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Jefferies (JEF) CEO Richard Handler and Executive-Committee Chairman Brian Friedman played...

Jefferies (JEF) CEO Richard Handler and Executive-Committee Chairman Brian Friedman played leading roles in saving Knight Capital (KCG) after its erroneous trades last week, including providing funds on Friday that allowed the latter to stay in business, the WSJ reports. Jefferies also helped with the structuring of Knight's $400M lifeline, of which the investment bank is providing a quarter.
Comments (1)
  • Is there a lesson here?

     

    Company gets into trouble. Management admits to a business error. Investors decide it's a 'good' company with likable management.

     

    Capital markets assess situation. Decision is made that KCG is not a Bank of America or a Lehman Brothers.

     

    Investors PONY up the funds to provide financing.

     

    Life goes on. No taxpayer bailout. No pretend hearings in Washington.

     

    Isn't capitalism beautiful when it is allowed to work?
    7 Aug 2012, 08:04 AM Reply Like
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