Egan Jones Downgrades Jefferies On Concerns About Sovereign Exposure Amounting To 77% Of Equity

Because like with insolvent sovereigns and the law of communicating vessels, there rarely is just one cockroach.
From the note:






Jefferies Group Inc: EJR lowered BBB to BBB- (Neg.) (S&P: BBB)

Synopsis: Changed environment - the problems of MF have increased scrutiny of other medium-sized broker/dealers. We are concerned about the values included the $2.7B of " sovereign obligations " per page 24 of the Aug. 2011 10-Q representing 77% of shareholders equity. Although not as highly

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