Jefferies Hires Goldman's Welsh As Global Forex Head - Sources
April 24 2012 - 5:51PM
Dow Jones News
Jefferies Group Inc. (JEF) has hired Benjamin Welsh, a former
Goldman Sachs Group Inc. (GS) managing director, as global head of
foreign exchange and plans to recruit additional professionals in
the business, according to people familiar with the situation.
Welsh, a 20-year industry veteran, joined the investment bank in
January as part of Jefferies' efforts to beef up its
foreign-exchange operations, which include its Jefferies Bache
commodities and financial-derivatives unit. The company acquired
the business from Prudential Financial Inc. (PRU) last July for
roughly $430 million.
Welsh's arrival and other recent additions may suggest a
more-active hiring season for Jefferies. The firm was a heavy
recruiter of traders and bankers from larger rivals over the past
five years, though it became more selective in 2011 amid market
turmoil. Jefferies has recently added technology analysts Brian
Fitzgerald and Brian Pitz from UBS AG (UBS, UBSN.VX), according to
people familiar with the situation.
Jefferies reported 3,875 employees as of March 1, up 26% from
3,082 at the end of the first quarter a year ago.
Jefferies has been eager to build up the Bache business, which
has boosted the firm's commodities and international presence.
Earlier this month, a judge approved an offer from the unit to
acquire precious-metals assets from the estate of MF Global
Holdings Ltd. (MFGLQ).
During a recent conference call with analysts, Jefferies
Executive Committee Chairman Brian Friedman that, while the unit
Bache unit performed "a bit below our expectations" in the first
quarter, the firm believes the business "will be coming back over
the next quarter or two" as it has "continued to strengthen the
platform."
Welsh's addition came despite a retrenchment in currency markets
worldwide, with institutional investors pulling back and retail
traders replacing only some of their activity. The sovereign-debt
crisis in Europe and its continuing economic fallout have driven
currency traders to the sidelines with trading volumes having
collapsed in 2011 and early 2012, according to the Bank for
International Settlements, which reported worldwide figures in
March.
Before joining Jefferies, Welsh was a managing director in
Goldman's global commodities business. Previously, he worked at
J.P. Morgan Chase & Co. (JPM) as a managing director focused on
macro trading and held management positions at HSBC Holdings PLC
(HBC) and Citigroup Inc. (C).
Shares of Jefferies closed Tuesday down 0.8% at $16.20. The
stock has climbed 18% year-to-date.
-By Brett Philbin, Dow Jones Newswires; 212-416-2173;
brett.philbin@dowjones.com