Two years ago, Sean Egan, the managing director of the credit ratings agency Egan-Jones, criticized the investment bank Jefferies on CNBC, Fox Business Network and Bloomberg Television. Below are excerpts and video from some of those appearances.
Nov. 3, 2011 on Bloomberg Television Mr. Egan said that the major issue in downgrading Jefferies was the investment bank’s 13-to1 leverage.
“In the case of Jefferies, the operating environment has changed. They’re a medium-sized broker-dealer and post the MF Global bankruptcy, isk managers are looking at exposures.â€
Nov. 17, 2011 on Fox Business Network In the wake of the MF Global scandal, Mr. Egan defended the ratings cut for Jefferies, citing the investment banks’ leverage and sovereign debt holdings.
Watch the latest video at video.foxbusiness.comThe genesis of issuing our report on Jefferies was MF Global. It wasn’t a group of people wanting to beat down Jefferies. In fact, we come to this with clean hands. We just want to protect our clients.
Dec. 20, 2011 on CNBC After Jefferies reduced their leverage, Mr. Egan said that he still wanted to see the investment bank’s latest financial results.
“Regardless of how clean a balance sheet one can claim they have, in this current climate people are very nervous and I believe everyone’s balance sheet is under pressure to come down.â€
