Richard B. Handler | |
|---|---|
| Born | May 23, 1961 |
| Education | University of Rochester (BA) Stanford University (MBA) |
| Spouse | Martha Hunt 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]
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]
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]
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.
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]
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]
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]