Thread: FXCM Revenues down 1% in Q2, still owes Leucadia $192.5M

The quarterly financial reports of retail forex broker FXCM Inc (NYSE:FXCM) have been increasingly difficult to decipher.

On paper, FXCM only reported a $60.5 million net profit for Q2 on earnings of $70.6 million. Which looks terrific. However a number of accounting charges mask what is really going on.

Our analysis indies that FXCM's 'company' is indeed doing OK, but it's having difficulty dealing with its large loan from Leucadia. Back in Q2 FXCM paid tens of thousands of dollars to Leucadia (in actuality, that's where nearly all of its EBITDA went), but FXCM still owes Leucadia the exact same amount it did in the end of Q1.

https://www.leaprate.com/2016/08/fxc...192-5-million/

It is funny that on precisely the same day of this leaprate article this additional one comes out...

Leucadia pleased with FXCM, anticipates loan repayment in 2017.
https://smnweekly.com/2016/08/04/leu...epayment-2017/

Leucadia made a shylock deal with FXCM if FXCM did not have sufficient capital to keep in business and meet its regulatory minimums.It was obvious at the time that they (FXCM) would have to sell assets to refund Leucadia or Leucadia would own them onto a default.They, in my opinion, won't ever make enough to refund Leucadia and at any point in time will be marketed by Leucadia or whomever the controlling stockholders is to satisfy the indebtedness.My best guess is that Leucadia does not want to maintain the currency trader business and will sell the asset(FXCM) if and if they get it.

Originally Posted by ;

It's funny that on exactly the same day of the leaprate article this additional one comes out... Leucadia pleased with FXCM, expects loan repayment in 2017. https://smnweekly.com/2016/08/04/leu...epayment-2017/

strange

BS put out by a PR company and spread by paid surrogates to the clients of FXCM and stakeholders that are interested but uninformed. (workers and vendors)

Sounds likely that fxcm is going to be sold eventually. Will be interesting to see if /when employees and management begin bailing.