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Stock impact report

Dive Deposits: Jefferies execs go on damage control over First Brands [Yahoo! Finance]

Sumitomo Mitsui Financial Group Inc Unsponsored American Depositary Shares (Japan) (SMFG) 
US:NYSE Investor Relations: smfg.co.jp/english/investor
Company Research Source: Yahoo! Finance
Three weeks ago, executives at Jefferies might have been excused for thinking the lead storyline at the bank's investor day this coming Thursday would have been details of an enhanced partnership with Sumitomo Mitsui Banking Corp. That changed last week, when Jefferies disclosed exposure to debt from the bankruptcy of auto parts supplier First Brands. Jefferies CEO Rich Handler and President Brian Friedman, in a letter Sunday , sought to stem the tide of concern from investors, who have sent the bank's stock plunging 22.6% since Sept. 30 , just after First Brands declared bankruptcy. The executives said Jefferies' exposure to First Brands is about $45 million – a far smaller figure than the $715 million mentioned in last week's disclosure. “Relative to the scale of Jefferies, we are confident that any losses or expenses from these investments … can readily be absorbed and do not threaten our financial condition or business momentum,” Handler and Friedman wrote. “We believe th Show less Read more
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