is with him, because Credit Suisse, despite realizing its error many months back and asking nicely for Galbraith to return the money, has not seen a dime. But not for lack of trying! In fact, the bank asked Galbraith and his associates (one of whom appears to be his nephew) to give the money back many, many times. Unfortunately, the Swiss apparently had no idea who they were dealing with, i.e. a master of the old “Your check’s in the mail/I just got in a cab/I’m around the corner/I’m just looking for a parking spot.” Read more »

Sage KellySayeth executive committee chairman Brian Friedman and CEO Richard Handler, in a memo to employees:

For the past few extremely painful days, the media has been reporting on one person’s very personal and inflammatory allegations, some of which relates to several of our employee-partners and two of our clients. We cannot express how deeply we regret the agony and distraction that this has caused all of us, not to mention our clients, each of whom has categorically denied the allegations. If you know us personally, and most of you do, you know how seriously we are taking this matter and how focused we are on always doing the right thing. Our mindset is always to be straightforward and transparent with all information, and we will do our best to do so in this situation, but we also must be mindful of personal privacy issues and legal complexities.

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