Leucadia Says It Could Triple $300 Million Investment in FXCM
- The lender of last resort for FXCM in January has contracted an independent third-party valuation company to estimate its investment
According to a regulatory filing made by Leucadia National, the $300 million bailout package devised for FXCM is so far paying off handsomely for the investor. Back in January, FXCM received a rescue loan from the U.S. holding company.
Sticking true to its moniker, which is “baby Berkshire Hathaway”, Leucadia National has been very diversified in its investment strategy. The conglomerate operates in mining, healthcare, banking, telecoms and other sectors.
The rescue loan and associated rights are currently valued at $947 million
According to the estimate published by the company in its regulatory filing, the rescue loan and associated rights are currently valued at $947 million.
At the time, the investment banking arm of Leucadia National, Jefferies Group LLC, pocketed a hefty fee for arranging the deal between its parent company and the foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term broker. The amount that FXCM paid to the intermediary for devising the bailout totaled $21 million.
In the aftermath of the Swiss National Bank removing the floor under the EUR/CHF exchange rate, FXCM announced a hefty loss surpassing $225 million on January 16th. After the bailout deal with Leucadia was announced, shares of the company traded as low as $1.28 per share. A week before the ‘Black Swan Black Swan A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in Read this Term’ event, the company’s stock peaked out at $17.44. per share.
Handler and President at Leucadia National, Brian Friedman, shared in an official statement, “Our investment stabilized FXCM’s financial position, and has allowed management to focus on repaying our loan and reinvigorating growth in FXCM’s business.”
“We are impressed with the quality and strength of FXCM’s management, and are optimistic regarding FXCM’s long-term prospects,” he added.
According to a regulatory filing made by Leucadia National, the $300 million bailout package devised for FXCM is so far paying off handsomely for the investor. Back in January, FXCM received a rescue loan from the U.S. holding company.
Sticking true to its moniker, which is “baby Berkshire Hathaway”, Leucadia National has been very diversified in its investment strategy. The conglomerate operates in mining, healthcare, banking, telecoms and other sectors.
The rescue loan and associated rights are currently valued at $947 million
According to the estimate published by the company in its regulatory filing, the rescue loan and associated rights are currently valued at $947 million.
At the time, the investment banking arm of Leucadia National, Jefferies Group LLC, pocketed a hefty fee for arranging the deal between its parent company and the foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term broker. The amount that FXCM paid to the intermediary for devising the bailout totaled $21 million.
In the aftermath of the Swiss National Bank removing the floor under the EUR/CHF exchange rate, FXCM announced a hefty loss surpassing $225 million on January 16th. After the bailout deal with Leucadia was announced, shares of the company traded as low as $1.28 per share. A week before the ‘Black Swan Black Swan A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in Read this Term’ event, the company’s stock peaked out at $17.44. per share.
Handler and President at Leucadia National, Brian Friedman, shared in an official statement, “Our investment stabilized FXCM’s financial position, and has allowed management to focus on repaying our loan and reinvigorating growth in FXCM’s business.”
“We are impressed with the quality and strength of FXCM’s management, and are optimistic regarding FXCM’s long-term prospects,” he added.