Connect with us

Hi, what are you looking for?

Jewish Business News


Jefferies CEO Richard Handler Rescues FXCM From The Jaws Of Bankruptcy

It wasn’t easy to rescue foreign exchange broker FXCM from almost certain bankruptcy, but Jefferies CEO Richard Handler and his team spent a sleepless night doing just that, as reported by the Wall Street Journal. Leucadia,  where Handler also serves as executive, and Jefferies were able to raise $300 million in financing in just 36 hours. FXCM will have to pay 10% interest, and Leucadia will receive a share of dividends and a decent share of the sale FXCM may make of segments. It isn’t an ideal scenario for FXCM, but is good for Jefferies and Leucadia, and preferable to bankruptcy.

Jefferies stepped in to save Knight Capital after an error in stock orders threatened the company. In the case of FXCM, it was the unexpected move by the Swiss National Bank to eliminate any cap on the value of the franc. The result was that customers owed FXCM $225 million, and the firm faced the possibility of a serious breach of capital requirements. FXCM CEO Drew Niv contacted Richard Handler, who managed to bail out Knight Capital in a manner what was relatively quicker than what could be expected from a private equity solution. Handler stepped in just as the bankruptcy filing was looming. If FXCM had not secured this deal, it would have had to take money from customers, a move that would have been disastrous for FXCM.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.