Jefferies Group, the investment bank acquired by Leucadia National earlier this year, said its fiscal second-quarter profit fell 34% as fixed-income-trading revenue slumped amid concerns that the Federal Reserve would taper its economic stimulus programme.

Jefferies and Leucadia chief executive Richard Handler in a statement called the trading environment "tepid and cautious," which could bode poorly for larger rivals including Goldman Sachs and Morgan Stanley that report earnings next month.