Broker FXCM shares sink pre-market following loan details
LONDON Jan 20 (Reuters) - Shares in retail currency broker FXCM tumbled on Tuesday after it laid out details of a loan aimed at saving the company after $200 million in losses from last week's shock removal of the cap on the Swiss franc.
The U.S. company is one of the biggest of the online and retail brokers who have prospered over the past decade from a rise in small-time currency speculation, often by individuals working with their own money.
It agreed an emergency loan with Leucadia National Corp on Friday, laying out more details, including maximum funding charges of 17 percent per annum, in a statement while European and U.S. markets were closed overnight. here
Frankfurt-listed shares in the company fell 40 percent in value to 2.299 euros per share, according to Reuters data. In pre-market trading ahead of opening in New York, where the stock has not traded since the end of last week due to a U.S. market holiday, prices lost as much as 81 percent of their value in heavy volume. (Reporting by Patrick Graham, editing by Anirban Nag)
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