Gerald Segal

Gerald is the founder of FNG and is one of the most experienced writers covering the online trading sector. Prior to starting FNG, Gerald founded Forex industry B2B news website LeapRate.com in 2010, selling it in 2018 to publicly traded Catena Media plc (STO:CTM). An avid skier, cyclist and ice hockey player, Gerald was previously an investment banker for more than a decade at Bear Stearns, Robertson Stephens, and Merrill Lynch. Gerald holds an MBA from Columbia University in New York and a BCOM degree from the University of Toronto.

3 Comments

  1. Kevin
    July 15, 2020 @ 10:40 am

    So what’s all this I read about Jefferies maximum loss from fxcm in the hundreds of millions of dollars?

    Reply

    • Gerald Segal
      July 15, 2020 @ 5:10 pm

      Hi Kevin. That’s just an accounting thing, which we believe has confused some of the not-so-savvy writers at some FX blogs who just copy that phrase from Jefferies financials without understanding what it really means.

      Jefferies does not consolidate FXCM into its financials, it accounts for FXCM using the “equity” method – basically carrying its FXCM investment on its books at the value determined by Jefferies’ accountants each quarter. So, at any point in time, Jefferies discloses deep in its financials that its total potential maximum loss from its FXCM investment is “X”, with “X” being whatever the current carrying cost is – just like any other asset Jefferies has on its books. If for some reason the value of FXCM drops to zero and Jefferies will get no more cash flow from FXCM, then indeed Jefferies will need to write its investment in FXCM down to zero, and take an accounting charge.

      But that’s all it is (or might be), a simple accounting charge. As we note in the article Jefferies has already made a hefty profit on its investment in FXCM, and it basically owns the company and all future cash flows to come from FXCM.

      Reply

  2. HARRY S TRUTHMAN
    July 16, 2020 @ 2:22 pm

    HARD TO BELIEVE THE INDUSTRY LEADER HAS FALLEN SO FAR SO FAST. IT USED TO BE FXCM AND FOREX.COM AGAINST ALL COMERS NOW IT’S IG AND PLUS500 AND EXNESS AND ETORO. WHOSE GOING TO FALL NEXT?

    Reply

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