This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jeffries, Egan Jones in Credibility Title Bout

When asked about Jefferies's Monday letter, Sean Egan said in a phone interview with TheStreet that the ratings firm didn't have a response. Of Egan Jones ratings, he said "we are known for our timely, accurate ratings." According to an email obtained by Bloomberg, Egan Jones will provide a response to Jefferies letter later this week.

With the ratings notices, the TV appearances and Monday's letter, it's clear that a war of words has turned into a battle. At a time of widespread market fear and when many bank shares fall to 2011 lows, the stakes are critically high.

As of Monday trading, the letter seems to have stabilized shares - but they're still over 20% below the levels of $12.27 a share prior to Egan's ratings downgrade. After falling more than 4% in early trading to $9.60, Jefferies erased earlier losses and gained nearly 2% to $10.27 a share in afternoon trading. Meanwhile, the KBW Bank Index (BKX) is down over 2% to $36.47.

In its most recent quarter ended in August, Jefferies earned $68.3 million in profits, a slowing on earnings from earlier quarters in the year. About Jefferies's fourth quarter ending in November, Handler wrote that the bank "expect[s] to record operating results for our fourth quarter that, although not where we want them to be, will be profitable and stronger than our third quarter." The investment bank has come out of the crisis on track to earn over $200 million in annual profits after posting a 2008 loss of $540 million.

Whether the letter will mirror failed jabs at manipulative shorts during the demise of Lehman Brothers and Bear Stearns, or if it will be seen as a stabilizing blow against Egan Jones's analysis and its reputation is still to be seen.

For second-sized players in Wall Street's high stakes investment banking and securities trading businesses, the battle among lean mean welterweights, now has a heavyweight dimension.

-- Written by Antoine Gara in New York.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JEF $0.00 0.00%
GS $188.67 -0.27%
JPM $66.78 -0.15%
MCO $103.49 -0.65%
MS $33.59 -0.15%


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs