As 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!”
…per the instructions enclosed in a letter sent out by CEO Richard Handler and Chairman Brian Friedman. The short version: Treat junior level employees like they are humans and not life-sized pieces of garbage. The longer version: Read more »
Like all amazing movies, miniseries, other works of art, the clip of Richard Handler accepting and taking part in the ALS Ice Bucket Challenge is a slow burn to an amazing finish. Oh, to be sure, it starts out leaps and bounds ahead of any other videos of its kind: that is, in Handler’s penthouse bathroom, in front of his jacuzzi. It’s just that at every turn, it gets exponentially better, in ways you can’t imagine, ’til you’re at the end and saying to yourself, “This is one of the most amazing things I’ve ever seen.” Obviously, this must be watched in full, many times over the course of the day and possibly on loop and in place of whatever your firm is showing in TVs throughout the building. But, if we might, here are our favorite moments:
:01: We’re in Richard Handler’s bathroom. Why is that? Most of the head honchos taking part in this challenge (Marissa Mayer, senior execs at JP Morgan, etc) take the plunge on the street in front of their company or in someone’s backyard. No matter, here we are, in Richard Handler’s bathroom.
:05: Handler is narrating this video in his boxers and an old tee-shirt.
:12: He lays out the rules, we’re still in his bathroom.
:56: He nominates Carl Icahn to take the challenge, and Icahn’s wife to dump the ice (Icahn later takes to Twitter to say he’s too god damn busy.)
1:15: He starts ripping open plastic bags of ice and dumping them into the tub. It takes a while, because, again, he’s doing the challenge 1) in a jacuzzi and 2) in a jacuzzi that looks like it can seat 7. “It’s a lotta ice,” he tells the camera.
2:02: Even though he just dumped 8 or 9 bags of ice into the tub, he dumps a hotel-style wicker ice bucket into the bath, just for good measure. Read more »
Jefferies Chief Executive Officer Richard Handler said he sued to stop construction of a roof deck across the street from his Tribeca apartment on behalf of his neighbors, according to an e-mail to employees. “I took the lead to help our neighborhood oppose what we know will be a major nuisance and disruption to our lives,” Handler, 51, said in the March 31 correspondence, the contents of which were confirmed by a Jefferies spokesman. “You can be assured we are not going after the city in any way and are only asking for their help in dealing with a huge potential problem.” Handler told employees he wrote the e-mail to apologize for “recent distractions in the media concerning me,” including stories that portrayed him as a “tone-deaf one-percenter.” [Bloomberg]
Until recently, being chief executive officer of Jefferies was an exercise in getting shit on. As the man in charge for the last 13 years, Richard Handler has had to put up with a lot of hurtful remarks that, while nothing to the person tossing them off, undoubtedly stung quite badly. “Third-tier bank.” Place “I wouldn’t let my maid’s kid work.” “Poor man’s Morgan Keegan.” So you can imagine that after a string of victories over the last several months that included getting involved in the slaughterhouse business and paying all-cash bonuses unlike some people, Handler and Co. would be feeling pretty good about themselves and that after announcing to the world they were getting paid more this year than their counterparts at big kid banks, they’d be feeling REALLY good about themselves. That payday, however, did not go over well when input into Moody’s proprietary just-make-it-up credit-rating model, and now Handler’s plan to gather everyone up to watch as the board shoots his compensation out of a tee-shirt gun in hundred dollar bills is completely ruined.* Read more »
I’m mesmerized by this JPMorgan research chart showing that big banks shouldn’t be broken up because they lend so much more to businesses and consumers than small banks do. See:
Basically for every dollar of normalized capital, JPMorgan has extended $12 of credit between March 2010 and September 2012, according to this note by JPM’s Michael Cembalest. Whereas the small banks have loaned out only about $2. Get with the program, small banks!
The trick here – besides “normalized capital”1 – is that “credit extended” means (1) “changes in commercial and consumer loan balances” plus (2) syndicated loan, corporate bond, muni bond, etc. underwriting. That is, if you stand between a company looking for money and the market that provides it, you get, um, credit for extending credit, whether you do that standing-between in traditional banking ways (take deposit, make loans) or in traditional investment banking ways (match bond buyer with bond issuer). “See, we’re lending,” says JPMorgan. “We’re just not lending our money.”2