Leucadia shareholders re-elect Rich Handler, Brian Friedman to Board of Directors

Maria Nikolova

At the Annual Meeting of Shareholders, Mr Handler and Mr Friedman, who also sit on the Board of Directors of FXCM Group, were re-elected to Leucadia’s BoD, along with other Leucadia’s incumbent directors.

Shareholders of Leucadia National Corp. (NYSE:LUK) have re-elected its incumbent directors to the Board of Directors, with the lineup of those to get another term including Rich Handler and Brian Friedman, who also sit on FXCM Group’s Board of Directors.

On Wednesday, Leucadia posted a filing with the United States Securities and Exchange Commission (SEC) about the outcome of the voting at its Annual Meeting of Shareholders, held on May 25, 2017. Mr Handler and Mr Friedman were re-elected with a large majority of the votes.

As per FXCM’s report from February this year, Mr Handler and Mr Friedman are also on the Board of Directors of FXCM Group. Jimmy Hallac, Leucadia’s Managing Director, back then took the role of Chairman of FXCM Group.

Apparently, the management ties between FXCM and its savior Leucadia remain in place.

FXCM Group continues to repay the loan that Leucadia has extended to the broker in the aftermath of the January 15, 2015 events. FXCM has been selling non-core assets in order to get cash to repay the loan. The latest agreed sale has been that of FXCM’s interest in FastMatch. The broker has estimated that the value of the disposed interest in FastMatch is around $55.6 million.

In its financial report for the first quarter of 2017, Leucadia put its maximum exposure to a loss as a result of its involvement with FXCM at $319.5 million. Leucadia explained that the number represented a sum of the carrying value of the term loan ($132.8 million) and the investment in associated company ($186.7 million).

Back in February, shortly after FXCM reached settlements with US regulators to exit the US market, Leucadia noted that: “We do not have the power to direct the activities that most significantly impact FXCM’s performance therefore its management may make decisions that are not in our best interest.”

Leucadia also said then that the consequences of the US regulatory action against FXCM for the broker’s operations in and outside of the US are hard to predict. There have been no other regulatory action against any of FXCM’s businesses ever since, however. In fact, FXCM UK said that it does not expect to be put into enforcement with the FCA and will not face any fines or public sanctions.

But Global Brokerage Inc (NASDAQ:GLBR), formerly known as FXCM Inc, is now facing the risk of delisting from NASDAQ due to low market capitalization. Global Brokerage has warned of potential default in case of delisting.

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