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 just reported a $60.5 million net profit for Q2 on revenues of $70.6 million. Which looks great. However a number of accounting charges mask what is really going on.

Our analysis shows that FXCM's 'business' is indeed doing OK, but it is having trouble dealing with its large loan from Leucadia. In Q2 FXCM paid millions of dollars to Leucadia (in fact, that's where most of its EBITDA went), but FXCM still owes Leucadia the same amount it did at the end of Q1.

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

Leucadia made a shylock deal with FXCM when FXCM did not have sufficient capital to continue in business and meet its regulatory minimums.It was obvious at the time that they (FXCM) would have to sell assets to repay Leucadia or Leucadia would own them on a default.They, in my opinion, will never make enough to repay Leucadia and at some point in time will be sold by Leucadia or whomever the controlling stockholders may be to satisfy the indebtedness.My best guess is that Leucadia does not want to be in the currency dealer business and will sell the asset(FXCM) if and when they acquire it.

It's funny that on the same day of the leaprate article this other one comes out...

Leucadia pleased with FXCM, expects loan repayment in 2017.
https://smnweekly.com/2016/08/04/leucadia-pleased-fxcm-investment-expects-loan-repayment-2017

strange

BS put out by a financial PR firm and distributed by paid surrogates to quiet the customers of FXCM and other interested but uninformed stakeholders.(employees and vendors)

Seems likely that fxcm will be sold eventually. Will be interesting to see if /when key management and employees start bailing.