Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Gleacher Should Fire CEO Hughes, Investor Says

Don't Miss Out —
Follow us on:

May 2 (Bloomberg) -- Gleacher & Co., the brokerage that closed its fixed-income business, should fire Chief Executive Officer Thomas Hughes, according to private-equity firm MatlinPatterson Global Advisers LLC.

Hughes, 55, should be replaced along with Chief Operating Officer John Griff for the brokerage’s “disappointing results,” MatlinPatterson said today in a regulatory filing. The New York-based private-equity firm, which owns about 29 percent of Gleacher, said the company should wind down, pursue a merger or sale, or reinvest assets in a more promising venture. Hughes and Griff didn’t immediately respond to messages seeking comment.

Activist shareholder Clinton Group Inc., part of a coalition with a 7.7 percent stake in the brokerage, said in a regulatory filing last month that Gleacher should seek a “rapid rebirth” as an asset manager. The two investment firms nominated competing slates of directors ahead of Gleacher’s annual meeting, scheduled for May 23.

Gleacher said April 10 that it’s closing the fixed-income business, which generated most of the New York-based company’s revenue, as salesmen defected and customers suspended trading. The brokerage was in talks to combine with Sterne Agee Group Inc., people familiar with the matter said at the time. Gleacher’s stock, which has dropped 62 percent in the past two years, was little changed today at 71 cents a share.

To contact the reporters on this story: Zeke Faux in New York at zfaux@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.