Jefferies Investment Bank: Responding with Transparency, (A) and (B)
Image
Region
North America
Topic
Strategy & General Management
Accounting & Finance
Length
15 pages
Keywords
investment bank
rating agencies
downgrading
stock
market effects
Copyright Holder
Notre Dame
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students
Jefferies & Company, the most rapidly growing medium-sized investment bank, quickly became the focus of many ratings agencies upon the collapse of MF Global. While many of the ratings agencies found no need for concern, Egan-Jones concluded the contrary. The little known rating agency published a report downgrading Jefferies’s outlook, sending Jefferies’s stock plummeting downward with no end in sight.
Learning Outcomes
- Restore value to Jefferies’s shareholders through instilling confidence in the marketplace.
- Use the existing crisis as a platform to communicate company values, increasing brand equity in the marketplace.
- Maintain existing and continue to originate new client relationships in light of the recent crisis.
- Gain an understanding from the current crisis, allowing senior management to develop a strategy to limit the impact of similar issues in the future.