Wednesday’s Headlines: Jefferies will claw back defectors’ bonuses

Jefferies isn’t playing around. The struggling investment bank sent a memo telling employees they will receive a discretionary cash bonus for 2011 – but the firm will insist it be repaid if workers leave for a competitor within the following year, Fox Business Network reported. Restricted cash paid in lieu of restricted stock is subject to a 20-month clawback policy.

CEO Richard Handler wrote in the memo: “We believe this approach assures that our year-end compensation pool will only accrue to the benefit of those who are committed to the long-term success of our firm.”

Jefferies allocated $1.17 billion – or 59 percent of net revenue -- for employee compensation in the first nine months of its fiscal year, amounting to about 59 percent of net revenue.

Other News:

France’s Credit Agricole will cut 2,350 jobs, mostly in investment banking. [Reuters]

Deutsche’s head of corporate finance investment banking in Japan resigned as the bank cut 20 jobs in Tokyo. [Bloomberg]

The JPMorgan Chase owned hedge fund Highbridge Capital laid off three senior executives, including two portfolio managers. [AR Magazine]

Morgan Stanley returned $700 Million to investors of its flagship global real estate fund in an effort to keep it open until June 2013. [WSJ]

The struggling Goldman has lost 37 partners this year, adding nine from outside. [Bloomberg]

Goldman’s asset management division will buy the mutual fund division of Dividend Growth Advisors. [On Wall Street]

Goldman is sitting out on the Chinese IPO market. [Businessweek]

Analysts worry Germany’s Commerzbank will not rise to pressure to raise capital. [DealBook]

Morgan Stanley’s settlement with MBIA potentially improved its position for 2012. [Reuters]