Increased scrutiny into Jefferies' operations hasn't let up in the wake of MF Global's collapse, and now there's new focus on what might happen next for the mid-sized firm.
Charlie Gasparino at Fox Business Network writes that it may be difficult for Jefferies to remain an independent firm because investors are newly wary of brokerage firms without sufficient capital to hedge against bad bets.
Rochdale Securities analyst Dick Bove says Jefferies could be acquisition fodder for Royal Bank of Canada or TD Bank Group, two Canadian banks that have been expanding south of the border. Another source said Jefferies could merge with an asset management firm.
Investment advisor Josh Brown at the Reformed Broker notes that the firm has become increasingly transparent about its European exposure over the past several days in a bid to appease the markets. Jefferies declined to comment.
If Jefferies goes, will the markets immediately condemn the next mid-tiered firm, sparking an unstoppable game of dominoes? Jefferies, like MF Global, had been hiring in recent months to compete with top investment banks. Smaller firms used to have a place at the table, but MF Global's demise may have made that no longer possible.
Women are still struggling to get ahead at Goldman Sachs, like at most financial firms. Of the 261 newly named managing directors, 50 are women, compared to 77 women of last year's 321-member MD class.
Deep-Seated Change (Bloomberg)
There's nothing cyclical about these job cuts. As the layoffs pile up, more and more people are convinced they're evidence of structural changes on the Street.
Now that MF Global has been occupying both headlines and calculators for the past three weeks, the government has decided it's time to expand its enforcement squads.
The moment you think you're immune to personnel changes is the moment you land yourself in danger. Just ask Robert Kelly, the former CEO of BNY Mellon who didn't think he had to listen to the board's wishes and ended up being ousted.
If you're going to be late to work at BofA Merrill Lynch in Hong Kong, expect a personalized note saying "Good Afternoon" from Matthew Koder, the head of global corporate investment banking for Asia-Pacific who was poached from UBS.
Banking can be an ethical career choice, one Oxford University professor argues, as long as bankers are inclined toward philanthropy and giving back. He says a banker can be 10 times more effective than an aid worker. Gauntlet thrown. Peace Corps, your move.
Getting Higher (Here is the City)
Executive pay at Barclays is now 75 times what the average U.K. employee makes. In 1979, it was only 14.5 times. A direct challenge to "the more things change, the more they stay the same" adage everyone loves to quote.
Buzz Around the Office
Cheerleading Moms (YouTube)
Go sons!
List of the Day: The Top States
Sometimes you have to follow the money. And the jobs. These states have both and are considered the best for business based on employment growth and other factors.
1. Utah
2. Virginia
3. North Carolina
(Source: Forbes)
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