Leucadia Buys Stake in Jeffries as Banks Turn to Private Equity

I noticed that Leucadia (LUK) just bought a 14% stake in Jeffries (JEF). I think we're going to see more of this in the near future. Jeffries is not in good shape and they need the cash. For our purposes, I think we can consider Leucadia to be a private equity firm.

Of course, there's the question of why so many banks and brokerages are turning to private equity and SWFs instead of the public market. The easy answer is that they've been completely shut out of the public markets. The other sources are to borrow from Willie Sutton, where the money is.

Felix Salmon has more.

Comments

[User 174189]

Learn how to spell the company you are commenting on.

[eddy]

Leucadia is spelled correctly.

www.leucadia.com/

Also, a preposition is something you shouldn't end your sentences with.