Dive Deposits: Jefferies Executives on Damage Control
Jefferies' CEO and president have distanced their company from the bankrupt auto parts supplier, First Brands, and emphasized the bank's liquidity, assets, and a burgeoning partnership.
Three weeks ago, Jefferies' executives might have expected the lead storyline at the bank's investor day to be the enhanced partnership with Sumitomo Mitsui Banking Corp. However, this changed with the disclosure of exposure to debt from First Brands' bankruptcy.
Jefferies CEO Rich Handler and President Brian Friedman sought to address investor concerns in a letter on Sunday.
The bank's stock has plummeted 22.6% since September 30, following First Brands' bankruptcy declaration. Ahead of the investor day on Thursday, Handler and Friedman aim to reassure investors about Jefferies' financial stability.
Author's summary: Jefferies executives address investor concerns over First Brands bankruptcy.