Market Overview

Report: FXCM Turns To Jefferies To Plug $200 Million Hole

Report: FXCM Turns To Jefferies To Plug $200 Million Hole

FXCM Inc (NYSE: FXCM) is in talks with an investment bank to raise $200 million that could plug a hole left by this week's stunning rise in the Swiss franc.

The U.S. retail foreign-exchange broker said Wednesday that turmoil in currency exchange generated "negative equity balances owed to FXCM" of some $225 million, and that it "may be in breach of some regulatory capital requirements."

Citing unnamed sources, Bloomberg said Friday that FXCM is in talks to raise the money from Jefferies Group LLC (NYSE: JEF).

FXCM shares were halted for news Friday, after falling as much as 85 percent in the premarket.

The stock is down about 25 percent this week to $12.63.

Image credit: Deerstop, Wikimedia

Posted-In: BloombergNews Trading Ideas


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