Richard B. Handler
Richard B. "Rich" Handler (born May 23, 1961) is an American businessman, and chief executive officer (CEO) of Jefferies Group since 2001; one of the longest-serving CEOs on Wall Street.[1] Handler is also the CEO of Jefferies Financial Group, Inc, a diversified financial services company.[2]
Richard B. Handler | |
|---|---|
| Born | May 23, 1961 |
| Education | University of Rochester (BA) Stanford University (MBA) |
| Spouse | Martha Hunt Handler |
Early life and education edit
The son of Alan and Jane Handler, Richard Handler grew up in New Jersey, graduating in 1979 from Pascack Hills High School in Montvale.[3][1] He received a BA in economics from the University of Rochester magna cum laude in 1983 and an MBA from Stanford University in 1987.[4] Prior to Jefferies, he was an investment banker at First Boston and later he worked for Michael Milken at Drexel Burnham Lambert in the high-yield bond department.[3]
Professional career edit
Jefferies edit
Handler joined Jefferies in April 1990 as a salesman and trader[3] and was appointed CEO on January 1, 2001,[5] Chairman in 2002.[3] Since his appointment as CEO, Jefferies’s shares had risen 154% between 2001 and 2013, and the firm grew from a securities-industry boutique into a full-service investment bank, with revenues of $3.1 billion as of 2019.[6][7]
Egan-Jones report edit
In November 2011, ratings company Egan-Jones issued a negative report regarding Jefferies that caused a 20% decline in the Jefferies stock price minutes after the opening bell the following morning.[8][9] Chris Kotowski of Oppenheimer & Co. made public statements pointing out figures in the Egan-Jones report that were 'so grotesquely wrong they should immediately jump off the page to anyone remotely familiar with the numbers.'[10][11] The Egan-Jones report was described by Kotowski in his research report from November 23, 2011 titled "Another Hack Attack" as 'flat out wrong',[12] and was followed by what Handler characterized as a multi-week public attack on Jefferies by Sean Egan.[9] Handler and the Jefferies management team responded with unprecedented immediacy and transparency, collapsing in a matter of days 75% of a sovereign debt position that had been identified as a problem by Egan to prove the bonds were hedged and highly liquid, sharply reducing the rest of Jefferies balance sheet, and publicly addressing the accusations on an almost daily basis.[13] This aggressive and unconventional response resulted in an eventual rebound in Jefferies share price.[9]
On June 21, 2022, the SEC charged Egan-Jones Ratings Company with violating conflict of interest provisions in a set of separate matters in 2018 and 2019, concluding that the firm “failed to establish, maintain, and enforce policies and procedures reasonably designed to manage such conflicts of interest,”[14] and further, that Egan himself had caused the violations.
Egan-Jones agreed to settle for a $1.7 million penalty and $146,000 of interest and disgorgement, and Egan himself separately settled for a $300,000 penalty; neither party admitted or denied the SEC’s findings.
Rescue of Knight Capital Group edit
In August 2012, Handler played a lead role in saving Knight Capital Group after the company suffered a $440 million loss due to a 'technology glitch.' Together with Brian Friedman, President of Jefferies Financial Group Inc., Handler structured and led the rescue,[15] which included making Jefferies the largest shareholder with an investment of $125 million.[16][citation needed]
Merger with Leucadia edit
In November 2012, Jefferies announced its merger with Leucadia National Corporation, its largest shareholder and a longtime partner of Handler. In March 2013, Jefferies merged with Leucadia,[17] and Handler became CEO of both companies.[18] In 2018, Leucadia rebranded as Jefferies Financial Group Inc. to better reflect the company’s business focus.[19]
Other professional activities edit
In October 2018 Handler was named Board Chair by The University of Rochester Board of Trustees, to which he was first elected in 2005.[20][21] Previously, Handler also served as Chairman of the Finance Committee and as Co-Chairman of the university's $1.37 billion Capital Campaign, The Meliora Challenge that concluded in 2016.[22]
Handler donated $25 million to the University of Rochester for the Jane and Alan Handler Scholarship Fund (named for his parents) for exceptional students from underprivileged backgrounds with the potential for future leadership.[22]
Handler is Chairman and CEO of the Handler Family Foundation. He is also active in conservation efforts through the Wolf Conservation Center, of which his wife Martha presides as president.[23]
References edit
- ^ a b "10 Things You Didn't Know About Jefferies Financial CEO Richard Handler". Money Inc. November 13, 2021.
- ^ "Richard B Handler Chief Executive Officer, Jefferies Financial Group Inc". Bloomberg L.P. November 13, 2021.
- ^ a b c d "'Intensely Private' Handler Lifts Veil in Defense of Jefferies". Bloomberg.com. 2011-12-19. Retrieved 2021-10-08.
- ^ . Archived from the original on 2014-03-26. Retrieved 2023-08-09.
- ^ . Archived from the original on 2014-05-02. Retrieved 2023-08-09.
- ^ "Jefferies Closes In on Deal for Prudential's Bache Unit". The Wall Street Journal. April 7, 2011.
- ^ "Jefferies CEO Is King of Pay". The Wall Street Journal. January 29, 2021.
- ^ "Tiny shop Egan-Jones Ratings Co. has a big impact". Crain's New York Business. 2011-11-04. Retrieved 2021-10-08.
- ^ a b c Craig, Susanne (4 December 2013). "An Unexpected Apology Stokes the Embers of a Feud". DealBook. Retrieved 2021-10-08.
- ^ . Archived from the original on 2013-05-29. Retrieved 2023-08-09.
- ^ "Normalcy Returns Faster Than You'd Think After Financial Crises" (PDF). Retrieved 2023-08-09.[dead link]
- ^ "Jefferies Group" (PDF). Retrieved 2021-10-08.
- ^ "'Intensely Private' Handler Lifts Veil in Defense of Jefferies". Bloomberg.com. 2011-12-19. Retrieved 2021-10-08.
- ^ U.S. Securities and Exchange Commission (June 21, 2022). "SEC Charges Egan-Jones Ratings Co. and CEO with Conflict of Interest Violations".
- ^ Popper, Ben Protess and Nathaniel (2012-08-07). "Quick Lunge for a Lifeline Helped Knight Capital Skirt Collapse". DealBook. Retrieved 2023-08-09.
- ^ Fox Business http://markets.m.foxbusiness.com/quickPage.html?page=32642&content=77699041&pageNum=-1[dead link]
- ^ Alden, William (2014-04-02). "Handler, Leucadia's Chief, Takes Pay Cut in New Role". DealBook. Retrieved 2023-08-09.
- ^ Jefferies Press Release http://www.jefferies.com/News/PressReleases/201/304[dead link]
- ^ "Leucadia to shed most non-financial assets, rename as 'Jefferies'". Reuters. April 9, 2018.
- ^ . Forbes. 2013-01-19. Archived from the original on 2013-01-19. Retrieved 2022-07-22.
- ^ "About the University of Rochester". University of Rochester. Retrieved 2022-07-22.
- ^ a b "Richard Handler '83 elected University Board chair". University of Rochester. October 5, 2018.
- ^ "Wolves of Wall Street Party to Save Actual Wolves of Westchester". Bloomberg L.P. June 6, 2019.
External links edit
- Jefferies Group LLC official website