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Jefferies Staff Riled By Pay & Restructuring
January 5, 2012
Jefferies Group's executives and other employees in the firm's prime-brokerage unit are threatening to leave in a dispute over issues including a recent restructuring and year-end compensation, people familiar with the matter said. The dispute led to a series of meetings Tuesday involving Jefferies executives and its global head of prime brokerage, Glen Dailey, who was named co-head of the unit with Matthew Baldassanoas.
Prime-brokerage executives also negotiated for a better compensation structure, reportedly with added certainty of potential gains for employees of the unit.
Jefferies doesn't disclose financial information about the prime-brokerage business in its earnings reports or in company regulatory filings - but it is generally considered a midsize player in the business, smaller than the likes of Morgan Stanley and Goldman Sachs, and bigger than so-called mini-primes that typically cater to the smallest hedge funds.
Mr. Dailey, in response to questions from The Wall Street Journal, acknowledged the discussions but said no one was leaving. He added, "family affairs are now in order." He referred other questions to a firm spokesman, who declined to comment.
Jefferies, of course has been under increased scrutiny in recent months, and to some was on a death watch, as it has faced questions about its financial health in the aftermath of the collapse of onetime rival MF Global Holdings. For more go to, [WSJ 1/5/12]

