Jefferies CEO Richard Handler and Executive Committee Chairman Brian Friedman sent the following uplifting message to all staff Monday:
'We often try to share with you what it means to be a part of Jefferies, why we should all have pride in what we do and why our firm fills a significant need in today's world. This morning, an emergency $400 million capital raise was completed for Knight Capital that more than replaced the after-tax loss from their trading issue last Wednesday. Jefferies conceived and structured this capital raise, and was the largest purchaser of the convertible preferred stock.
As a result of Jefferies’ efforts,
1. Knight's existing shareholders avoided what some considered to be a likely bankruptcy filing.
2. Nearly 1,500 people still have their jobs.
3. Knight's bondholders, commercial banks and other creditors were protected.
4. A highly valued provider of stock market liquidity will be given the chance to thrive once again - great news for the health of the global financial markets.
5. Six firms who had existing relationships with Knight Capital and its management now own securities on what we believe are attractive terms.
6. Jefferies and our shareholders have been compensated for a job well done.
Again, we are not doing G-d's work, but collectively we are making a difference every single day. We have the human capital, culture, resources, creativity and tenacity to make good things happen, while others shy away or simply protect their own interests. Clients first, always. Another good day at Jefferies.
Thank you,
Rich and Brian'
image: © bumeister1
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