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Knight 2.0: Jefferies Rescues FXCM With $300 Million Bailout, CNBC Reports
In an apparent replay for 2012's Knight Trading algo-implosion $400 million cash-infusion bailout, Jefferies (owned by NY-based I-bank Leucadia) is riding its white horse to the rescue of FXCM and its $200-million-plus client losses:
- *LUK IN $300M DEAL TO LET FXCM CONTINUE NORMAL OPS: CNBC
- *LEUCADIA GIVE FXCM $300M IN FINANCING CNBC
Leucadia will get $250m in senior notes as part of the deal, CNBC says. So - in summary - a central bank blew up an FX broker and a mid-market junk-bond underwriter bailed them out... must be good for a green close for the week in stocks!
No statement from either side yet.
Leucadia deal to invest $300m in $FXCM is done. Deal includes $250 million sr secured notes with 10% coupon.Will allow firm to stay in biz.
— DAVID FABER (@davidfaber) January 16, 2015
* * *
So FXCM can back to more of the same?
Just got this advert on Facebook. Already well aware of this company, thanks pic.twitter.com/dEhi5XKuCq
— Peter Spence (@Pete_Spence) January 16, 2015
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Meats back on the menu boys!
This just occurred to me..
Regardless of the reason for pulling the peg, the fact that the SNB did it in such a sudden and violent manner and forced such huge losses on the modern façade of a market tells me two things,,
1. They had to be on the other side of the trade somewhere to hedge against what they had to know was going to be a huge book loss (just the everyday evil you expect from a central bank).
2. They felt compelled to do it all immediately because they are aware of certain clear and present dangers.
Otherwise, they could have just “communicated” their “policy” “intentions” and unpegged in manageable steps.
Look'd dis shit.
http://en.wikipedia.org/wiki/Leucadia_National
Why aren't regulations enforced about the kinds of no no businesses a bank and affiliates can not be in?
They've an appearance of incestuousness!
Thaz just a mere formality.....now move along prole
Some talk on the streets that fresh and strongly capitalized Tickmill is in talks to buy Alpari's non-UK client base. Deal could be announced this weekend.
OPERATOR: Leucadia Natonal, how may I diect your call?
CALLER: Yea, this is Mr. Yellen...
That hair ball ad says all you need to know about that boiler room.
I wonder who will bail them out next.
It's fitting that CHF acronym also means Congestive Heart Failure
Looks like that company is packed full of tribe. Any questions?
#2 Greece or German exit.
I love when everyone lines up to save my ass on a bad trade. I'm in the wrong club, I guess.
countdown to 3:59 pm , keep a close eye today bitchez
http://i.imgur.com/xw7gwh9.jpg
Time for our daily Ukraine news....
https://twitter.com/unkn0wnerror/status/556157647658172416
Looks like my flight will be delayed again.
At least the place is kept up better than Heathrow.
But those poor Uke bastards should feel a little better when Porko sends the 60 year old vets to help out after their two week combat refresher course.
Ukrainian fighters: "We are just 'cannon fodder' for Donetsk airport"
Ukraine President Signs Mobilization Decree: 50,000 To Be Drafted
-aged 25 to 60.. Combat trainings for servicemen will take 10-15 day
Here is Givi and Motorola raining down some motar fire on the Ukies.
Givi and Motorola call the truck moving the Ukies in and out of the airport "meat wagons" because they just pick up bodies all day.
https://www.youtube.com/watch?v=8l4mvWzO1dE
They don't want to fight and kill Ukies but they have no choice. NovoRussians will treat the Ukie's better than Kiev will.
Flash fed buys cnbc
It will all be thrown onto the backs of current and future generations via .gov and Central Bankster skullduggery.
The things that caring Parents tell their children never to do - done by Washington & Wall Street with reckless abandon.
Such perversion! Bailouts for gambling financiers and endless money at the Treasury window for Banksters at 0.25% to lend out to sheeple at 4.5%-29% with ZIRP on savings for the working class.
Welcome to Biff's World!
This is all a head fake and a whole lot of nothing.
If Switzerland itself collapsed tomorrow who here would care?
My point exactly.
WOOT! WOOT! I live to trade another day!
"We'll start with rupiah. We'll allow...an extra ten percent for every dollar you put down."
If you think this is good, just wait until you see our fantastic 2 for 1 FX bucket sho...ah, brokerage, deals in February!
Tax payers bite it.
You know the Fed is behind every one of these deals. Can't wait for Buffet to announce his FX aquisition. No one would buy this shit without a Fed/Treasury backstop because no one really knows the extent of the losses yet.
I understand an AIG VP is missing...
BOLI?
And anothre bailout...
Fire sale!
Jeffries probably bought FXCM with the money they made shorting the EURCHF.
...Pure irony.
HFT's buying HFT's. As expected.
Breathing life into Zombies is not a policy option if you expect market discipline to be maintained.
Moral Hazard. Let them fail.I would rather see leaping Bankers,preferably Central bankers.
One beat-up,rusty Guillotine put into operation would go a long ways in solving this issue.
I think the question on a lot of minds is: Why was it okay to let the market slide in '87,and not now?
Doesn't this firm just sum up everything that is wrong with our financial system. First you get a fine for stealing other money by the hundreds of millions. Of course it is 8 million in fines. Then you list your company on the NYSE because it adds so much to the world. Then you send more of your sheep errr sorry traders to your dealing desk to satisfy your shareholders. Lastly you get caught with your pants down because you allow risk that goes off the charts and it fails. So of course you get a bail out. Just fucking unbelieveable.
"So of course you get a bail out..." Huh?
Let's get a little perspective people :-)
As long as the "bail out" doesn't come from the public treasury, money printing, or my pocket as a taxpayer... BAIL AWAY!
(Full disclosure: Yesterday, I went to "My Account" at FXCM to set up a withdrawal of all funds except profits. I am pleased to see that now there will be no problems!)
I lost $45k trading with FXCM, still have perhaps $50 in the account. I believe if I put in $5k more I will get half price spreads.