Jefferies Group, an independent, full-service global securities and investmentbanking firm, surged 6.7% higher on Tuesday following reports of a much better than expected second quarter result.
At the time, it had a significant brokerage operation but did not have the research or investment-banking conflicts of interest that saddled full-service firms.
Short-termism has resulted directly or indirectly in corporate earnings games, the deferral of investments needed for long-term competitiveness and the transformation of investment and commercial banking from a capital-facilitating agency service business into a principal proprietary trading business.
For accountants, the harshest aspect of the new legislation is its outright ban on nine kinds of non-audit service, including building financial-information systems, legal services and investmentbanking.