Forex Meltdown: FXCM in talks with Jefferies, among others, for $200 million bailout

FXStreet (San Francisco) - FXCM $FXCM is in talks with the securities and investment banking firm Jefferies Group $JEF for a bailout of $200 million according to Bloomberg. The move would help the Forex giant to resolve the situation after the hole generated by the SNB decision.

In a press release published yesterday, FXCM reported that after the "Swiss National Bank announcement this morning, clients experienced significant losses, generated negative equity balances owed to FXCM of approximately $225 million."

This movement placed the company in a jeopardized situation as "a result of these debit balances, the company may be in breach of some regulatory capital requirements."

$FXCM stocks trading was halted for news pending when the share was 88.2% down in the day. Rumors say that FXCM will publish a statement at 2 pm ET.

Previously, Jefferies injected $400 million in cash to Knight Capital Group Inc in August 2012. FXCM would be the second company saved by $JEF. However, Further talks say that FXCM is in talks with several private equity funds to raise $100-200 million by Monday.

Forex Magnates affirmed in a recent news that "one of the players FXCM has been rumored to talk to was ADS Securities, a cash-rich broker based out of Abu Dhabi who could provide a solution or outright exit strategy."

Long story short, Forex situation is as follow:

- Alpari: Insolvent
- Excel Market: Insolvent
- IG: $45 million hole (but company has $200 million in cash and is looking to buy brokers in problems)
- FXCM: $225 million hole
- Swissquote: $40 million hole
- Interactive Brokers: $120 million hole
- FXPro: Announced it remains solid capitalized
- Gain Capital: Reported they made profits on SNB day