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Right did this start them ball emporium fox business and that is the story of Egan Jones -- Jones.
The SEC potentially becoming -- some charges against the rating agency -- guest re arsenic -- business correspondent standing by.
And our New York studio that -- -- understand that you had a little conversation.
Charlie they have -- about.
I mean I really set this up a little bit it was last November I believe it was was right if -- MF global imploded.
Egan Jones came out would would report did pretty scathing report on the company known -- the brokerage firm known as Jefferies such as say they have some of the same exposures.
As MF global member MF global imploded people pull the money out because they were worried about their exposure to European debt.
Then and each -- -- issued a report.
Essentially the same thing with Jefferies.
The stock imploded.
And all hell broke loose listen to my questioning of -- in and you get an idea -- he's on the investigate.
-- right now.
The when I had a discussion along with my senior analyst.
With the CFO of Jefferies.
They took issue that we mentioned there are long positions.
On the Euro dad and didn't mention their short positions.
Our problem is that we had space constraints -- we had mentioned the sharp positions and a -- what -- that what we did mention another thing.
Shawn -- you know signal that isn't that material to your analysis the short position which sort of ameliorate -- long position.
It I mean shouldn't that have been in the report because you issue -- at a very critical time.
What would have taken to put three lines in -- Jeffrey -- is that you know they have short positions.
That sort of -- -- that balance out the long positions.
We issued a follow up report -- saying just that point that they core.
Reason for our taking -- negative action on Jeffries was not there.
Holdings or there -- offsets in the EU debt.
Is -- -- the SEC is threatening basically to ban.
The Egan Jones from the securities is no longer recognize them as a rating as a national recognized rating agency.
They say is because he somehow screwed up on his application that there's -- sort of process stuff that went on back in 2008 when they apply for this.
I'm talented I don't believe that this had to do in my view.
With one thing and one thing only it was that report.
Which nearly took out Jefferies.
Which left out a key piece of information.
And that has the SEC scared and they went back and retroactively.
Looked -- their application right after this goes out there.
-- anybody that's doing a lot of a lot of fomenting of this story it's some of the people at Jefferies are telling everybody that they should follow the story because they.
Still have the long knives out for Egan Jones so you know it's I think it's unfair.
The basic lease deal get rid of them based on one report.
But I believe that the NBS is you'll never admit to it that's what I believe is happening and by way.
You know they think about it you know shorting in his car is cause a lot less Havoc in the in the securities market -- -- stuff wrong -- SMP in movies back to you.
-- until I had these rating agencies as the story that keeps on -- as you know I'm -- yes parade out my senior business correspondent standing by.
In our --
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