As it has been noted on Zero Hedge and elsewhere, one significant consequence of the MF Global missing customer funds drama has been the increase in risk associated with money held at non-TBTF brokers. So it's interesting to read this article from Zero Hedge: http://www.zerohedge.com/news/egan-...-about-sovereign-exposure-amounting-77-equity "Egan Jones Downgrades Jefferies On Concerns About Sovereign Exposure Amounting To 77% Of Equity" Jefferies Group Inc: EJR lowered BBB to BBB- (Neg.) (S&P: BBB) Synopsis: Changed environment - the problems of MF have increased scrutiny of other medium-sized broker/dealers. We are concerned about the values included the $2.7B of " sovereign obligations " per page 24 of the Aug. 2011 10-Q representing 77% of shareholders equity. Although not as highly leveraged as MF Global's 40:1, we would prefer that JEF maintain a lower leverage than its 12.9:1.