Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'INSTITUTIONAL FINANCIAL MARKETS, INC. | ' |
Entity Central Index Key | '0001270436 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Trading Symbol | 'ifmi | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 15,255,509 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $12,928 | $13,161 |
Receivables from brokers, dealers, and clearing agencies | 1,643 | 1,846 |
Due from related parties | 349 | 883 |
Other receivables | 5,310 | 5,913 |
Investments-trading | 114,127 | 117,618 |
Other investments, at fair value | 26,446 | 26,877 |
Receivables under resale agreements | 35,975 | 29,395 |
Goodwill | 7,992 | 11,113 |
Other assets | 9,944 | 10,244 |
Total assets | 214,714 | 217,050 |
Liabilities | ' | ' |
Payables to brokers, dealers, and clearing agencies | 28,631 | 30,711 |
Accounts payable and other liabilities | 4,489 | 8,476 |
Accrued compensation | 2,789 | 4,224 |
Trading securities sold, not yet purchased | 54,739 | 49,504 |
Securities sold under agreements to repurchase | 36,729 | 28,748 |
Deferred income taxes | 4,530 | 4,530 |
Debt | 27,230 | 29,674 |
Total liabilities | 159,137 | 155,867 |
Commitments and contingencies (See Note 18) | ' | ' |
Stockholders' Equity: | ' | ' |
Preferred Stock, $0.001 par value per share, 50,000,000 shares authorized: Voting Non-Convertible Preferred Stock, $0.001 par value per share, 4,983,557 shares authorized, 4,983,557 shares issued and outstanding | 5 | 5 |
Common Stock, $0.001 par value per share, 100,000,000 shares authorized, 15,255,509 and 14,809,705 shares issued and outstanding, respectively, including 308,196 and 411,126 unvested restricted share awards, respectively | 15 | 14 |
Additional paid-in capital | 74,732 | 73,866 |
Accumulated other comprehensive loss | -584 | -636 |
Accumulated deficit | -26,632 | -21,754 |
Total stockholders' equity | 47,536 | 51,495 |
Non-controlling interest | 8,041 | 9,688 |
Total equity | 55,577 | 61,183 |
Total liabilities and equity | $214,714 | $217,050 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 15,255,509 | 14,809,705 |
Common Stock, shares outstanding | 15,255,509 | 14,809,705 |
Common Stock, unvested restricted share awards | 308,196 | 411,126 |
Voting Non-Convertible Preferred Stock [Member] | ' | ' |
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 4,983,557 | 4,983,557 |
Preferred Stock, shares issued | 4,983,557 | 4,983,557 |
Preferred Stock, shares outstanding | 4,983,557 | 4,983,557 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations And Comprehensive Income / (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Revenues | ' | ' | ' | ' | ||||
Net trading | $6,620 | $11,630 | $13,549 | $24,689 | ||||
Asset management | 3,386 | 4,155 | 7,643 | 8,917 | ||||
New issue and advisory | 2,388 | 572 | 2,718 | 1,567 | ||||
Principal transactions and other income | 1,841 | -2,623 | 3,512 | -7,413 | ||||
Total revenues | 14,235 | 13,734 | 27,422 | 27,760 | ||||
Operating expenses | ' | ' | ' | ' | ||||
Compensation and benefits | 7,568 | 12,521 | 15,538 | 26,018 | ||||
Business development, occupancy, equipment | 979 | 1,387 | 2,037 | 2,842 | ||||
Subscriptions, clearing, and execution | 2,052 | 2,349 | 4,251 | 4,666 | ||||
Professional fees and other operating | 1,908 | 3,016 | 5,229 | 6,535 | ||||
Depreciation and amortization | 267 | 359 | 598 | 669 | ||||
Impairment of goodwill | 3,121 | ' | 3,121 | ' | ||||
Total operating expenses | 15,895 | 19,632 | 30,774 | 40,730 | ||||
Operating income / (loss) | -1,660 | -5,898 | -3,352 | -12,970 | ||||
Non-operating income / (expense) | ' | ' | ' | ' | ||||
Interest expense | -1,109 | -1,035 | -2,238 | -2,064 | ||||
Income / (loss) from equity method affiliates | 1 | 95 | 27 | 1,614 | ||||
Income/ (loss) before income tax expense / (benefit) | -2,768 | -6,838 | -5,563 | -13,420 | ||||
Income tax expense / (benefit) | 89 | 34 | 99 | 46 | ||||
Net income / (loss) | -2,857 | -6,872 | -5,662 | -13,466 | ||||
Less: Net income / (loss) attributable to the non-controlling interest | -734 | -2,170 | -1,441 | -4,264 | ||||
Net income / (loss) attributable to IFMI | -2,123 | -4,702 | -4,221 | -9,202 | ||||
Income / (loss) per common share-basic: | ' | ' | ' | ' | ||||
Basic Income / (loss) per common share | ($0.14) | ($0.40) | ($0.28) | ($0.80) | ||||
Weighted average shares outstanding-basic | 15,105,751 | 11,658,512 | 14,987,079 | 11,504,613 | ||||
Income / (loss) per common share-diluted: | ' | ' | ' | ' | ||||
Diluted Income / (loss) per common share | ($0.14) | ($0.40) | ($0.28) | ($0.80) | ||||
Weighted average shares outstanding-diluted | 20,429,891 | [1] | 16,982,602 | [1] | 20,311,216 | [1] | 16,828,703 | [1] |
Dividends declared per common share | $0.02 | $0.02 | $0.04 | $0.04 | ||||
Comprehensive income / (loss): | ' | ' | ' | ' | ||||
Net income / (loss) | -2,857 | -6,872 | -5,662 | -13,466 | ||||
Other comprehensive income / (loss) item: | ' | ' | ' | ' | ||||
Foreign currency translation adjustments, net of tax of $0 | 74 | 6 | 90 | -360 | ||||
Other comprehensive income / (loss), net of tax of $0 | 74 | 6 | 90 | [2] | -360 | |||
Comprehensive income / (loss) | -2,783 | -6,866 | -5,572 | -13,826 | ||||
Less: comprehensive income / (loss) attributable to the non-controlling interest | -714 | -2,168 | -1,417 | -4,379 | ||||
Comprehensive income / (loss) attributable to IFMI | ($2,069) | ($4,698) | ($4,155) | ($9,447) | ||||
[1] | For the six months ended June 30, 2014 and 2013, weighted average common shares outstanding excludes a total of 145,966 and 344,834 shares, respectively, representing restricted Operating LLC membership units, restricted IFMI common stock, and restricted units of IFMI common stock which would be anti-dilutive because of the Companybs net loss. For the three months ended June 30, 2014 and 2013, weighted average common shares outstanding excludes a total of 71,418 shares and 371,778 shares respectively, representing restricted Operating LLC membership units, restricted IFMI common stock, and restricted units of IFMI common stock which would be anti-dilutive because of the Companybs net loss. For the six and three months ended June 30, 2014, weighted average common shares outstanding also excludes 2,749,167 shares from the assumed conversion of the 8.0% Convertibles Notes because the inclusion of the converted shares would be anti-dilutive. | |||||||
[2] | Represents foreign currency translation adjustment. There were no amounts reclassified from accumulated other comprehensive income / (loss). |
Consolidated_Statements_Of_Ope1
Consolidated Statements Of Operations And Comprehensive / Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Consolidated Statements of Operations [Abstract] | ' | ' | ' | ' |
Foreign currency translation adjustments, tax | $0 | $0 | $0 | $0 |
Other comprehensive income / (loss), tax | $0 | $0 | $0 | $0 |
Consolidated_Statement_Of_Chan
Consolidated Statement Of Changes In Equity (USD $) | Preferred Stock [Member] | Common Stock [Member] | Additional paid-in capital [Member] | Retained Earnings/ (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total Stockholders' Equity [Member] | Non-controlling Interest [Member] | Total | |
In Thousands | |||||||||
Balance at Dec. 31, 2013 | $5 | $14 | $73,866 | ($21,754) | ($636) | $51,495 | $9,688 | $61,183 | |
Net income (loss) | ' | ' | ' | -4,221 | ' | -4,221 | -1,441 | -5,662 | |
Other comprehensive income / (loss) | [1] | ' | ' | ' | ' | 66 | 66 | 24 | 90 |
Equity-based compensation and vesting of shares | ' | 1 | 673 | ' | ' | 674 | 241 | 915 | |
Acquisition / (surrender) of additional units of consolidated subsidiary, net | ' | ' | 250 | ' | -14 | 236 | -236 | ' | |
Shares withheld for employee taxes | ' | ' | -57 | ' | ' | -57 | -22 | -79 | |
Dividends/Distributions | ' | ' | ' | -657 | ' | -657 | -213 | -870 | |
Balance at Jun. 30, 2014 | $5 | $15 | $74,732 | ($26,632) | ($584) | $47,536 | $8,041 | $55,577 | |
[1] | Represents foreign currency translation adjustment. There were no amounts reclassified from accumulated other comprehensive income / (loss). |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities | ' | ' |
Net income / (loss) | ($5,662) | ($13,466) |
Adjustments to reconcile net income / (loss) to net cash provided by (used in) operating activities: | ' | ' |
Equity-based compensation | 914 | 1,554 |
Realized loss / (gain) on other investments | 57 | 130 |
Accretion of income on other investments, at fair value | -249 | ' |
Change in unrealized (gain) loss on other investments, at fair value | -1,973 | 9,863 |
Depreciation and amortization | 598 | 669 |
Amortization of discount on debt | 677 | 442 |
Impairment of goodwill | 3,121 | ' |
(Income) / loss from equity method affiliates | -27 | -1,614 |
Change in operating assets and liabilities, net: | ' | ' |
(Increase) decrease in other receivables | 698 | 994 |
(Increase) decrease in investments-trading | 3,358 | -736 |
(Increase) decrease in other assets | -278 | -1,503 |
(Increase) decrease in receivables under resale agreement | -6,580 | -31,334 |
Change in receivables from / payables to related parties, net | 82 | -503 |
Increase (decrease) in accrued compensation | -1,450 | -4,910 |
Increase (decrease) in accounts payable and other liabilities | -3,485 | -3,460 |
Increase (decrease) in trading securities sold, not yet purchased, net | 5,235 | 30,195 |
Change in receivables from / payables to brokers, dealers, and clearing agencies, net | -1,857 | -24,742 |
Increase (decrease) in securities sold under agreement to repurchase | 7,981 | 33,170 |
Increase (decrease) in deferred income taxes | ' | -30 |
Net cash provided by (used in) operating activities | 1,160 | -5,281 |
Investing activities | ' | ' |
Cash acquired from acquisition | ' | 679 |
Purchase of other investments, at fair value | -20,843 | -1,064 |
Sales and returns of principal of other investments, at fair value | 3,643 | 708 |
Proceeds from sale of Star Asia and related entities, net | 19,924 | ' |
Investment in equity method affiliates | ' | -10 |
Return from equity method affiliates | 67 | 2,881 |
Purchase of furniture, equipment, and leasehold improvements | -127 | -548 |
Net cash provided by (used in) investing activities | 2,664 | 2,646 |
Financing activities | ' | ' |
Repayment and repurchase of debt | -3,121 | -619 |
Cash used to net share settle equity awards | -79 | -36 |
PrinceRidge non-controlling interest redemptions, net | ' | -317 |
PrinceRidge mandatorily redeemable equity interest repayments | ' | -86 |
IFMI non-controlling interest distributions | -213 | -212 |
IFMI dividends | -657 | -504 |
Net cash used in financing activities | -4,070 | -1,774 |
Effect of exchange rate on cash | 13 | -175 |
Net increase (decrease) in cash and cash equivalents | -233 | -4,584 |
Cash and cash equivalents, beginning of period | 13,161 | 14,500 |
Cash and cash equivalents, end of period | $12,928 | $9,916 |
Organization_And_Nature_Of_Ope
Organization And Nature Of Operations | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization And Nature Of Operations | ' |
1. ORGANIZATION AND NATURE OF OPERATIONS | |
The Formation Transaction | |
Cohen Brothers was formed on October 7, 2004 by Cohen Bros. Financial, LLC (“CBF”). Cohen Brothers was established to acquire the net assets of CBF’s subsidiaries (the “Formation Transaction”): Cohen Bros. & Company, Inc.; Cohen Frères SAS; Dekania Investors, LLC; Emporia Capital Management, LLC; and the majority interest in Cohen Bros. & Toroian Investment Management, Inc. The Formation Transaction was accomplished through a series of transactions occurring between March 4, 2005 and May 31, 2005. | |
The Company | |
From its formation until December 16, 2009, Cohen Brothers operated as a privately owned limited liability company. On December 16, 2009, Cohen Brothers completed its merger (the “Merger”) with a subsidiary of Alesco Financial Inc. (“AFN”) a publicly traded real estate investment trust. | |
As a result of the Merger, AFN contributed substantially all of its assets into Cohen Brothers in exchange for newly issued Cohen Brothers membership units. In addition, AFN received additional Cohen Brothers membership interests directly from its members in exchange for AFN common stock. In accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), the Merger was accounted for as a reverse acquisition, and Cohen Brothers was deemed to be the accounting acquirer. As a result, all of AFN’s assets and liabilities were required to be revalued at fair value as of the acquisition date. The remaining membership interests of Cohen Brothers that are not held by AFN are included as a component of non-controlling interest in the consolidated balance sheet. | |
Subsequent to the Merger, AFN was renamed Cohen & Company Inc. In January 2011, it was renamed again as Institutional Financial Markets, Inc. (“IFMI”). Effective January 1, 2010, the Company ceased to qualify as a real estate investment trust, or a REIT. The Company trades on the NYSE MKT LLC (formerly known as the NYSE Amex LLC) under the ticker symbol “IFMI.” The Company is a financial services company specializing in credit related fixed income investments. As of June 30, 2014, the Company had $4.8 billion in assets under management (“AUM”) of which 99% or $4.7 billion, was in collateralized debt obligations (“CDOs”). | |
In these financial statements, the “Company” refers to IFMI and its subsidiaries on a consolidated basis; “Operating LLC” refers to IFMI LLC (formerly Cohen Brothers), the main operating subsidiary of the Company; “Cohen Brothers” refers to the pre-Merger Cohen Brothers, LLC and its subsidiaries; “AFN” refers to the pre-merger Alesco Financial Inc. and its subsidiaries. When the term “IFMI” is used, it is referring to the parent company itself, Institutional Financial Markets, Inc. “JVB Holdings” refers to JVB Financial Holdings, L.L.C.; “JVB” refers to JVB Financial Group LLC, a broker dealer subsidiary; “CCFL” refers to Cohen & Company Financial Limited (formerly known as EuroDekania Management LTD), a subsidiary regulated by the Financial Conduct Authority (formerly known as Financial Services Authority) in the United Kingdom; “CCPRH” refers to C&Co/PrinceRidge Holdings LP (formerly known as PrinceRidge Holdings LP) and its subsidiaries; “PrinceRidge GP” refers to C&Co/PrinceRidge Partners LLC, (formerly known as PrinceRidge Partners LLC). “PrinceRidge” refers to CCPRH together with PrinceRidge GP; and “CCPR” refers to C&Co/PrinceRidge LLC (formerly known as The PrinceRidge Group LLC), a broker dealer subsidiary. “EuroDekania” refers to EuroDekania (Cayman) Ltd., a Cayman Islands exempted company that is externally managed by CCFL. | |
On January 31, 2014, JVB merged into CCPR. In connection with this merger CCPRH changed its name from C&Co/PrinceRidge Holdings LP to J.V.B. Financial Group Holdings, LP and CCPR changed its name from C&Co/PrinceRidge LLC to J.V.B. Financial Group, LLC. Further, on January 31, 2014, CCPR began to do business under the JVB brand. Therefore, when discussing the operations of CCPR on or subsequent to January 31, 2014, CCPR is referred to it as JVB in this Quarterly Report on Form 10-Q. | |
The Company’s business is organized into the following three business segments: | |
Capital Markets: The Company’s Capital Markets business segment consists primarily of credit-related fixed income securities sales, trading, and financing, as well as new issue placements in corporate and securitized products and advisory services. The Company’s fixed income sales and trading group provides trade execution to corporate investors, institutional investors and other smaller broker-dealers. The Company specializes in a variety of products, including but not limited to: corporate bonds and loans, asset backed securities (“ABS”), mortgage backed securities (“MBS”), commercial mortgage backed securities (“CMBS”), residential mortgage backed securities (“RMBS”), CDOs, collateralized loan obligations (“CLOs”), collateralized bond obligations (“CBOs”), collateralized mortgage obligations (“CMOs”), municipal securities, to-be-announced securities (“TBAs”) contracts, Small Business Administration (“SBA”) loans, U.S. government bonds, U.S. government agency securities, brokered deposits and certificates of deposits (“CDs”) for small banks, hybrid capital of financial institutions including trust preferred securities (“TruPS”), whole loans, and other structured financial instruments. As of June 30, 2014, the Company carried out its capital market activities primarily through its subsidiaries: JVB in the United States and CCFL in Europe. | |
Asset Management: The Company’s Asset Management business segment manages assets within CDOs, permanent capital vehicles, managed accounts, and investment funds (collectively referred to as “Investment Vehicles”). A CDO is a form of secured borrowing. The borrowing is secured by different types of fixed income assets such as corporate or mortgage loans or bonds. The borrowing is in the form of a securitization, which means that the lenders are actually investing in notes backed by the assets. In the event of default, the lenders will have recourse only to the assets securing the loan. The Company’s Asset Management business segment includes its fee-based asset management operations which include ongoing base and incentive management fees. | |
Principal Investing: The Company’s Principal Investing business segment is comprised of investments that it has made using its own capital, excluding investments that the Company makes to support its Capital Market business segment. Historically, the Company generally made principal investments in the entities which it managed. Beginning in the first quarter of 2014, the Company began investing in investments (primarily equity tranches of CLOs) which it does not manage. See note 6. | |
The Company generates its revenue by business segment primarily through the following activities: | |
Capital Markets: | |
• trading activities of the Company, which include execution and brokerage services, securities lending activities, riskless trading activities as well as gains and losses (unrealized and realized) and income and expense earned on securities classified as trading; | |
•new issue and advisory revenue comprised primarily of (i) origination fees for corporate debt issues originated by the Company; (ii) revenue from advisory services; and (iii) new issue revenue associated with arranging and placing the issuance of newly created debt, equity, and hybrid financial instruments; | |
Asset Management: | |
• asset management fees for the Company’s on-going asset management services provided to certain Investment Vehicles, which may include fees both senior and subordinate to the securities in the Investment Vehicle; and | |
•incentive management fees earned based on the performance of the various Investment Vehicles; | |
• income or loss from equity method affiliates; | |
Principal Investing: | |
•gains and losses (unrealized and realized) and income and expense earned on investments classified as other investments, at fair value; and | |
• income or loss from equity method affiliates. | |
Basis_Of_Presentation
Basis Of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis Of Presentation | ' |
2. BASIS OF PRESENTATION | |
The financial statements of the Company included herein were prepared in conformity with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The information furnished includes all adjustments and accruals of a normal recurring nature, which, in the opinion of management, are necessary for a fair presentation of results for the interim month periods. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and six months ended June 30, 2014 and 2013 are not necessarily indicative of the results for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
Capitalized terms used herein without definition have the meanings ascribed to them in the Annual Report on Form 10-K for the year ended December 31, 2013. | |
Certain prior period amounts have been reclassified to conform to the current period presentation. | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Summary Of Significant Accounting Policies | ' |
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
A. Adoption of New Accounting Standards | |
In February 2013, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date, which requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date, as the sum of the following: (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors; and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. Examples of obligations within the scope of this ASU include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The guidance in this ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments in this ASU should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU’s scope that exist at the beginning of the entity’s fiscal year of adoption. An entity may elect to use hindsight for the comparative periods presented in the initial year of adoption (if it changed its accounting as a result of adopting the guidance) and shall disclose that fact. The use of hindsight would allow an entity to recognize, measure, and disclose obligations resulting from joint and several liability arrangements within the scope of this ASU in comparative periods using information available at adoption rather than requiring an entity to make judgments about what information it had in each of the prior periods to measure the obligation. Early adoption is permitted. The Company adopted the provisions of ASU 2013-04 effective January 1, 2014 and the adoption of the provisions did not have an effect on the Company’s consolidated financial position and results of operations. | |
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity, which addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. When a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. For an equity method investment that is a foreign entity, the partial sale guidance in Section 830-30-40 still applies, specifically, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. However, this treatment does not apply to an equity method investment that is not a foreign entity. In those instances, the cumulative translation adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. Additionally, the amendments in this ASU clarify that the sale of an investment in a foreign entity includes both (1) events that result in the loss of a controlling financial interest in a foreign entity (that is, irrespective of any retained investment) and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes referred to as a step acquisition). Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. For public entities, the ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The Company adopted the provisions of ASU 2013-05 effective January 1, 2014, and the adoption of the provisions did not have an effect on the Company’s consolidated financial statements or financial statement disclosures. | |
In June 2013, the FASB issued ASU No. 2013-08, Financial Services-Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements, which changes the approach to the investment company assessment in Topic 946, clarifies the characteristics of an investment company, and provides comprehensive guidance for assessing whether an entity is an investment company. The amendments require an investment company to measure non-controlling ownership interests in other investment companies at fair value rather than using the equity method of accounting. The amendments also require the following additional disclosures: (a) the fact that the entity is an investment company and is applying the guidance in Topic 946, (b) information about changes, if any, in an entity’s status as an investment company, and (c) information about financial support provided or contractually required to be provided by an investment company to any of its investees. The amendments in this ASU are effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company has investments in the equity securities of investment funds and other non-publicly traded entities that have the attributes of investment companies as currently described in FASB ASC 946-15-2. The Company adopted the provisions of this ASU effective January 1, 2014, and the adoption of the provisions did not have an effect on the Company’s consolidated financial position and results of operations. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides guidance on the presentation of unrecognized tax benefits. This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows: to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU is effective prospectively for reporting periods beginning after December 15, 2013, with early adoption permitted. The Company adopted the provisions of this ASU effective January 1, 2014, and the adoption of the provisions did not have an effect on the Company’s consolidated statements. | |
B. Fair Value of Financial Instruments | |
The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments. These determinations were based on available market information and appropriate valuation methodologies. Considerable judgment is required to interpret market data to develop the estimates and, therefore, these estimates may not necessarily be indicative of the amount the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Refer to note 7 for a discussion of the fair value hierarchy with respect to investments-trading, other investments, at fair value and the derivatives held by the Company. | |
Cash and cash equivalents: Cash is carried at historical cost, which is assumed to approximate fair value. The estimated fair value measurement of cash and cash equivalents is classified within level 1 of the valuation hierarchy. | |
Investments-trading: These amounts are carried at fair value. The fair value is based on either quoted market prices of an active exchange, independent broker market quotations, market price quotations from third party pricing services, or valuation models when quotations are not available. See note 7 for disclosures about the categorization of the fair value measurements of investments-trading within the three level fair value hierarchy. | |
Other investments, at fair value: These amounts are carried at fair value. The fair value is based on quoted market prices of an active exchange, independent broker market quotations, or valuation models when quotations are not available. In the case of investments in alternative investment funds, fair value is generally based on the reported net asset value of the underlying fund. See note 7 for disclosures concerning the categorization of the fair value measurements of other investments, at fair value within the three level fair value hierarchy. | |
Receivables under resale agreements: Receivables under resale agreements are carried at their contracted resale price, have short-term maturities, and are repriced frequently or bear market interest rates and, accordingly, these contracts are at amounts that approximate fair value. The estimated fair value measurements of receivables under resale agreements are based on observations of actual market activity and are generally classified within level 2 of the fair value hierarchy. | |
Trading securities sold, not yet purchased: These amounts are carried at fair value. The fair value is based on quoted market prices of an active exchange, independent market quotations, market price quotations from third party pricing services, or valuation models when quotations are not available. See note 7 for disclosures concerning the categorization of the fair value measurements of trading securities sold, not yet purchased within the three level fair value hierarchy. | |
Securities sold under agreement to repurchase: The liabilities for securities sold under agreement to repurchase are carried at their contracted repurchase price, have short-term maturities, and are repriced frequently with amounts normally due in one month or less and, accordingly, these contracts are at amounts that approximate fair value. The estimated fair value measurements of securities sold under agreement to repurchase are based on observations of actual market activity and are generally classified within level 2 of the fair value hierarchy. | |
Debt: These amounts are carried at outstanding principal less unamortized discount. However, a substantial portion of the debt was assumed in the Merger and recorded at fair value as of that date. As of June 30, 2014 and December 31, 2013, the fair value of the Company’s debt was estimated to be $40.5 million and $40.2 million, respectively. The estimated fair value measurements of the debt are generally based on discounted cash flow models prepared by the Company’s management primarily using discount rates for similar instruments issued to companies with similar credit risks to the Company and are generally classified within level 3 of the fair value hierarchy. | |
Derivatives: These amounts are carried at fair value. Derivatives may be included as a component of investments-trading; trading securities sold, not yet purchased; and other investments, at fair value. See notes 7 and 8. The fair value is generally based on quoted market prices on an exchange that is deemed to be active for derivative instruments such as foreign currency forward contracts. For derivative instruments, such as TBAs, the fair value is generally based on market price quotations from third party pricing services. See note 7 for disclosures concerning the categorization of the fair value measurements within the three level fair value hierarchy. | |
C. Recent Accounting Developments | |
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for reporting discontinued operations and requires additional disclosures about discontinued operations. The guidance in this ASU raises the threshold for a disposal to qualify as a discontinued operation and certain other disposals that do not meet the definition of a discontinued operation. Under the new provisions, only disposals representing a strategic shift in operations - that is or will have a major effect on an entity’s operations and financial results should be presented as a discontinued operation. Examples include a disposal of a major line of business, a major geographical area, a major equity method investment, or other major parts of an entity. The new provisions also require new disclosures related to individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following the disposal date and retained equity method investments in a discontinued operation. The provisions of this ASU are effective for annual periods beginning on or after December 15, 2014 and interim periods within that year. The ASU is applied prospectively. Early adoption is permitted but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued. The Company will adopt the provisions of this ASU effective January 1, 2015 and is currently evaluating the new guidance to determine the impact it may have to its consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which replaces existing revenue recognition guidance in Topic 605, Revenue Recognition, replaces certain other industry-specific revenue recognition guidance, specifies the accounting for certain costs to obtain or fulfill a contract with a customer and provides recognition and measurement guidance in relation to sales of non-financial assets. The core principle of this ASU is to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU provides guidance on how to achieve this core principle, including how to identify contracts with customers and separate performance obligations in the contract, how to determine and allocate the transaction price to such performance obligations and how to recognize revenue when a performance obligation has been satisfied. The ASU is effective for annual reporting periods, and interim periods within those reporting periods, beginning after December 15, 2016 with early adoption prohibited. The Company will be required to apply the amendments in this ASU using one of the following two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the ASU; or (ii) retrospective with the cumulative effect of initially applying the ASU recognized at the date of the initial application and providing certain additional disclosures as defined in the ASU. The Company will adopt the provisions of this ASU effective January 1, 2017 and is currently evaluating the new guidance to determine the impact it will have on the Company’s consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860): Repurchase to Maturity Transactions, Repurchase Financings, and Disclosures, which changes the accounting for repurchase-to-maturity transactions which are repurchase agreements where the maturity of the security transferred as collateral matches the maturity of the repurchase agreement. According to the new guidance, all repurchase-to-maturity transactions will be accounted for as secured borrowing transactions in the same way as other repurchase agreements rather than as sales of a financial asset and forward commitment to repurchase. The amendments also change the accounting for repurchase financing arrangements which are transactions involving the transfer of a financial asset to a counterparty executed contemporaneously with a reverse repurchase agreement with the same counterparty. Under the new guidance, all repurchase financings will now be accounted for separately, which will result in secured lending accounting for the reverse repurchase agreement. The guidance also requires new disclosures about transfers that are accounted for as sales in transactions that are economically similar to repurchase agreements and increased transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2014 with early adoption prohibited. An entity will be required to present changes in accounting for all outstanding repurchase-to-maturity transactions and repurchase financing arrangements as a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The disclosures for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The Company will adopt the provisions of this ASU effective January 1, 2015 and is currently evaluating the new guidance to determine the impact it will have on the Company’s consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, which requires a performance target that affects vesting and that could be achieved after the requisite service period be accounted for as a performance condition rather than as a non-vesting condition that affects the grant-date fair value of the award. A reporting entity should apply existing guidance in Topic 718, Compensation-Stock Compensation, as it relates to such awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015 with early adoption permitted using either of two methods: (i) prospective to all awards granted or modified after the effective date; or (ii) retrospective to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter, with the cumulative effective applying this ASU as an adjustment to the opening retained earnings balance as of the beginning of the earliest annual period presented in the financial statements. The Company will adopt the provisions of this ASU effective January 1, 2016 and is currently evaluating the new guidance to determine the impact, if any, that it will have on the Company’s consolidated financial statements. | |
Sale_Of_Star_Asia_And_Related_
Sale Of Star Asia And Related Entities | 6 Months Ended |
Jun. 30, 2014 | |
Sale of Star Asia and Related Entities [Abstract] | ' |
Sale of Star Asia and Related Entities | ' |
4. SALE OF STAR ASIA AND RELATED ENTITIES | |
On February 20, 2014, the Company completed the sale of all of its ownership interests in Star Asia Finance (“Star Asia”), Star Asia Japan Special Situations Fund (“Star Asia Special Situations Fund”), Star Asia Management Ltd. (“Star Asia Manager”), Star Asia Capital Management, LLC (“Star Asia Capital Management”), Star Asia Advisors Ltd. (“SAA Manager”), and Star Asia Partners Ltd. (“SAP GP”) (collectively, the “Star Asia Group”). The Company received an initial upfront payment of $20,043 and will receive contingent payments equal to 15% of certain revenues generated by Star Asia Manager, SAA Manager, SAP GP, Star Asia Capital Management, and certain affiliated entities for a period of at least four years. | |
As a result of the sale of the Star Asia Group, the Company recorded a gain of $78 in the first quarter of 2014 which is included as a component of principal transactions and other income in the consolidated income statement. The Company’s accounting policy is to record contingent payments receivable as income as they are earned. In the future, the Company will record any contingent income as a component of principal transactions and other income. | |
Receivables_From_And_Payables_
Receivables From And Payables To Brokers, Dealers, And Clearing Agencies | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Receivables from and Payables to Brokers, Dealers, and Clearing Agencies [Abstract] | ' | ||||||
Receivables from and Payables to Brokers, Dealers, and Clearing Agencies | ' | ||||||
5. RECEIVABLES FROM AND PAYABLES TO BROKERS, DEALERS, AND CLEARING AGENCIES | |||||||
Amounts receivable from brokers, dealers, and clearing agencies consisted of the following at June 30, 2014 and December 31, 2013, respectively. | |||||||
RECEIVABLES FROM BROKERS, DEALERS AND CLEARING AGENCIES | |||||||
(Dollars in Thousands) | |||||||
30-Jun-14 | 31-Dec-13 | ||||||
Deposits with clearing organizations | $ | 1,348 | $ | 1,428 | |||
Receivable from clearing organizations | 295 | 418 | |||||
Receivables from brokers, dealers, and clearing agencies | $ | 1,643 | $ | 1,846 | |||
Receivable from clearing organizations represents un-invested cash held by the clearing organization, which includes cash proceeds from short sales. | |||||||
Amounts payable to brokers, dealers, and clearing agencies consisted of the following at June 30, 2014 and December 31, 2013, respectively. | |||||||
PAYABLES TO BROKERS, DEALERS AND CLEARING AGENCIES | |||||||
(Dollars in Thousands) | |||||||
30-Jun-14 | 31-Dec-13 | ||||||
Unsettled regular way trades, net | $ | 7,949 | $ | 5,600 | |||
Margin payable | 20,682 | 25,111 | |||||
Payables to brokers, dealers, and clearing agencies | $ | 28,631 | $ | 30,711 | |||
Securities transactions are recorded on the trade date, as if they had settled. The related amounts receivable and payable for unsettled securities transactions are recorded net in receivables from or payables to brokers, dealers, and clearing agencies on the Company’s consolidated balance sheets. Effectively, all of the Company’s trading assets and deposits with clearing organizations serve as collateral for the margin payable. These assets are held by the Company’s clearing broker. The Company incurred interest on margin payable of $172 and $519 for the six months ended June 30, 2014 and 2013, respectively, and $106 and $222 for the three months ended June 30, 2014 and 2013, respectively. | |||||||
Financial_Instruments
Financial Instruments | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Financial Instruments [Abstract] | ' | |||||||||
Financial Instruments | ' | |||||||||
6. FINANCIAL INSTRUMENTS | ||||||||||
Investments—Trading | ||||||||||
The following table provides detail of the investments classified as investments-trading as of the periods indicated: | ||||||||||
INVESTMENTS - TRADING | ||||||||||
(Dollars in Thousands) | ||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||
U.S. government agency MBS and CMOs (1) | $ | 7,112 | $ | 13,520 | ||||||
U.S. government agency debt securities | 42,806 | 32,213 | ||||||||
RMBS | 414 | 1,584 | ||||||||
CMBS | 137 | - | ||||||||
U.S. Treasury securities | 200 | 764 | ||||||||
CLOs | 1,931 | 186 | ||||||||
Other ABS | 541 | 268 | ||||||||
SBA loans | 9,168 | 27,719 | ||||||||
Corporate bonds and redeemable preferred stock | 27,949 | 23,562 | ||||||||
Foreign government bonds | 154 | 88 | ||||||||
Municipal bonds | 16,293 | 16,024 | ||||||||
Exchange traded funds | - | 6 | ||||||||
Certificates of deposit | 7,357 | 1,648 | ||||||||
Equity securities | 65 | 36 | ||||||||
Investments-trading | $ | 114,127 | $ | 117,618 | ||||||
(1)Includes TBAs. See note 8. | ||||||||||
Trading Securities Sold, Not Yet Purchased | ||||||||||
The following table provides detail of the trading securities sold, not yet purchased as of the periods indicated: | ||||||||||
TRADING SECURITIES SOLD, NOT YET PURCHASED | ||||||||||
(Dollars in Thousands) | ||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||
U.S. government agency MBS (1) | $ | 11 | $ | 121 | ||||||
U.S. Treasury securities | 40,514 | 38,066 | ||||||||
Corporate bonds and redeemable preferred stock | 14,189 | 10,679 | ||||||||
Foreign government bonds | - | 26 | ||||||||
Municipal bonds | 25 | 88 | ||||||||
Certificates of deposit | - | 524 | ||||||||
Trading securities sold, not yet purchased | $ | 54,739 | $ | 49,504 | ||||||
(1)Represents TBAs. See note 8. | ||||||||||
The Company tries to manage its exposure to changes in interest rates for the interest rate sensitive securities it holds by entering into offsetting short positions for similar fixed rate securities. | ||||||||||
The Company included the change in unrealized losses in the amount of $1,211 and $168 for the six months ended June 30, 2014 and 2013, respectively, in net trading revenue in the Company’s consolidated statements of operations. | ||||||||||
Other Investments, at fair value | ||||||||||
The following table provides detail of the investments included within other investments, at fair value: | ||||||||||
OTHER INVESTMENTS, AT FAIR VALUE | ||||||||||
(Dollars in Thousands) | ||||||||||
30-Jun-14 | ||||||||||
Cost | Carrying Value | Unrealized Gain(Loss) | ||||||||
CLOs | $ | 18,809 | $ | 18,793 | $ | -16 | ||||
CDOs | 217 | 39 | -178 | |||||||
Equity Securities: | ||||||||||
EuroDekania | 7,432 | 4,290 | -3,142 | |||||||
Tiptree Financial Partners, L.P. ("Tiptree") | 5,561 | 2,705 | -2,856 | |||||||
Other securities | 176 | 32 | -144 | |||||||
Total equity securities | 13,169 | 7,027 | -6,142 | |||||||
Residential loans | 138 | 587 | 449 | |||||||
Other investments, at fair value | $ | 32,333 | $ | 26,446 | $ | -5,887 | ||||
31-Dec-13 | ||||||||||
Cost | Carrying Value | Unrealized Gain(Loss) | ||||||||
CDOs | $ | 217 | $ | 35 | $ | -182 | ||||
Equity Securities: | ||||||||||
EuroDekania | 8,778 | 4,192 | -4,586 | |||||||
Star Asia (1) | 23,304 | 17,104 | -6,200 | |||||||
Star Asia Special Situations Fund (1) | 1,933 | 2,747 | 814 | |||||||
Tiptree | 5,561 | 2,282 | -3,279 | |||||||
Other securities | 176 | 33 | -143 | |||||||
Total equity securities | 39,752 | 26,358 | -13,394 | |||||||
Residential loans | 154 | 294 | 140 | |||||||
Foreign currency forward contracts | - | 190 | 190 | |||||||
Other investments, at fair value | $ | 40,123 | $ | 26,877 | $ | -13,246 | ||||
(1) On February 20, 2014, the Company completed the sale of the Company's ownership interests in the Star Asia Group. See note 4. | ||||||||||
Fair_Value_Disclosures
Fair Value Disclosures | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||||||||||||||
7. FAIR VALUE DISCLOSURES | |||||||||||||||||||||||||||||
Fair Value Option | |||||||||||||||||||||||||||||
The Company has elected to account for certain of its other financial assets at fair value under the fair value option provisions of FASB ASC 825, Financial Instruments (“FASB ASC 825”). The primary reason for electing the fair value option when it first became available in 2008, was to reduce the burden of monitoring the differences between the cost and the fair value of the Company’s investments, previously classified as available for sale securities, including the assessment as to whether the declines are temporary in nature and to further remove an element of management judgment. In addition, the election was made for certain investments that were previously required to be accounted for under the equity method because their fair value measurements were readily obtainable. | |||||||||||||||||||||||||||||
Such financial assets accounted for at fair value include: | |||||||||||||||||||||||||||||
•in general, securities that would otherwise qualify for available for sale treatment; | |||||||||||||||||||||||||||||
• in general, investments in equity method affiliates where the affiliate has all of the attributes in FASB ASC 946-10-15-2 (commonly referred to as investment companies); and | |||||||||||||||||||||||||||||
• in general, investments in residential loans. | |||||||||||||||||||||||||||||
The changes in fair value (realized and unrealized gains and losses) of these instruments for which the Company has elected the fair value option are recorded in principal transactions and other income in the consolidated statements of operations. All of the investments for which the Company has elected the fair value option are included as a component of other investments, at fair value in the consolidated balance sheets. The Company recognized net gains (losses) of $1,916 and $ (9,993) related to changes in fair value of investments that are included as a component of other investments, at fair value during the six months ended June 30, 2014 and 2013, respectively. The Company recognized net gains (losses) of $1,010 and $ (4,595) related to changes in fair value of investments that are included as a component of other investments, at fair value during the three months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
In accordance with FASB ASC 820, Fair Value Measurements and Disclosures (“FASB ASC 820”), the Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into a three level fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the hierarchy under FASB ASC 820 are described below: | |||||||||||||||||||||||||||||
Level 1Financial assets and liabilities whose values are based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||||||||||||||||||||||
Level 2Financial assets and liabilities whose values are based on one or more of the following: | |||||||||||||||||||||||||||||
1. Quoted prices for similar assets or liabilities in active markets; | |||||||||||||||||||||||||||||
2. Quoted prices for identical or similar assets or liabilities in non-active markets; | |||||||||||||||||||||||||||||
3. Pricing models whose inputs, other than quoted prices, are observable for substantially the full term of the asset or liability; or | |||||||||||||||||||||||||||||
4. Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. | |||||||||||||||||||||||||||||
Level 3Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. | |||||||||||||||||||||||||||||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |||||||||||||||||||||||||||||
Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the level 3 category presented in the tables below may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. | |||||||||||||||||||||||||||||
A review of the fair value hierarchy classifications is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain financial assets or liabilities. There were no transfers between level 1 and level 2 of the fair value hierarchy during the three and six months ended June 30, 2014 and 2013. Reclassifications impacting level 3 of the fair value hierarchy are reported as transfers in or transfers out of the level 3 category as of the beginning of the quarter in which reclassifications occur. | |||||||||||||||||||||||||||||
The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. | |||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS ON A RECURRING BASIS | |||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Significant | Significant | ||||||||||||||||||||||||||||
Quoted Prices in | Other Observable | Unobservable | |||||||||||||||||||||||||||
Active Markets | Inputs | Inputs | |||||||||||||||||||||||||||
Assets: | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Investments-trading: | |||||||||||||||||||||||||||||
U.S. government agency MBS and CMOs | $ | 7,112 | $ | - | $ | 7,112 | $ | - | |||||||||||||||||||||
U.S. government agency debt securities | 42,806 | - | 42,806 | - | |||||||||||||||||||||||||
RMBS | 414 | - | 414 | - | |||||||||||||||||||||||||
CMBS | 137 | - | 137 | - | |||||||||||||||||||||||||
U.S. Treasury securities | 200 | 200 | - | - | |||||||||||||||||||||||||
CLOs | 1,931 | - | 1,931 | - | |||||||||||||||||||||||||
Other ABS | 541 | - | 541 | - | |||||||||||||||||||||||||
SBA loans | 9,168 | - | 9,168 | - | |||||||||||||||||||||||||
Corporate bonds and redeemable preferred stock | 27,949 | - | 27,949 | - | |||||||||||||||||||||||||
Foreign government bonds | 154 | - | 154 | - | |||||||||||||||||||||||||
Municipal bonds | 16,293 | - | 16,293 | - | |||||||||||||||||||||||||
Certificates of deposit | 7,357 | - | 7,357 | - | |||||||||||||||||||||||||
Equity securities | 65 | 55 | 10 | - | |||||||||||||||||||||||||
Total investments - trading | $ | 114,127 | $ | 255 | $ | 113,872 | $ | - | |||||||||||||||||||||
Other investments, at fair value | |||||||||||||||||||||||||||||
EuroDekania (1) | $ | 4,290 | $ | - | $ | - | $ | 4,290 | |||||||||||||||||||||
Tiptree (2) | 2,705 | - | 2,705 | - | |||||||||||||||||||||||||
Other equity securities | 32 | 23 | 9 | - | |||||||||||||||||||||||||
CLOs | 18,793 | - | - | 18,793 | |||||||||||||||||||||||||
CDOs | 39 | - | - | 39 | |||||||||||||||||||||||||
Residential loans | 587 | - | 587 | - | |||||||||||||||||||||||||
Total other investments, at fair value | $ | 26,446 | $ | 23 | $ | 3,301 | $ | 23,122 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Trading securities sold, not yet purchased: | |||||||||||||||||||||||||||||
U.S. government agency MBS | $ | 11 | $ | - | $ | 11 | $ | - | |||||||||||||||||||||
U.S. Treasury securities | 40,514 | 40,514 | - | - | |||||||||||||||||||||||||
Corporate bonds and redeemable preferred stock | 14,189 | - | 14,189 | - | |||||||||||||||||||||||||
Municipal bonds | 25 | - | 25 | - | |||||||||||||||||||||||||
Total trading securities sold, not yet purchased | $ | 54,739 | $ | 40,514 | $ | 14,225 | $ | - | |||||||||||||||||||||
(1)Hybrid Securities Fund—European. | |||||||||||||||||||||||||||||
(2)Diversified Holding Company. | |||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS ON A RECURRING BASIS | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Significant | Significant | ||||||||||||||||||||||||||||
Quoted Prices in | Other Observable | Unobservable | |||||||||||||||||||||||||||
Active Markets | Inputs | Inputs | |||||||||||||||||||||||||||
Assets: | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Investments-trading: | |||||||||||||||||||||||||||||
U.S. government agency MBS and CMOs | $ | 13,520 | $ | - | $ | 13,520 | $ | - | |||||||||||||||||||||
U.S. government agency debt securities | 32,213 | 45 | 32,168 | - | |||||||||||||||||||||||||
RMBS | 1,584 | - | 1,584 | - | |||||||||||||||||||||||||
U.S. Treasury securities | 764 | 764 | - | - | |||||||||||||||||||||||||
CLOs | 186 | - | - | 186 | |||||||||||||||||||||||||
Other ABS | 268 | - | 268 | - | |||||||||||||||||||||||||
SBA loans | 27,719 | - | 27,719 | - | |||||||||||||||||||||||||
Corporate bonds and redeemable preferred stock | 23,562 | 2,973 | 20,589 | - | |||||||||||||||||||||||||
Foreign government bonds | 88 | - | 88 | - | |||||||||||||||||||||||||
Municipal bonds | 16,024 | - | 16,024 | - | |||||||||||||||||||||||||
Exchange traded funds | 6 | 6 | - | - | |||||||||||||||||||||||||
Certificates of deposit | 1,648 | - | 1,648 | - | |||||||||||||||||||||||||
Equity securities | 36 | 16 | 20 | - | |||||||||||||||||||||||||
Total investments - trading | $ | 117,618 | $ | 3,804 | $ | 113,628 | $ | 186 | |||||||||||||||||||||
Other investments, at fair value | |||||||||||||||||||||||||||||
EuroDekania (1) | $ | 4,192 | $ | - | $ | - | $ | 4,192 | |||||||||||||||||||||
Star Asia (2) | 17,104 | - | - | 17,104 | |||||||||||||||||||||||||
Tiptree (3) | 2,282 | - | 2,282 | - | |||||||||||||||||||||||||
Star Asia Special Situations Fund (2) | 2,747 | - | - | 2,747 | |||||||||||||||||||||||||
Other equity securities | 33 | 23 | 10 | - | |||||||||||||||||||||||||
CDOs | 35 | - | - | 35 | |||||||||||||||||||||||||
Residential loans | 294 | - | 294 | - | |||||||||||||||||||||||||
Foreign currency forward contracts | 190 | 190 | - | - | |||||||||||||||||||||||||
Total other investments, at fair value | $ | 26,877 | $ | 213 | $ | 2,586 | $ | 24,078 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Trading securities sold, not yet purchased: | |||||||||||||||||||||||||||||
U.S. government agency MBS | $ | 121 | $ | - | $ | 121 | $ | - | |||||||||||||||||||||
U.S. Treasury securities | 38,066 | 38,066 | - | - | |||||||||||||||||||||||||
Corporate bonds and redeemable preferred stock | 10,679 | - | 10,679 | - | |||||||||||||||||||||||||
Foreign government bonds | 26 | - | 26 | - | |||||||||||||||||||||||||
Municipal bonds | 88 | - | 88 | - | |||||||||||||||||||||||||
Certificates of deposit | 524 | - | 524 | - | |||||||||||||||||||||||||
Total trading securities sold, not yet purchased | $ | 49,504 | $ | 38,066 | $ | 11,438 | $ | - | |||||||||||||||||||||
(1)Hybrid Securities Fund—European. | |||||||||||||||||||||||||||||
(2)Real Estate Fund—Asian. | |||||||||||||||||||||||||||||
(3)Diversified Holding Company. | |||||||||||||||||||||||||||||
The following provides a brief description of the types of financial instruments the Company holds, the methodology for estimating fair value, and the level within the hierarchy of the estimate. The discussion that follows applies regardless of whether the instrument is included in investments-trading; other investments, at fair value; or trading securities sold, not yet purchased. | |||||||||||||||||||||||||||||
U.S. Government Agency MBS and CMOs: These are securities that are generally traded over-the-counter. The Company generally values these securities using third party quotations such as unadjusted broker-dealer quoted prices or market price quotations from third party pricing services. These valuations are based on a market approach. This is considered a level 2 valuation in the hierarchy. | |||||||||||||||||||||||||||||
U.S. Government Agency Debt Securities: Callable and non-callable U.S. government agency debt securities are measured primarily based on quoted market prices obtained from third party pricing services. Non-callable U.S. government agency debt securities are generally classified within level 1 and callable U.S. government agency debt securities are classified within level 2 of the valuation hierarchy. | |||||||||||||||||||||||||||||
RMBS and CMBS: The Company generally values these securities using third party quotations such as unadjusted broker-dealer quoted prices or market price quotations from third party pricing services. These valuations are based on a market approach. The Company generally classifies the fair value of these securities based on third party quotations within level 2 of the valuation hierarchy. | |||||||||||||||||||||||||||||
U.S. Treasury Securities: U.S. Treasury securities include U.S. Treasury bonds and notes and the fair values of the U.S. Treasury securities are based on quoted prices in active markets. Valuation adjustments are not applied. The Company classifies the fair value of these securities within level 1 of the valuation hierarchy. | |||||||||||||||||||||||||||||
CLOs, CDOs and ABS: CLOs, CDOs, and ABS are interests in securitizations. ABS may include, but are not limited to, securities backed by auto loans, credit card receivables, or student loans. Where the Company is able to obtain independent market quotations from at least two broker-dealers and where a price within the range of at least two broker-dealers is used or market price quotations from third party pricing services is used, these interests in securitizations will generally be classified as level 2 of the valuation hierarchy. These valuations are based on a market approach. The independent market quotations from broker-dealers are generally nonbinding. The Company seeks quotations from broker-dealers that historically have actively traded, monitored, issued, and been knowledgeable about the interests in securitizations. The Company generally believes that to the extent that it (1) receives two quotations in a similar range from broker-dealers knowledgeable about these interests in securitizations, and (2) believes the broker-dealers gather and utilize observable market information such as new issue activity in the primary market, trading activity in the secondary market, credit spreads versus historical levels, bid-ask spreads, and price consensus among market participants and sources, then classification as level 2 of the valuation hierarchy is appropriate. In the absence of two broker-dealer market quotations, a single broker-dealer market quotation may be used without corroboration of the quote in which case the Company generally classifies the fair value within level 3 of the valuation hierarchy. | |||||||||||||||||||||||||||||
If quotations are unavailable, prices observed by the Company for recently executed market transactions may be used or valuation models prepared by the Company’s management may be used, which are based on an income approach. These models prepared by the Company’s management include estimates and the valuations derived from them could differ materially from amounts realizable in an open market exchange. Each CLO and CDO position is evaluated independently taking into consideration available comparable market levels, underlying collateral performance and pricing, deal structures, and liquidity. Fair values based on internal valuation models prepared by the Company’s management are generally classified within level 3 of the valuation hierarchy. | |||||||||||||||||||||||||||||
Establishing fair value is inherently subjective (given the volatile and sometimes illiquid markets for certain interests in securitizations) and requires management to make a number of assumptions, including assumptions about the future of interest rates, discount rates and the timing of cash flows. The assumptions the Company applies are specific to each security. Although the Company may rely on internal calculations to compute the fair value of certain interest in securitizations, the Company requests and considers indications of fair value from third party pricing services to assist in the valuation process. | |||||||||||||||||||||||||||||
SBA Loans: SBA loans include loans and SBA interest only strips. In the case of loans, the Company generally values these securities using third party quotations such as unadjusted broker-dealer quoted prices, internal valuation models using observable inputs, or market price quotations from third party pricing services. The Company generally classifies these investments within level 2 of the valuation hierarchy. These valuations are based on a market approach. SBA interest only strips do not trade in an active market with readily available prices. Accordingly, the Company generally uses valuation models to determine fair value and classifies the fair value of the SBA interest only strips within level 3 of the valuation hierarchy. | |||||||||||||||||||||||||||||
Corporate Bonds, Redeemable Preferred Stock, and Foreign Government Bonds: The Company uses recently executed transactions or third party quotations from independent pricing services to arrive at the fair value of its investments in corporate bonds, redeemable preferred stock, and foreign government bonds. These valuations are based on a market approach. The Company generally classifies the fair value of these bonds within level 2 of the valuation hierarchy. In instances where the fair values of securities are based on quoted prices in active markets (for example with redeemable preferred stock), the Company classifies the fair value of these securities within level 1 of the valuation hierarchy. | |||||||||||||||||||||||||||||
Municipal Bonds: Municipal bonds, which include obligations of U.S. states, municipalities, and political subdivisions, primarily include bonds or notes issued by U.S. municipalities. The Company generally values these securities using third party quotations such as market price quotations from third party pricing services. The Company generally classifies the fair value of these bonds within level 2 of the valuation hierarchy. The valuations are based on a market approach. In instances where the Company is unable to obtain reliable market price quotations from third party pricing services, the Company will use its own internal valuation models. In these cases, the Company will classify such securities as level 3 within the hierarchy until it is able to obtain third party pricing. | |||||||||||||||||||||||||||||
Exchange Traded Funds: Exchange traded funds are investment funds that trade in active markets, similar to public company stocks. The fair values of exchange traded funds are based on quoted prices in active markets. Valuation adjustments are not applied. The Company classifies the fair value of these securities within level 1 of the valuation hierarchy. | |||||||||||||||||||||||||||||
Equity Securities : The fair value of equity securities that represent investments in publicly traded companies (common or preferred shares, options, warrants, and other equity investments) are determined using the closing price of the security as of the reporting date. These are securities which are traded on a recognized liquid exchange. This is considered a level 1 value in the valuation hierarchy. | |||||||||||||||||||||||||||||
In some cases, the Company has owned options or warrants in newly publicly traded companies when the option or warrant itself is not publicly traded. In those cases, the Company used an internal valuation model and classified the investment within level 3 of the valuation hierarchy. The non-exchange traded equity options and warrants were measured using the Black-Scholes model with key inputs impacting the valuation including the underlying security price, implied volatility, dividend yield, interest rate curve, strike price, and maturity date. Once the securities underlying the options or warrants (not the options or warrants themselves) have quoted prices available in an active market, the Company attributes a value to the warrants using the Black-Scholes model based on the respective price of the options or warrants and the quoted prices of the securities underlying the options or warrants and key observable inputs. In this case, the Company will generally classify the options or warrants as level 2 within the valuation hierarchy because the inputs to the valuation model are now observable. If the option or warrant itself begins to trade on a liquid exchange, the Company will discontinue using a valuation model and will begin to use the public exchange price at which point it will be classified as level 1 in the valuation hierarchy. | |||||||||||||||||||||||||||||
Other equity securities represent investments in investment funds and other non-publicly traded entities. Substantially all of these other entities have the attributes of investment companies as described in FASB ASC 946-15-2. The Company estimates the fair value of these entities using the reported net asset value per share as of the reporting date in accordance with the “practical expedient” provisions related to investments in certain entities that calculate net asset value per share (or its equivalent) included in FASB ASC 820 for all entities except Star Asia. The Company generally classifies these estimates within either level 2 of the valuation hierarchy if its investment in the entity is currently redeemable or level 3 if its investment is not currently redeemable. | |||||||||||||||||||||||||||||
As described in more detail in note 4, the Company sold its investment in Star Asia Special Situations Fund on February 20, 2014 along with its investment in Star Asia and certain other related entities. According to ASC 820, when a sale is considered probable as of the measurement date at an amount other than the underlying net asset value (“NAV”) per share, the reporting entity should not use the practical expedient in determining fair value. Therefore, the Company determined the fair value of its investment in Star Asia Special Situations Fund as of December 31, 2013 by utilizing a valuation model that took into account the terms and conditions of the sale in February 2014. | |||||||||||||||||||||||||||||
Prior to the second quarter of 2013, the Company carried its investment in Tiptree based on the underlying net asset value per share of the fund in accordance with the “practical expedient” provisions discussed above and the Company classified the fair value estimate within level 3 of the valuation hierarchy. Beginning with the second quarter of 2013, the Company changed the way it calculates the fair value of its investment in Tiptree. During the second quarter of 2013, Tiptree completed a reorganization. As a result of that reorganization, the Company’s investment in Tiptree can be exchanged into shares of Tiptree Financial, Inc. based on a stated exchange ratio (which is generally fixed, but can be adjusted for certain events, such as stock dividends or stock splits). Tiptree Financial, Inc. is publicly traded over the counter. Therefore, beginning with the second quarter of 2013, the Company calculated the fair value of its investment in Tiptree by using the closing over the counter price for Tiptree Financial, Inc. and adjusting for the exchange ratio. Based on this pricing methodology, the Company began classifying the fair value of its investment in Tiptree as level 2 within the valuation hierarchy during the second quarter of 2013. | |||||||||||||||||||||||||||||
In the case of Star Asia, prior to December 31, 2013, the Company utilized a valuation model to determine fair value, which uses a market approach and generally classifies its investment within level 3 of the valuation hierarchy. Star Asia accounted for itself as an investment company as described in ASC 946, Financial Services—Investment Companies. As an investment company, Star Asia carries its assets at fair value and reports NAV per share to its investors. However, Star Asia issued subordinated debt securities in 2009 at a significant discount to par. Upon issuance, Star Asia did not elect the fair value option for these liabilities and was not required to do so under ASC 946. Over time, it was the Company’s assessment that the fair value of the subordinated debt securities had diverged from its carrying value. Because Star Asia’s published NAV was calculated using the amortized cost of these subordinated debt securities, the Company had concluded it would be appropriate to adjust Star Asia’s reported NAV to recalculate it as if Star Asia’s subordinated debt were recorded at fair value as opposed to its historical amortized cost. The Company estimated the fair value of Star Asia’s subordinated debt securities by projecting the remaining debt cash outflows and discounting them at an estimated market rate as of the reporting date, which was derived from similar non-investment grade long term subordinated debt issuances. | |||||||||||||||||||||||||||||
As described in more detail in note 4, the Company sold its investment in Star Asia on February 20, 2014 along with its investment in Star Asia Special Situations Fund and certain other related entities. Therefore, the Company determined the fair value of its investment in Star Asia as of December 31, 2013 by utilizing a valuation model that took into account the terms and conditions of the sale on February 20, 2014, as opposed to the valuation model described in the immediately preceding paragraph (which was used historically by the Company). | |||||||||||||||||||||||||||||
Residential Loans: Management utilizes home price indices to value the residential loans. Adjustments to the index imply a level 3 valuation. The methodology using an unadjusted index, which is considered an observable input, implies a level 2 valuation. | |||||||||||||||||||||||||||||
Certificates of Deposit: The fair value of certificates of deposit is estimated using valuations provided by third party pricing services. Certificates of deposit are generally categorized in level 2 of the valuation hierarchy. | |||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||||||||||||||
Foreign currency forward contracts are exchange-traded derivatives which transact on an exchange that is deemed to be active. The fair value of the foreign currency forward contracts is based on current quoted market prices. Valuation adjustments are not applied. These are considered a level 1 value in the hierarchy. See note 8. | |||||||||||||||||||||||||||||
TBAs | |||||||||||||||||||||||||||||
The Company generally values these securities using third party quotations such as unadjusted broker-dealer quoted prices or market price quotations from third party pricing services. TBAs are generally classified within level 2 of the fair value hierarchy. If there is limited transaction activity or less transparency to observe market based inputs to valuation models, TBAs are classified in level 3 of the fair value hierarchy. U.S. government agency MBS and CMOs include TBAs. Unrealized gains on TBAs are included in investments-trading on the Company’s consolidated balance sheets and unrealized losses on TBAs are included in trading securities sold, not yet purchased on the Company’s consolidated balance sheets. See note 8. | |||||||||||||||||||||||||||||
Level 3 Financial Assets and Liabilities | |||||||||||||||||||||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||
The following table presents additional information about assets and liabilities measured at fair value on a recurring basis and for which the Company has utilized level 3 inputs to determine fair value. | |||||||||||||||||||||||||||||
LEVEL 3 INPUTS | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
31-Dec-13 | Net trading | Gains and losses (5) | Transfers out of Level 3 | Accretion of income ( 5) | Purchases | Sales and returns of capital | 30-Jun-14 | Change in unrealized gains /(losses) (1) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investments-trading | |||||||||||||||||||||||||||||
CLOs (2) | $ | 186 | $ | -3 | $ | - | $ | - | $ | - | $ | - | $ | -183 | $ | - | $ | - | |||||||||||
Total investments-trading | $ | 186 | $ | -3 | $ | - | $ | - | $ | - | $ | - | $ | -183 | $ | - | $ | - | |||||||||||
Other investments, at fair value: | |||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||
EuroDekania (3) | $ | 4,192 | $ | - | $ | 1,444 | $ | - | $ | - | $ | - | $ | -1,346 | $ | 4,290 | $ | 1,444 | |||||||||||
Star Asia (4) | 17,104 | - | 78 | - | - | - | -17,182 | - | - | ||||||||||||||||||||
Star Asia Japan Special Situations Fund (4) | 2,747 | - | - | - | - | - | -2,747 | - | - | ||||||||||||||||||||
Total equity securities | 24,043 | - | 1,522 | - | - | - | -21,275 | 4,290 | 1,444 | ||||||||||||||||||||
CLOs (2) | - | - | 6 | - | 249 | 20,819 | -2,281 | 18,793 | -16 | ||||||||||||||||||||
CDOs | 35 | - | 4 | - | - | - | - | 39 | 4 | ||||||||||||||||||||
Total other investments, fair value | $ | 24,078 | $ | - | $ | 1,532 | $ | - | $ | 249 | $ | 20,819 | $ | -23,556 | $ | 23,122 | $ | 1,432 | |||||||||||
(1)Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period. | |||||||||||||||||||||||||||||
(2)Sales in investments-trading include $133 of an investment in a CLO that was reclassified from investments-trading to other investments, at fair value, which is included in purchases in other investments, at fair value as of June 30, 2014. | |||||||||||||||||||||||||||||
(3)Hybrid Securities Funds—European. | |||||||||||||||||||||||||||||
(4)Real Estate Funds—Asian. | |||||||||||||||||||||||||||||
(5) Recorded as a component of principal transactions and other income in the consolidated statement of operations. | |||||||||||||||||||||||||||||
LEVEL 3 INPUTS | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
31-Dec-12 | Net trading | Gains and losses (5) | Transfers out of Level 3 | Accretion of income (5) | Purchases | Sales and returns of capital | 30-Jun-13 | Change in unrealized gains /(losses) (1) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investments-trading | |||||||||||||||||||||||||||||
CLOs | $ | 295 | $ | 36 | $ | - | $ | - | $ | - | $ | - | $ | -110 | $ | 221 | $ | -74 | |||||||||||
Total investments-trading | $ | 295 | $ | 36 | $ | - | $ | - | $ | - | $ | - | $ | -110 | $ | 221 | $ | -74 | |||||||||||
Other investments, at fair value: | |||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||
EuroDekania (2) | $ | 2,054 | $ | - | $ | -14 | $ | - | $ | - | $ | - | $ | - | $ | 2,040 | $ | -14 | |||||||||||
Star Asia (3) | 30,169 | - | -9,234 | - | - | - | - | 20,935 | -9,234 | ||||||||||||||||||||
Tiptree (4) | 2,834 | - | - | -2,834 | - | - | - | - | - | ||||||||||||||||||||
Star Asia Special Situations Fund (3) | 2,503 | - | -30 | - | - | 302 | - | 2,775 | -30 | ||||||||||||||||||||
Total equity securities | 37,560 | - | -9,278 | -2,834 | - | 302 | - | 25,750 | -9,278 | ||||||||||||||||||||
CDOs | 77 | - | -19 | - | - | - | - | 58 | -19 | ||||||||||||||||||||
Total other investments, fair value | $ | 37,637 | $ | - | $ | -9,297 | $ | -2,834 | $ | - | $ | 302 | $ | - | $ | 25,808 | $ | -9,297 | |||||||||||
(1) Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period. | |||||||||||||||||||||||||||||
(2)Hybrid Securities Funds—European. | |||||||||||||||||||||||||||||
(3)Real Estate Funds—Asian. | |||||||||||||||||||||||||||||
(4)Diversified Holding Company. | |||||||||||||||||||||||||||||
(5) Recorded as a component of principal transactions and other income in the consolidated statement of operations. | |||||||||||||||||||||||||||||
LEVEL 3 INPUTS | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
31-Mar-14 | Net trading | Gains and losses (4) | Transfers out of Level 3 | Accretion of income (4) | Purchases | Sales and returns of capital | 30-Jun-14 | Change in unrealized gains /(losses) (1) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investments-trading | |||||||||||||||||||||||||||||
CLOs (2) | $ | 134 | $ | 19 | $ | - | $ | - | $ | - | $ | - | $ | -153 | $ | - | $ | - | |||||||||||
Total investments-trading | $ | 134 | $ | 19 | $ | - | $ | - | $ | - | $ | - | $ | -153 | $ | - | $ | - | |||||||||||
Other investments, at fair value: | |||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||
EuroDekania (3) | $ | 3,997 | $ | - | $ | 313 | $ | - | $ | - | $ | - | $ | -20 | $ | 4,290 | $ | 313 | |||||||||||
Total equity securities | 3,997 | - | 313 | - | - | - | -20 | 4,290 | 313 | ||||||||||||||||||||
CLOs (2) | 7,109 | - | 6 | - | 205 | 13,754 | -2,281 | 18,793 | -16 | ||||||||||||||||||||
CDOs | 25 | - | 14 | - | - | - | - | 39 | 14 | ||||||||||||||||||||
Total other investments, fair value | $ | 11,131 | $ | - | $ | 333 | $ | - | $ | 205 | $ | 13,754 | $ | -2,301 | $ | 23,122 | $ | 311 | |||||||||||
(1)Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period. | |||||||||||||||||||||||||||||
(2)Sales in investments-trading include $133 of an investment in a CLO that was reclassified from investments-trading to other investments, at fair value, which is included in purchases in other investments, at fair value as of June 30, 2014. | |||||||||||||||||||||||||||||
(3)Hybrid Securities Funds—European. | |||||||||||||||||||||||||||||
(4) Recorded as a component of principal transactions and other income in the consolidated statement of operations. | |||||||||||||||||||||||||||||
LEVEL 3 INPUTS | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
31-Mar-13 | Net trading | Gains and losses (5) | Transfers out of Level 3 | Accretion of income (5) | Purchases | Sales and returns of capital | 30-Jun-13 | Change in unrealized gains /(losses) (1) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investments-trading | |||||||||||||||||||||||||||||
CLOs | $ | 259 | $ | 72 | $ | - | $ | - | $ | - | $ | - | $ | -110 | $ | 221 | $ | -38 | |||||||||||
Total investments-trading | $ | 259 | $ | 72 | $ | - | $ | - | $ | - | $ | - | $ | -110 | $ | 221 | $ | -38 | |||||||||||
Other investments, at fair value: | |||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||
EuroDekania (2) | $ | 2,394 | $ | - | $ | -354 | $ | - | $ | - | $ | - | $ | - | $ | 2,040 | $ | -354 | |||||||||||
Star Asia (3) | 24,136 | - | -3,201 | - | - | - | - | 20,935 | -3,201 | ||||||||||||||||||||
Tiptree (4) | 2,834 | - | - | -2,834 | - | - | - | - | - | ||||||||||||||||||||
Star Asia Special Situations Fund (3) | 2,848 | - | -73 | - | - | - | - | 2,775 | -73 | ||||||||||||||||||||
Total equity securities | 32,212 | - | -3,628 | -2,834 | - | - | - | 25,750 | -3,628 | ||||||||||||||||||||
CDOs | 82 | - | -24 | - | - | - | - | 58 | -24 | ||||||||||||||||||||
Total other investments, fair value | $ | 32,294 | $ | - | $ | -3,652 | $ | -2,834 | $ | - | $ | - | $ | - | $ | 25,808 | $ | -3,652 | |||||||||||
(1)Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period. | |||||||||||||||||||||||||||||
(2)Hybrid Securities Funds—European. | |||||||||||||||||||||||||||||
(3)Real Estate Funds—Asian. | |||||||||||||||||||||||||||||
(4)Diversified Holding Company. | |||||||||||||||||||||||||||||
(5) Recorded as a component of principal transactions and other income in the consolidated statement of operations. | |||||||||||||||||||||||||||||
The circumstances that would result in transferring certain financial instruments from level 2 to level 3 of the valuation hierarchy would typically include what the Company believes to be a decrease in the availability, utility, and reliability of observable market information such as new issue activity in the primary market, trading activity in the secondary market, credit spreads versus historical levels, bid-ask spreads, and price consensus among market participants and sources. | |||||||||||||||||||||||||||||
Investments-trading: During the six and three months ended June 30, 2014, there were no transfers into or out of level 3 of the valuation hierarchy. During the six and three months ended June 30, 2013, there were no transfers into or out of level 3 of the valuation hierarchy. | |||||||||||||||||||||||||||||
Other investments, at fair value: During the six and three months ended June 30, 2014, there were no transfers into or out of level 3 of the valuation hierarchy. During the six and three months ended June 30, 2013, the Company transferred $2,834 of its investment in Tiptree from level 3 to level 2 of the valuation hierarchy.. | |||||||||||||||||||||||||||||
The following tables provide the quantitative information about level 3 fair value measurements as of June 30, 2014 and December 31, 2013, respectively: | |||||||||||||||||||||||||||||
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Significant | Range of | ||||||||||||||||||||||||||||
Fair Value | Valuation | Unobservable | Weighted | Significant | |||||||||||||||||||||||||
30-Jun-14 | Technique | Inputs | Average | Inputs | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Other investments, at fair value | |||||||||||||||||||||||||||||
CLOs | $ | 18,793 | Discounted Cash Flow Model | Yield | 11.1% | 9.7% - 12.7% | |||||||||||||||||||||||
Duration (years) | 4.5 | 3.5 - 5.0 | |||||||||||||||||||||||||||
Default rate | 1.0% | 1.0% - 3.5% | |||||||||||||||||||||||||||
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Significant | Range of | ||||||||||||||||||||||||||||
Fair Value | Valuation | Unobservable | Weighted | Significant | |||||||||||||||||||||||||
31-Dec-13 | Technique | Inputs | Average | Inputs | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Other investments, at fair value | |||||||||||||||||||||||||||||
Star Asia | $ | 17,104 | Allocated sale price | Relative fair value of assets sold | 77.3% | 74.9% - 79.1% | |||||||||||||||||||||||
Star Asia Special Situations Fund | $ | 2,747 | Allocated sale price | Relative fair value of assets sold | 12.4% | 12.0% - 12.7% | |||||||||||||||||||||||
Sensitivity of Fair Value to Changes in Significant Unobservable Inputs | |||||||||||||||||||||||||||||
For recurring fair value measurements categorized within level 3 of the fair value hierarchy, the sensitivity of the fair value measurement to changes in significant unobservable inputs and interrelationships between those unobservable inputs (if any) are described below: | |||||||||||||||||||||||||||||
" | CLOs | ||||||||||||||||||||||||||||
With respect to the fair value measurement of CLOs for which the Company uses a discounted cash flow model, changes in yield, duration, and default rate would impact the fair value measurement. | |||||||||||||||||||||||||||||
•Equity investments in investment funds and other non-publicly traded entities. | |||||||||||||||||||||||||||||
With respect to the fair value measurement of investment funds and other non-publicly traded entities for which the Company uses the underlying net asset value per share to determine the fair value of the Company’s respective investment, a significant increase (decrease) in the net asset value per share, which is linked to the underlying financial performance of the respective entity, would result in a significantly higher (lower) fair value measurement. | |||||||||||||||||||||||||||||
• Equity investment in Star Asia and Star Asia Special Situations Fund | |||||||||||||||||||||||||||||
With respect to the Company’s investment in Star Asia and Star Asia Special Situations Fund as of December 31, 2013, the Company concluded it would be appropriate to base its fair value estimate on the terms and conditions of the sale of these assets which was completed in February 2014 (see note 4). As the sale involved multiple investments, the key assumption in the valuation is the relative fair value of Star Asia Special Situations Fund and Star Asia as compared to the total fair value of all the Star Asia Group entities sold. | |||||||||||||||||||||||||||||
Investments in Certain Entities That Calculate Net Asset Value Per Share (Or Its Equivalent) | |||||||||||||||||||||||||||||
The following table presents additional information about investments in certain entities that calculate net asset value per share (regardless of whether the “practical expedient” provisions of FASB ASC 820 have been applied) which are measured at fair value on a recurring basis at June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS OF INVESTMENTS IN CERTAIN ENTITIES | |||||||||||||||||||||||||||||
THAT CALCULATE NET ASSET VALUE PER SHARE (OR ITS EQUIVALENT) | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Fair Value June 30, 2014 | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | ||||||||||||||||||||||||||
Other investments, at fair value | |||||||||||||||||||||||||||||
EuroDekania (a) | $ | 4,290 | N/A | N/A | N/A | ||||||||||||||||||||||||
$ | 4,290 | ||||||||||||||||||||||||||||
Fair Value December 31, 2013 | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | ||||||||||||||||||||||||||
Other investments, at fair value | |||||||||||||||||||||||||||||
EuroDekania (a) | $ | 4,192 | N/A | N/A | N/A | ||||||||||||||||||||||||
Star Asia (b) | 17,104 | N/A | N/A | N/A | |||||||||||||||||||||||||
Star Asia Special Situations Fund (c) | 2,747 | N/A | N/A | N/A | |||||||||||||||||||||||||
$ | 24,043 | ||||||||||||||||||||||||||||
N/A – Not applicable. | |||||||||||||||||||||||||||||
(a)EuroDekania’s investment strategy is to make investments in hybrid capital securities that have attributes of debt and equity, primarily in the form of subordinated debt issued by insurance companies, banks and bank holding companies based primarily in Western Europe; widely syndicated leveraged loans issued by European corporations; CMBS, including subordinated interests in first mortgage real estate loans; and RMBS and other ABS backed by consumer and commercial receivables. The majority of the assets are denominated in Euros and U.K. Pounds Sterling. The fair value of the investment in this category has been estimated using the net asset value per share of the investment in accordance with the “practical expedient” provisions of FASB ASC 820. | |||||||||||||||||||||||||||||
(b)Star Asia’s investment strategy is to make investments in Asian real estate structured finance investments, including CMBS, corporate debt of REITs and real estate operating companies, whole loans, mezzanine loans, and other commercial real estate fixed income investments. On February 20, 2014, the Company completed the sale of the Company’s ownership interests in the Star Asia Group. See note 4. The Company determined the fair value of its investment in Star Asia as of December 31, 2013, by utilizing a valuation model that took into account the terms and conditions of the sale in February 2014. If the Company had used Star Asia’s unadjusted reported net asset value to determine its fair value, the carrying value of its investment in Star Asia would have been $30,261 as of December 31, 2013. | |||||||||||||||||||||||||||||
(c)The Star Asia Special Situations Fund’s investment strategy is to make investments in real estate and securities backed by real estate in Japan. The Star Asia Special Situations Fund is a closed end fund that does not allow investor redemptions. It has an initial life of three years which can be extended under certain circumstances for up to two years. As described in more detail in note 4, the Company sold its investment in Star Asia Special Situations Fund in February 2014 along with its investment in Star Asia and certain other related entities. According to ASC 820, when a sale is considered probable of the measurement date at an amount other than the underlying NAV per share, the reporting entity should not use the practical expedient in determining fair value. Therefore, the Company determined the fair value of its investment in Star Asia Special Situations Fund as of December 31, 2013, by utilizing a valuation model that took into account the terms and conditions of the sale in February 2014. | |||||||||||||||||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Derivative Financial Instruments [Abstract] | ' | ||||||||
Derivative Financial Instruments | ' | ||||||||
8. DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||
FASB ASC 815, Derivatives and Hedging (“FASB ASC 815”), provides for optional hedge accounting. When a derivative is deemed to be a hedge and certain documentation and effectiveness testing requirements are met, reporting entities are allowed to record all or a portion of the change in the fair value of a designated hedge as an adjustment to other comprehensive income (“OCI”) rather than as a gain or loss in the statements of operations. To date, the Company has not designated any derivatives as hedges under the provisions included in FASB ASC 815. | |||||||||
Derivative financial instruments are recorded at fair value. If the derivative was entered into as part of the Company’s broker-dealer operations, it will be included as a component of investments-trading or trading securities sold, not yet purchased. If it is entered into to hedge for another financial instrument included in other investments, at fair value then the derivative will be included as a component of other investments, at fair value. | |||||||||
The Company may, from time to time, enter into derivatives to manage its risk exposures (i) arising from fluctuations in foreign currency rates with respect to the Company’s investments in foreign currency denominated investments; (ii) arising from the Company’s investments in interest rate sensitive investments; and (iii) arising from the Company’s facilitation of mortgage-backed trading. Derivatives entered into by the Company, from time to time, may include (i) foreign currency forward contracts and (ii) purchase and sale agreements of TBAs. TBAs are forward mortgage-backed securities whose collateral remain “to be announced” until just prior to the trade settlement. TBAs are accounted for as derivatives under FASB ASC 815 when either of the following conditions exists: (i) when settlement of the TBA trade is not expected to occur at the next regular settlement date (which is typically the next month) or (ii) a mechanism exists to settle the contract on a net basis. Otherwise, TBAs are recorded as a standard security trade. The settlement of these transactions is not expected to have a material effect on the Company’s consolidated financial statements. | |||||||||
Derivatives involve varying degrees of off-balance sheet risk, whereby changes in the level or volatility of interest rates or market values of the underlying financial instruments may result in changes in the value of a particular financial instrument in excess of its carrying amount. Depending on the Company’s investment strategy, realized and unrealized gains and losses are recognized in principal transactions and other income or in net trading in the Company’s consolidated statements of operations on a trade date basis. | |||||||||
The Company may, from time to time, enter into the following derivative instruments: | |||||||||
Foreign Currency Forward Contracts | |||||||||
The Company invests in foreign currency denominated investments that expose it to fluctuations in foreign currency rates, and, therefore, the Company may, from time to time, hedge such exposure by using foreign currency forward contracts. The Company carries the foreign currency forward contracts at fair value and includes them as a component of other investments, at fair value in the Company’s consolidated balance sheets. As of June 30, 2014, the Company had no outstanding foreign currency forward contracts. As of December 31, 2013, the Company had outstanding foreign currency forward contracts with a notional amount of 1.25 billion Japanese Yen. | |||||||||
TBAs | |||||||||
The Company trades U.S. government agency obligations. In connection with these activities, the Company may be required to maintain inventory in order to facilitate customer transactions. In order to mitigate exposure to market risk, the Company enters in to the purchase and sale of TBAs. The Company carries the TBAs at fair value and includes them as a component of investments—trading or trading securities sold, not yet purchased in the Company’s consolidated balance sheets. At June 30, 2014, the Company had open TBA sale agreements in the notional amount of $7,300 and open TBA purchase agreements in the notional amount of $13,638. At December 31, 2013, the Company had open TBA sale agreements in the notional amount of $66,300 and open TBA purchase agreements in the notional amount of $57,108. | |||||||||
The following table presents the Company’s derivative financial instruments and the amount and location of the fair value (unrealized gain / (loss)) recognized in the consolidated balance sheets as of June 30, 2014 and December 31, 2013, respectively. | |||||||||
DERIVATIVE FINANCIAL INSTRUMENTS-BALANCE SHEET INFORMATION | |||||||||
(Dollars in Thousands) | |||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815 | Balance Sheet Classification | 30-Jun-14 | 31-Dec-13 | ||||||
TBAs | Investments-trading | $ | 20 | $ | 188 | ||||
Foreign currency forward contracts | Other investments, at fair value | - | 190 | ||||||
TBAs | Trading securities sold, not yet purchased | -10 | -66 | ||||||
$ | 10 | $ | 312 | ||||||
The following table presents the Company’s derivative financial instruments and the amount and location of the net gain (loss) recognized in the consolidated statement of operations: | |||||||||
DERIVATIVE FINANCIAL INSTRUMENTS-STATEMENT OF OPERATIONS INFORMATION | |||||||||
(Dollars in Thousands) | |||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815 | Income Statement Classification | Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||
Foreign currency forward contracts | Revenues-principal transactions and other income | $ | -347 | $ | -362 | ||||
TBAs | Revenues-net trading | 1,227 | 2,017 | ||||||
$ | 880 | $ | 1,655 | ||||||
DERIVATIVE FINANCIAL INSTRUMENTS-STATEMENT OF OPERATIONS INFORMATION | |||||||||
(Dollars in Thousands) | |||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815 | Income Statement Classification | Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||
Foreign currency forward contracts | Revenues-principal transactions and other income | $ | - | $ | -362 | ||||
TBAs | Revenues-net trading | 753 | 2,207 | ||||||
$ | 753 | $ | 1,845 | ||||||
In addition to the above activities related to TBAs, the Company also enters into TBAs in order to assist clients (generally small to mid-size mortgage loan originators) in hedging the interest rate risk associated with the mortgages owned by the clients. In general, the Company will enter into a TBA purchase agreement with the client. Then, the Company will immediately enter into a TBA sale agreement with identical terms and settlement date with a separate counterparty. The Company seeks to profit through a small mark-up in the price of the transaction. The TBAs will match underlying terms and settlement dates. Because the Company has purchased and sold the same security, it is no longer exposed to market movements of the underlying TBA. The gain or loss on the transaction is recorded as a component of net trading in the consolidated statement of operations and is included in due to or due from broker in the consolidated balance sheet until it settles. As of June 30, 2014, the Company had unsettled TBA purchase contracts and offsetting TBA sale agreements with a market value of $411,421. The net profit on these transactions is recorded as a component of net trading revenue and is included as a component of TBA revenue in the table above. Any revenue on trades that have not yet settled is included as a component of due to or due from brokers, dealers, and clearing agencies. | |||||||||
Collateralized_Securities_Tran
Collateralized Securities Transactions | 6 Months Ended |
Jun. 30, 2014 | |
Brokers and Dealers [Abstract] | ' |
Collateralized Securities Transactions | ' |
9. COLLATERALIZED SECURITIES TRANSACTIONS | |
Securities purchased under agreements to resell (“reverse repurchase agreements” or “receivables under resale agreements”) or sales of securities under agreements to repurchase (“repurchase agreements”), principally U.S. government and federal agency obligations and MBS, are treated as collateralized financing transactions and are recorded at their contracted resale or repurchase amounts plus accrued interest. The resulting interest income and expense are included in net trading in the consolidated statements of operations. | |
In the case of reverse repurchase agreements, the Company generally takes possession of securities as collateral. Likewise, in the case of repurchase agreements, the Company is required to provide the counterparty with securities. | |
In certain cases a repurchase agreement and a reverse repurchase agreement may be entered into with the same counterparty. If certain requirements are met, the offsetting provisions included in FASB ASC 210, Balance Sheet (“FASB ASC 210”), allow (but do not require) the reporting entity to net the asset and liability on the balance sheet. It is the Company’s policy to present the assets and liabilities on a gross basis even if the conditions described in offsetting provisions included in FASB ASC 210 are met. | |
The Company classifies reverse repurchase agreements as a separate line item within the assets section of the Company’s consolidated balance sheets. The Company classifies repurchase agreements as a separate line item within the liabilities section of the Company’s consolidated balance sheets. | |
In the case of reverse repurchase agreements, if the counterparty does not meet its contractual obligation to return securities used as collateral, or does not deposit additional securities or cash for margin when required, the Company may be exposed to the risk of reacquiring the securities or selling the securities at unfavorable market prices in order to satisfy its obligations to its customers or counterparties. The Company’s policy to control this risk is monitoring the market value of securities pledged or used as collateral on a daily basis and requiring adjustments in the event of excess market exposure. | |
In the case of repurchase agreements, if the counterparty makes a margin call and the Company is unable or unwilling to meet the margin call, the counterparty can sell the securities to repay the obligation. The Company is at risk that the counterparty may sell the securities at unfavorable market prices and the Company may sustain significant loss. The Company controls this risk by monitoring its liquidity position to ensure it has sufficient cash or liquid securities to meet margin calls. | |
In the normal course of doing business, the Company enters into reverse repurchase agreements that permit it to re-pledge or resell the securities to others. | |
The Company enters into reverse repurchase agreements to acquire securities to cover short positions or as an investment. The Company enters into repurchase agreements to finance the Company’s securities positions held in inventory or to finance reverse repurchase agreements entered into as an investment. | |
At June 30, 2014 and December 31, 2013, the Company held reverse repurchase agreements of $35,975 and $29,395, respectively, and the fair value of securities received as collateral under reverse repurchase agreements was $38,398 and $29,575, respectively. | |
At June 30, 2014 and December 31, 2013, the Company had repurchase agreements of $36,729 and $28,748, respectively, and the fair value of securities pledged as collateral under repurchase agreements was $39,391 and $28,591, respectively. These amounts include collateral for reverse repurchase agreements that were re-pledged as collateral for repurchase agreements. | |
As of June 30, 2014 and December 31, 2013, the Company’s reverse repurchase agreements and repurchase agreements were predominantly collateralized securities in the following asset classes: Agency Specified Pools, Agency Hybrid Arms, and Fixed Rate Agency CMOs. | |
Goodwill
Goodwill | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Goodwill Disclosure [Abstract] | ' | ||||||
Goodwill | ' | ||||||
10. GOODWILL | |||||||
The following table presents goodwill: | |||||||
GOODWILL | |||||||
(Dollars in Thousands) | |||||||
30-Jun-14 | 31-Dec-13 | ||||||
Cira SCM, LLC | $ | - | $ | 3,121 | |||
AFN | 110 | 110 | |||||
JVB | 7,882 | 7,882 | |||||
Goodwill | $ | 7,992 | $ | 11,113 | |||
The Company measures its goodwill impairment on an annual basis or when events indicate that goodwill may be impaired. The Company first assesses qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. Based on the results of the qualitative assessment, the Company then determines whether it needs to calculate the fair value of the reporting unit as part of the first step of the two-step goodwill impairment test. The Company performs its annual impairment test of: Cira SCM, LLC (“Cira SCM”) goodwill on July 1; AFN goodwill on October 1; and JVB on January 1. | |||||||
The goodwill attributable to Cira SCM relates to Cohen Brothers’ acquisition of the 10% of Cira SCM that the Company did not already own in exchange for 189,901 membership units of Cohen Brothers, from a non-controlling interest partner in July 2007. | |||||||
For its annual impairment test of Cira SCM, the Company first estimates the current fair value of the Cira SCM reporting unit. This fair value is compared to the book value of the goodwill and, if the fair value is less, then the goodwill is deemed impaired. The Company determines the fair value of the Cira SCM using a discounted cash flow analysis which is based on an income approach. During the six and three months ended June 30, 2014, the Company recognized an impairment charge of $3,121. The charge is included in the consolidated statements of operations as impairment of goodwill and is reflected as a component of operating expenses. | |||||||
Other_Assets_and_Accounts_Paya
Other Assets and Accounts Payable and Other Liabilities | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Other Assets and Accounts Payable and Other Liabilities [Abstract] | ' | ||||||
Other Assets And Accounts Payable And Other Liabilities | ' | ||||||
11. OTHER ASSETS AND ACCOUNTS PAYABLE AND OTHER LIABILITIES | |||||||
Other assets included: | |||||||
OTHER ASSETS | |||||||
(Dollars in Thousands) | |||||||
30-Jun-14 | 31-Dec-13 | ||||||
Deferred costs | $ | 590 | $ | 644 | |||
Note receivable | 2,314 | 1,849 | |||||
Prepaid expenses | 2,306 | 2,226 | |||||
Prepaid income taxes | 48 | 146 | |||||
Security deposits | 2,472 | 2,492 | |||||
Miscellaneous other assets | 207 | 146 | |||||
Cost method investment | 235 | 235 | |||||
Furniture, equipment, and leasehold improvements, net | 1,606 | 2,054 | |||||
Intangible assets | 166 | 483 | |||||
Equity method affiliates | - | -31 | |||||
Other assets | $ | 9,944 | $ | 10,244 | |||
Accounts payable and other liabilities included: | |||||||
ACCOUNTS PAYABLE AND OTHER LIABILITIES | |||||||
(Dollars in Thousands) | |||||||
30-Jun-14 | 31-Dec-13 | ||||||
Accounts payable | $ | 518 | $ | 738 | |||
Rent payable | 826 | 1,058 | |||||
Accrued interest payable | 325 | 376 | |||||
Accrued interest on securities sold, not yet purchased | 440 | 255 | |||||
Payroll taxes payable | 571 | 1,055 | |||||
Other general accrued expenses | 1,809 | 4,994 | |||||
Accounts payable and other liabilities | $ | 4,489 | $ | 8,476 | |||
Investments_In_Equity_Method_A
Investments In Equity Method Affiliates | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Investments in Equity Method Affiliates [Abstract] | ' | |||||||||||||||
Investments In Equity Method Affiliates | ' | |||||||||||||||
12. INVESTMENTS IN EQUITY METHOD AFFILIATES | ||||||||||||||||
The Company has several investments that are accounted for under the equity method. Equity method accounting requires that the Company record its investment on the consolidated balance sheets and recognize its share of the affiliate’s net income as earnings each year. Investment in equity method affiliates is included as a component of other assets on the Company’s consolidated balance sheets. | ||||||||||||||||
The Company has certain equity method affiliates for which it has elected the fair value option. Those investees are excluded from the table below. Those investees are included as a component of other investments, at fair value in the consolidated balance sheets. All gains and losses (unrealized and realized) from securities classified as other investments, at fair value in the consolidated balance sheets are recorded as a component of principal transactions and other income in the consolidated statements of operations. | ||||||||||||||||
In December, 2013, the Company acquired additional shares of EuroDekania bringing its ownership to 17% of EuroDekania’s outstanding shares and share equivalents. However, when the ownership interests of related parties are considered, the combined ownership percentage exceeds 20%. Accordingly, the Company concluded that with the recent purchase, its investment in EuroDekania should be considered an investment in an equity method affiliate. However, the Company continued its fair value election regarding EuroDekania. See notes 6 and 7. | ||||||||||||||||
During the three months ended June 30, 2014, the Company’s sole equity method investee (excluding equity method affiliates for which it had adopted the fair value option): Star Asia Opportunity, LLC (“Star Asia Opportunity”) was fully liquidated and the Company received a final distribution. On February 20, 2014, the Company completed the sale of the Company’s ownership interests in the Star Asia Group which includes Star Asia Capital Management, SAA Manager and affiliates from the table below. | ||||||||||||||||
The following table summarizes the activity and the earnings of the Company’s equity method affiliates. | ||||||||||||||||
INVESTMENTS IN EQUITY METHOD AFFILIATES | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Star | Star Asia | |||||||||||||||
Asia | Capital | SAA | ||||||||||||||
Opportunity | Management | Manager | Other | Total | ||||||||||||
1-Jan-14 | $ | 17 | $ | -81 | $ | 12 | $ | 21 | $ | -31 | ||||||
Distributions / repayments | -17 | -15 | -25 | -10 | -67 | |||||||||||
Earnings / (loss) realized | - | 13 | 14 | - | 27 | |||||||||||
Sale (1) | - | 83 | -1 | -11 | 71 | |||||||||||
30-Jun-14 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
(1)See note 4. | ||||||||||||||||
The table below summarizes the combined financial information for all equity method investees held as of the indicated periods, including equity method investees for which the fair value option was elected. The aggregated summarized financial data below does not represent the Company’s proportionate share of equity method investees’ assets or earnings. | ||||||||||||||||
SUMMARY DATA OF EQUITY METHOD INVESTEES | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
Total Assets | $ | 25,936 | $ | 370,388 | ||||||||||||
Liabilities | $ | 53 | $ | 144,578 | ||||||||||||
Equity attributable to the investees | 25,793 | 225,810 | ||||||||||||||
Non-controlling interest | 90 | - | ||||||||||||||
Total Liabilities & Equity | $ | 25,936 | $ | 370,388 | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income / (loss) | $ | 1,813 | $ | 8,590 | $ | 8,950 | $ | -3,222 | ||||||||
Net income / (loss) attributable to the investees | $ | 1,807 | $ | 8,789 | $ | 8,921 | $ | -2,666 | ||||||||
See note 21 for information regarding transactions with the Company’s equity method investees. | ||||||||||||||||
Variable_Interest_Entities
Variable Interest Entities | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Variable Interest Entity Disclosure [Abstract] | ' | |||||||||
Variable Interest Entities | ' | |||||||||
13. VARIABLE INTEREST ENTITIES | ||||||||||
FASB ASC 810, Consolidation (“FASB ASC 810”) contains the guidance surrounding the definition of variable interest entities (“VIEs”), the definition of VIEs, and the consolidation rules surrounding VIEs. In general, VIEs are entities in which equity investors lack the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. The Company has variable interests in VIEs through its management contracts and investments in various securitization entities including CLOs and CDOs. | ||||||||||
Once it is determined that the Company holds a variable interest in a VIE, FASB ASC 810 requires that the Company perform a qualitative analysis to determine (i) which entity has the power to direct the matters that most significantly impact the VIE’s financial performance; and (ii) if the Company has the obligation to absorb the losses of the VIE that could potentially be significant to the VIE or the right to receive the benefits of the VIE that could potentially be significant to the VIE. The entity that has both of these characteristics is deemed to be the primary beneficiary and required to consolidate the VIE. This assessment must be done on an ongoing basis. | ||||||||||
The Company classifies the VIEs it is involved with into two groups: (i) VIEs managed by the Company and (ii) VIEs managed by third parties. In the case of the VIEs that the Company has been involved with, the Company has generally concluded that the entity that manages the VIE has the power to direct the matters that most significantly impact the VIEs financial performance. This is not a blanket conclusion as it is possible for an entity other than the manager to have the power to direct such matters. However, for all the VIEs the Company is involved with as of June 30, 2014, the Company has drawn this conclusion. | ||||||||||
In the case where the Company has an interest in a VIE managed by a third party, the Company has concluded that it is not the primary beneficiary because the Company does not have the power to direct its activities. In the case of an interest in a VIE managed by the Company, the Company performs an additional qualitative analysis to determine if its interest (including any investment as well as any management fees that qualify as variable interests) could absorb losses or receive benefits that could potentially be significant to the VIE. This analysis considers the most optimistic and pessimistic scenarios of potential economic results that could reasonably be experienced by the VIE. Then, the Company compares the benefits it would receive (in the optimistic scenario) or the losses it would absorb (in the pessimistic scenario) as compared to all benefits and losses absorbed by the VIE in the aggregate. If the benefits or losses absorbed by the Company were significant as compared to total benefits and losses absorbed by all variable interest holders, then the Company would conclude it is the primary beneficiary. | ||||||||||
As of June 30, 2014, the Company had variable interests in various securitization VIEs, but determined that it is not the primary beneficiary thereof, and, therefore, the Company is not consolidating the securitization VIEs. The maximum potential financial statement loss the Company could incur if the securitization vehicles were to default on all of their obligations is (i) the loss of value of the interests in securitizations that the Company holds in its inventory at the time, and (ii) any management fee receivables in the case of managed VIEs. The Company did not provide financial support to these VIEs during the six and three months ended June 30, 2014 and 2013 and had no liabilities, contingent liabilities, guarantees (implicit or explicit) related to these VIEs at June 30, 2014 and December 31, 2013. | ||||||||||
The table below presents the carrying amounts of the assets in the Company’s consolidated balance sheets that relate to the Company’s variable interest in identified VIEs with the exception of (i) the two trusts VIEs that hold the Company’s junior subordinated notes (see note 14), and (ii) any security that represents an interest in a VIE that is included in investments-trading or securities sold but not yet purchased in the Company’s consolidated balance sheets. The table below shows the Company’s maximum exposure to loss associated with these identified nonconsolidated VIEs in which it held variable interests at June 30, 2014 and December 31, 2013. | ||||||||||
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES | ||||||||||
(Dollars in Thousands) | ||||||||||
30-Jun-14 | ||||||||||
Other Receivable | Other Investments, at fair value | Maximum Exposure to loss in non-consolidated VIEs | ||||||||
Managed VIEs | $ | 2,137 | $ | - | $ | 2,137 | ||||
Third party managed VIEs | 91 | 18,832 | 18,923 | |||||||
Total | $ | 2,228 | $ | 18,832 | $ | 21,060 | ||||
31-Dec-13 | ||||||||||
Other Receivable | Other Investments, at fair value | Maximum Exposure to loss in non-consolidated VIEs | ||||||||
Managed VIEs | $ | 2,239 | $ | - | $ | 2,239 | ||||
Third party managed VIEs | 84 | 35 | 119 | |||||||
Total | $ | 2,323 | $ | 35 | $ | 2,358 | ||||
Debt
Debt | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Debt [Abstract] | ' | ||||||||||||||||||
Debt | ' | ||||||||||||||||||
14. DEBT | |||||||||||||||||||
The Company had the following debt outstanding: | |||||||||||||||||||
DETAIL OF DEBT | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Description | Current Outstanding Par | 30-Jun-14 | 31-Dec-13 | Interest Rate Terms | Interest (4) | Maturity | |||||||||||||
Convertible senior notes: | |||||||||||||||||||
10.50% contingent convertible senior notes (the "New Notes") | $ | - | $ | - | $ | 3,115 | 10.50% | 10.50 | % | May 2014 (1) | |||||||||
8.00% convertible senior notes (the "8.0% Convertible Notes") | 8,248 | 8,248 | 8,248 | 8.00% | 8.00 | % | September 2018 (2) | ||||||||||||
$ | 8,248 | 8,248 | 11,363 | ||||||||||||||||
Junior subordinated notes: | |||||||||||||||||||
Alesco Capital Trust I | $ | 28,125 | -3 | 11,087 | 10,697 | 4.23% | 4.23 | % | Jul-37 | ||||||||||
Sunset Financial Statutory Trust I | 20,000 | -3 | 7,895 | 7,614 | 4.38% | 4.38 | % | Mar-35 | |||||||||||
$ | 48,125 | 18,982 | 18,311 | ||||||||||||||||
Total | $ | 27,230 | $ | 29,674 | |||||||||||||||
(1)On May 20, 2014, the Company redeemed the entire $3,121 aggregate principal amount of the New Notes outstanding. | |||||||||||||||||||
(2) The holders of the 8.0% Convertible Notes may convert all or any part of the outstanding principal amount of the 8.0% Convertible Notes at any time prior to maturity into shares of the Company’s common stock at a conversion price of $3.00 per share, subject to customary anti-dilution adjustments. | |||||||||||||||||||
(3)The outstanding par represents the total par amount of the junior subordinated notes held by two separate trusts. The Company does not consolidate these trusts. The Company holds $1,489 par value of these junior subordinated notes, comprised of $870 par value of junior subordinated notes related to Alesco Capital Trust I and $619 par value of junior subordinated notes related to Sunset Financial Statutory Trust I. These notes have a carrying value of $0. Therefore, the net par value held by third parties is $48,125. | |||||||||||||||||||
(4)Represents the interest rate as of the last day of the reporting period. | |||||||||||||||||||
Refer to note 17 to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, for a discussion of the Company’s debt. | |||||||||||||||||||
Permanent_Equity
Permanent Equity | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Equity [Abstract] | ' | ||||||
Equity | ' | ||||||
15. EQUITY | |||||||
Stockholders’ Equity | |||||||
Common Equity: The following table reflects the activity for the six months ended June 30, 2014 related to the number of shares of unrestricted common stock that the Company had issued as of June 30, 2014: | |||||||
Common Stock | |||||||
Shares | |||||||
31-Dec-13 | 14,398,579 | ||||||
Shares issued in connection with the redemption of Operating LLC units | 186,342 | ||||||
Vesting of shares | 393,818 | ||||||
Shares withheld for employee taxes | -31,426 | ||||||
30-Jun-14 | 14,947,313 | ||||||
In connection with the acquisition of JVB Holdings in January 2011, the Company issued 559,020 restricted units of the Operating LLC to certain of the former owners of JVB Holdings who remained employees of JVB Holdings. As of December 31, 2013, there were 186,342 restricted units outstanding. These units vested over a three year period (of which all three years have elapsed) and were treated as compensation for future service. In January 2014, the remaining 186,342 restricted units of the Operating LLC vested, and the holders of these vested Operating LLC membership units elected to redeem these units. The Company, at its discretion, issued 186,342 shares of IFMI common stock to the JVB Holdings sellers in exchange for these vested membership units. As of June 30, 2014, there were no restricted units outstanding. | |||||||
Acquisition and Surrender of Additional Units of the Operating LLC, net: Effective January 1, 2011, IFMI and the Operating LLC entered into a Unit Issuance and Surrender Agreement (the “UIS Agreement”) which was approved by IFMI’s Board of Directors and the board of managers of the Operating LLC. In an effort to maintain a 1:1 ratio of IFMI’s common stock to the number of membership units IFMI holds in the Operating LLC, the UIS Agreement calls for the issuance of additional membership units of the Operating LLC to IFMI when IFMI issues its common stock to employees under existing equity compensation plans. In certain cases, the UIS Agreement calls for IFMI to surrender units to the Operating LLC when certain restricted shares are forfeited by the employee or repurchased. | |||||||
During the six months ended June 30, 2014, IFMI received units of the Operating LLC. The following table displays the amount of units received (net of surrenders) by IFMI pursuant to the UIS Agreement, as a result of the vesting and redemption of membership units of the Operating LLC by certain former owners of JVB Holdings for IFMI common stock. | |||||||
Operating LLC | |||||||
Membership Units | |||||||
Units related to UIS Agreement | 347,751 | ||||||
Units received from certain former owners of JVB Holdings | 186,342 | ||||||
Total | 534,093 | ||||||
The Company recognized a net increase in additional paid in capital of $250 and a net decrease in accumulated other comprehensive income of $14 with an offsetting decrease in non-controlling interest of $236 in connection with the acquisition and surrender of additional units of the Operating LLC. The following schedule presents the effects of changes in IFMI’s ownership interest in the Operating LLC on the equity attributable to IFMI for the six months ended: | |||||||
30-Jun-14 | 30-Jun-13 | ||||||
Net income / (loss) attributable to IFMI | $ | -4,221 | $ | -9,202 | |||
Transfers (to) from the non-controlling interest: | |||||||
Increase / (decrease) in IFMI's paid in capital for the | |||||||
acquisition / (surrender) of additional units in consolidated | |||||||
subsidiary, net | 250 | 634 | |||||
Changes from net income / (loss) attributable to IFMI and transfers (to) from the non-controlling interest: | $ | -3,971 | $ | -8,568 | |||
Net_Capital_Requirements
Net Capital Requirements | 6 Months Ended |
Jun. 30, 2014 | |
Net Capital Requirements [Abstract] | ' |
Net Capital Requirements | ' |
16. NET CAPITAL REQUIREMENTS | |
The U.S. broker-dealer subsidiaries of the Company are subject to the net capital provision of Rule 15c3-1 under the Exchange Act, which requires the maintenance of minimum net capital, as defined therein. In January 2014, the Company merged CCPR into JVB, resulting in the Company having one broker-dealer subsidiary in the United States operating under the JVB brand. | |
As of June 30, 2014, JVB’s adjusted net capital was $9,728, which exceeded the minimum requirements by $9,466. | |
CCFL, a subsidiary of the Company regulated by the Financial Conduct Authority (formerly known as the Financial Services Authority) in the United Kingdom, is subject to the net liquid capital provision of the Financial Services and Markets Act 2000, GENPRU 2.140R to 2.1.57R, relating to financial prudence with regards to the European Investment Services Directive and the European Capital Adequacy Directive, which requires the maintenance of minimum liquid capital, as defined therein. As of June 30, 2014, the total minimum required net liquid capital was $1,982, and net liquid capital in CCFL was $3,049, which exceeded the minimum requirements by $1,067 and was in compliance with the net liquid capital provisions. | |
Earnings_Loss_Per_Common_Share
Earnings / (Loss) Per Common Share | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Earnings / (Loss) Per Common Share [Abstract] | ' | |||||||||||
Earnings / (Loss) Per Common Share | ' | |||||||||||
17. EARNINGS / (Loss) PER COMMON SHARE | ||||||||||||
The following table presents a reconciliation of basic and diluted earnings / (loss) per common share for the periods indicated. | ||||||||||||
EARNINGS / (LOSS) PER COMMON SHARE | ||||||||||||
(Dollars in Thousands, except share or per share information) | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Net income / (loss) attributable to IFMI | $ | -2,123 | $ | -4,702 | $ | -4,221 | $ | -9,202 | ||||
Add/ (deduct): Income / (loss) attributable to non-controlling interest attributable to Operating LLC membership units exchangeable into IFMI shares (1) | -734 | -2,158 | -1,441 | -4,249 | ||||||||
Add / (deduct): Adjustment (2) | -11 | 8 | -43 | -6 | ||||||||
Net income / (loss) on a fully converted basis | $ | -2,868 | $ | -6,852 | $ | -5,705 | $ | -13,457 | ||||
Weighted average common shares outstanding - Basic | 15,105,751 | 11,658,512 | 14,987,079 | 11,504,613 | ||||||||
Unrestricted Operating LLC membership units exchangeable into IFMI shares (1) | 5,324,140 | 5,324,090 | 5,324,137 | 5,324,090 | ||||||||
Weighted average common shares outstanding - Diluted (3) | 20,429,891 | 16,982,602 | 20,311,216 | 16,828,703 | ||||||||
Net income / (loss) per common share - Basic | $ | -0.14 | $ | -0.4 | $ | -0.28 | $ | -0.8 | ||||
Net income / (loss) per common share - Diluted | $ | -0.14 | $ | -0.4 | $ | -0.28 | $ | -0.8 | ||||
(1)The Operating LLC membership units not held by IFMI (that is, those held by the non-controlling interest for the six and three months ended June 30, 2014 and 2013) may be redeemed and exchanged into shares of the Company on a one-to-one basis. The 4,983,557 Operating LLC membership units held by Daniel G. Cohen, the Vice Chairman of the Company’s Board of Directors and of the board of managers of the Operating LLC, President and Chief Executive Officer of the Company’s European Business, and the President of CCFL, are redeemable at Mr. Cohen’s option, at any time, for (i) cash in an amount equal to the average of the per share closing prices of the Company’s common stock for the ten consecutive trading days immediately preceding the date the Company receives Mr. Cohen’s redemption notice, or (ii) at the Company’s option, one share of the Company’s common stock, subject, in each case, to appropriate adjustment upon the occurrence of an issuance of additional shares of the Company’ common stock as a dividend or other distribution on the Company’s outstanding common stock, or a further subdivision or combination of the outstanding shares of the Company’s common stock. The Operating LLC membership units held by other members of the Operating LLC have the same redemption rights as described above. These membership units are not included in the computation of basic earnings per share. These membership units enter into the computation of diluted net income / (loss) per common share when the effect is dilutive using the if-converted method. | ||||||||||||
(2)An adjustment is included for the following: (i) if the Operating LLC membership units had been converted at the beginning of the period, the Company would have incurred a higher income tax expense or realized a higher income tax benefit, as applicable; and (ii) to adjust the non-controlling interest amount to be consistent with the weighted average share calculation. | ||||||||||||
(3)For the six months ended June 30, 2014 and 2013, weighted average common shares outstanding excludes a total of 145,966 and 344,834 shares, respectively, representing restricted Operating LLC membership units, restricted IFMI common stock, and restricted units of IFMI common stock which would be anti-dilutive because of the Company’s net loss. For the three months ended June 30, 2014 and 2013, weighted average common shares outstanding excludes a total of 71,418 shares and 371,778 shares respectively, representing restricted Operating LLC membership units, restricted IFMI common stock, and restricted units of IFMI common stock which would be anti-dilutive because of the Company’s net loss. For the six and three months ended June 30, 2014, weighted average common shares outstanding also excludes 2,749,167 shares from the assumed conversion of the 8.0% Convertibles Notes because the inclusion of the converted shares would be anti-dilutive. | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
18. COMMITMENTS AND CONTINGENCIES | |
Legal and Regulatory Proceedings | |
The Company’s former U.S. broker-dealer subsidiary, Cohen & Company Securities, LLC (“CCS”), and one of its registered investment adviser subsidiaries, CIRA SCM, are parties to litigation that was commenced on June 7, 2013 in the Supreme Court of the State of New York under the caption Northern Rock (Asset Management) PLC v. Societe Generale Corporate and Investment Banking, Cohen & Company Securities, et al. Northern Rock (Asset Management) PLC (“Northern Rock”), the plaintiff, served the Summons with Notice on Defendants on October 3, 2013, and, on November 12, 2013, Northern Rock filed its complaint alleging fraud, fraudulent inducement, fraudulent concealment, breach of contract, negligent misrepresentation, and unjust enrichment in connection with Northern Rock’s investment in Kleros Preferred Funding VIII, Ltd., a CDO. The relief sought by Northern Rock under these various legal theories includes damages, rescission, and disgorgement, as well as costs and attorneys’ fees. CCS and CIRA SCM filed a motion to dismiss the complaint in lieu of an answer on January 27, 2014. Northern Rock filed its opposition on March 4, 2014. The Company intends to defend the action vigorously. | |
In addition to the matters set forth above, the Company is a party to various routine legal proceedings, claims, and regulatory inquiries arising out of the ordinary course of the Company’s business. Management believes that the results of these routine legal proceedings, claims, and regulatory matters will not have a material adverse effect on the Company’s financial condition, or on the Company’s operations and cash flows. However, the Company cannot estimate the legal fees and expenses to be incurred in connection with these routine matters and, therefore, is unable to determine whether these future legal fees and expenses will have a material impact on the Company’s operations and cash flows. It is the Company’s policy to expense legal and other fees as incurred. | |
Pennsylvania Income Tax Assessment | |
In October, 2013, the Company received an assessment from the Pennsylvania Department of Revenue in the amount of $4,683 (including penalties) related to a subsidiary of AFN for the 2009 tax year. The assessment denied this subsidiary’s Keystone Opportunity Zone (“KOZ”) credit for that year. The Company filed an administrative appeal of this assessment with the Pennsylvania Department of Revenue which was denied in June 2014. The Company intends to file an appeal with the Pennsylvania Board of Finance and Revenue. If the Pennsylvania Board of Finance and Revenue were to uphold the assessment, the Company could then seek relief in Pennsylvania Commonwealth Court. The Company has evaluated the assessment in accordance with the provisions of ASC 740 and determined not to record any reserve for this assessment. | |
Segment_And_Geographic_Informa
Segment And Geographic Information | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Segment and Geographic Information [Abstract] | ' | ||||||||||||||||||
Segment And Geographic Information | ' | ||||||||||||||||||
19. SEGMENT AND GEOGRAPHIC INFORMATION | |||||||||||||||||||
Segment Information | |||||||||||||||||||
The Company operates within three business segments: Capital Markets, Asset Management, and Principal Investing. See note 1. | |||||||||||||||||||
The Company’s business segment information for the six and three months ended June 30, 2014 and 2013 was prepared using the following methodologies and generally represents the information that is relied upon by management in its decision making processes: | |||||||||||||||||||
(a) Revenues and expenses directly associated with each business segment are included in determining net income / (loss) by segment. | |||||||||||||||||||
(b) Indirect expenses (such as general and administrative expenses including executive and indirect overhead costs) not directly associated with specific business segments are not allocated to the business segments’ statements of operations. Accordingly, the Company presents segment information consistent with internal management reporting. See notes (1) in the tables below for more detail on unallocated items. The following tables present the financial information for the Company’s segments for the periods indicated: | |||||||||||||||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 13,549 | $ | - | $ | - | $ | 13,549 | $ | - | $ | 13,549 | |||||||
Asset management | - | 7,643 | - | 7,643 | - | 7,643 | |||||||||||||
New issue and advisory | 2,718 | - | - | 2,718 | - | 2,718 | |||||||||||||
Principal transactions and other income | 523 | 778 | 2,211 | 3,512 | - | 3,512 | |||||||||||||
Total revenues | 16,790 | 8,421 | 2,211 | 27,422 | - | 27,422 | |||||||||||||
Total operating expenses | 17,139 | 6,706 | 47 | 23,892 | 6,882 | 30,774 | |||||||||||||
Operating income / (loss) | -349 | 1,715 | 2,164 | 3,530 | -6,882 | -3,352 | |||||||||||||
Interest expense | - | - | - | - | -2,238 | -2,238 | |||||||||||||
Income / (loss) from equity method affiliates | - | 27 | - | 27 | - | 27 | |||||||||||||
Income / (loss) before income taxes | -349 | 1,742 | 2,164 | 3,557 | -9,120 | -5,563 | |||||||||||||
Income tax expense / (benefit) | - | - | - | - | 99 | 99 | |||||||||||||
Net income / (loss) | -349 | 1,742 | 2,164 | 3,557 | -9,219 | -5,662 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | - | - | - | - | -1,441 | -1,441 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | -349 | $ | 1,742 | $ | 2,164 | $ | 3,557 | $ | -7,778 | $ | -4,221 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 410 | $ | 45 | $ | - | $ | 455 | $ | 143 | $ | 598 | |||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 24,689 | $ | - | $ | - | $ | 24,689 | $ | - | $ | 24,689 | |||||||
Asset management | - | 8,917 | - | 8,917 | - | 8,917 | |||||||||||||
New issue and advisory | 1,567 | - | - | 1,567 | - | 1,567 | |||||||||||||
Principal transactions and other income | 144 | 898 | -8,455 | -7,413 | - | -7,413 | |||||||||||||
Total revenues | 26,400 | 9,815 | -8,455 | 27,760 | - | 27,760 | |||||||||||||
Total operating expenses | 28,536 | 5,613 | 162 | 34,311 | 6,419 | 40,730 | |||||||||||||
Operating income / (loss) | -2,136 | 4,202 | -8,617 | -6,551 | -6,419 | -12,970 | |||||||||||||
Interest expense | -109 | -7 | - | -116 | -1,948 | -2,064 | |||||||||||||
Income / (loss) from equity method affiliates | - | 332 | 1,282 | 1,614 | - | 1,614 | |||||||||||||
Income / (loss) before income taxes | -2,245 | 4,527 | -7,335 | -5,053 | -8,367 | -13,420 | |||||||||||||
Income tax expense / (benefit) | -42 | - | - | -42 | 88 | 46 | |||||||||||||
Net income / (loss) | -2,203 | 4,527 | -7,335 | -5,011 | -8,455 | -13,466 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | -15 | - | - | -15 | -4,249 | -4,264 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | -2,188 | $ | 4,527 | $ | -7,335 | $ | -4,996 | $ | -4,206 | $ | -9,202 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 390 | $ | 131 | $ | - | $ | 521 | $ | 148 | $ | 669 | |||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 6,620 | $ | - | $ | - | $ | 6,620 | $ | - | $ | 6,620 | |||||||
Asset management | - | 3,386 | - | 3,386 | - | 3,386 | |||||||||||||
New issue and advisory | 2,388 | - | - | 2,388 | - | 2,388 | |||||||||||||
Principal transactions and other income | 158 | 397 | 1,286 | 1,841 | - | 1,841 | |||||||||||||
Total revenues | 9,166 | 3,783 | 1,286 | 14,235 | - | 14,235 | |||||||||||||
Total operating expenses | 8,186 | 4,588 | - | 12,774 | 3,121 | 15,895 | |||||||||||||
Operating income / (loss) | 980 | -805 | 1,286 | 1,461 | -3,121 | -1,660 | |||||||||||||
Interest expense | - | - | - | - | -1,109 | -1,109 | |||||||||||||
Income / (loss) from equity method affiliates | - | - | 1 | 1 | - | 1 | |||||||||||||
Income / (loss) before income taxes | 980 | -805 | 1,287 | 1,462 | -4,230 | -2,768 | |||||||||||||
Income tax expense / (benefit) | - | - | - | - | 89 | 89 | |||||||||||||
Net income / (loss) | 980 | -805 | 1,287 | 1,462 | -4,319 | -2,857 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | - | - | - | - | -734 | -734 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | 980 | $ | -805 | $ | 1,287 | $ | 1,462 | $ | -3,585 | $ | -2,123 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 184 | $ | 8 | $ | - | $ | 192 | $ | 75 | $ | 267 | |||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 11,630 | $ | - | $ | - | $ | 11,630 | $ | - | $ | 11,630 | |||||||
Asset management | - | 4,155 | - | 4,155 | - | 4,155 | |||||||||||||
New issue and advisory | 572 | - | - | 572 | - | 572 | |||||||||||||
Principal transactions and other income | 89 | 388 | -3,100 | -2,623 | - | -2,623 | |||||||||||||
Total revenues | 12,291 | 4,543 | -3,100 | 13,734 | - | 13,734 | |||||||||||||
Total operating expenses | 14,021 | 2,681 | 83 | 16,785 | 2,847 | 19,632 | |||||||||||||
Operating income / (loss) | -1,730 | 1,862 | -3,183 | -3,051 | -2,847 | -5,898 | |||||||||||||
Interest expense | -55 | -4 | - | -59 | -976 | -1,035 | |||||||||||||
Income / (loss) from equity method affiliates | - | 122 | -27 | 95 | - | 95 | |||||||||||||
Income / (loss) before income taxes | -1,785 | 1,980 | -3,210 | -3,015 | -3,823 | -6,838 | |||||||||||||
Income tax expense / (benefit) | -17 | - | - | -17 | 51 | 34 | |||||||||||||
Net income / (loss) | -1,768 | 1,980 | -3,210 | -2,998 | -3,874 | -6,872 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | -12 | - | - | -12 | -2,158 | -2,170 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | -1,756 | $ | 1,980 | $ | -3,210 | $ | -2,986 | $ | -1,716 | $ | -4,702 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 193 | $ | 93 | $ | - | $ | 286 | $ | 73 | $ | 359 | |||||||
(1)Unallocated includes certain expenses incurred by indirect overhead and support departments (such as the executive, finance, legal, information technology, human resources, risk, compliance, and other similar overhead and support departments). Some of the items not allocated include: (1) operating expenses (such as cash compensation and benefits, equity-based compensation expense, professional fees, travel and entertainment, consulting fees, and rent) related to support departments excluding certain departments that directly support the Capital Markets business segment; (2) interest expense on debt; and (3) income taxes. Management does not consider these items necessary for an understanding of the operating results of these business segments and such amounts are excluded in business segment reporting to the Chief Operating Decision Maker. | |||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Total Assets | $ | 176,519 | $ | 3,893 | $ | 26,652 | $ | 207,064 | $ | 7,650 | $ | 214,714 | |||||||
Included within total assets: | |||||||||||||||||||
Investment in equity method affiliates | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
Goodwill (2) | $ | 7,937 | $ | 55 | $ | - | $ | 7,992 | $ | - | $ | 7,992 | |||||||
Intangible assets (2) | $ | 166 | $ | - | $ | - | $ | 166 | $ | - | $ | 166 | |||||||
Balance Sheet Data | |||||||||||||||||||
As of June 30, 2013 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Total Assets | $ | 310,458 | $ | 8,888 | $ | 28,707 | $ | 348,053 | $ | 9,629 | $ | 357,682 | |||||||
Included within total assets: | |||||||||||||||||||
Investment in equity method affiliates | $ | - | $ | -69 | $ | 17 | $ | -52 | $ | - | $ | -52 | |||||||
Goodwill (2) | $ | 7,937 | $ | 3,176 | $ | - | $ | 11,113 | $ | - | $ | 11,113 | |||||||
Intangible assets (2) | $ | 332 | $ | 302 | $ | - | $ | 634 | $ | - | $ | 634 | |||||||
(1)Unallocated assets primarily include (1) amounts due from related parties; (2) furniture and equipment, net; and (3) other assets that are not considered necessary for an understanding of business segment assets and such amounts are excluded in business segment reporting to the Chief Operating Decision Maker. | |||||||||||||||||||
(2)Goodwill and intangible assets as of June 30, 2014 and 2013 are allocated to the Capital Markets and Asset Management business segments as indicated in the table from above. | |||||||||||||||||||
Asset management total operating expenses include an impairment charge of $3,121 for the six and three months ended June 30, 2014 related to the impairment of goodwill attributable to Cira SCM. | |||||||||||||||||||
Geographic Information | |||||||||||||||||||
The Company conducts its business activities through offices in the following locations: (1) United States; (2) United Kingdom and other; and (3) for the period prior to February 20, 2014, Asia. Total revenues by geographic area are summarized as follows: | |||||||||||||||||||
GEOGRAPHIC DATA | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Total Revenues: | |||||||||||||||||||
United States | $ | 12,600 | $ | 9,812 | $ | 23,289 | $ | 21,209 | |||||||||||
United Kingdom & Other | 1,635 | 3,140 | 4,009 | 5,496 | |||||||||||||||
Asia | - | 782 | 124 | 1,055 | |||||||||||||||
Total | $ | 14,235 | $ | 13,734 | $ | 27,422 | $ | 27,760 | |||||||||||
Long-lived assets attributable to an individual country, other than the United States, are not material. | |||||||||||||||||||
Supplemental_Cash_Flow_Disclos
Supplemental Cash Flow Disclosure | 6 Months Ended |
Jun. 30, 2014 | |
Supplemental Cash Flow Disclosure [Abstract] | ' |
Supplemental Cash Flow Disclosure | ' |
20. SUPPLEMENTAL CASH FLOW DISCLOSURE | |
Interest paid by the Company on its debt was $1,569 and $1,522 for the six months ended June 30, 2014 and 2013, respectively. | |
The Company paid income taxes of $28 and $281 for the six months ended June 30, 2014 and 2013, respectively. The Company received $24 and $19 income tax refunds for the six months ended June 30, 2014 and 2013, respectively. | |
For the six months ended June 30, 2014, the Company had the following significant non-cash transactions that are not reflected on the statement of cash flows: | |
• The Company acquired additional units of the Operating LLC pursuant to the UIS Agreement and in connection with the redemption of vested Operating LLC units by IFMI. The Company recognized a net increase in additional paid-in capital of $250, a net decrease of $14 in accumulated other comprehensive income, and a decrease of $236 in non-controlling interest. See note 14. | |
For the six months ended June 30, 2013, the Company had the following significant non-cash transactions that are not reflected on the statement of cash flows: | |
• The Company recognized a net increase in additional paid-in capital of $634, a net decrease of $25 in accumulated other comprehensive income, and a decrease of $609 in non-controlling interest as a result of additional units of the Operating LLC issued to IFMI as a result of the UIS agreement and redemption of vested Operating LLC units by IFMI. | |
• In connection with Star Asia Manager repurchasing its outstanding equity units held by Star Asia Mercury LLC (formerly Mercury Partners, LLC) and, as a result, the Company obtaining 100% voting control of Star Asia Manager on March 1, 2013 (the “Star Asia Manager Repurchase Transaction”), the Company reclassified $705 from investment in equity method affiliates and re-allocated it to certain balance sheet accounts to reflect Star Asia Manager becoming a consolidated subsidiary of the Company. See note 4 to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. On February 20, 2014, the Company completed the sale of the Company’s ownership interests in the Star Asia Group, including Star Asia Manager. See note 4. | |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||||
Related Party Transactions | ' | |||||||||||||||||
21. RELATED PARTY TRANSACTIONS | ||||||||||||||||||
The Company has identified the following related party transactions for the six and three months ended June 30, 2014 and 2013. The transactions are listed by related party and, unless otherwise noted in the text of the description, the amounts are disclosed in the tables at the end of this section. | ||||||||||||||||||
A. | Transactions between the Star Asia Group and the Company | |||||||||||||||||
Star Asia Manager serves as external manager of Star Asia and Star Asia Special Purpose Vehicle (“Star Asia SPV”) (see paragraphs A-1 and E-3 below). The Company owned 50% of Star Asia Manager prior to the Star Asia Manager Repurchase Transaction. Following the March, 2013 Star Asia Manager Repurchase Transaction, the Company owned 100% of Star Asia Manager and included Star Asia Manager in its consolidated financial statements (see note 4). Prior to March 1, 2013, Star Asia Manager had been identified as a related party because it was an equity method investee of the Company. The Company had recognized its share of the income or loss of Star Asia Manager as income or loss from equity method affiliates in the consolidated statements of operations during the pre-acquisition period. Income or loss recognized under the equity method is disclosed in the table at the end of this section. | ||||||||||||||||||
Effective February 20, 2014, the Company sold its interest in Star Asia, Star Asia Special Situations Fund, Star Asia Capital Management, Star Asia Manager, SAA Manager, and SAP GP. The Company recognized a gain on the sale in amount of $78, which is included as a component of principal transactions and other income in the Company’s consolidated statements of operations. | ||||||||||||||||||
Prior to February 20, 2014, the Star Asia Group entities were identified as related parties. The amounts with respect to the transactions identified below are summarized in a table at the end of this section. | ||||||||||||||||||
1. Star Asia invests primarily in Asian commercial real estate structured finance products, including CMBS, corporate debt of REITs and real estate operating companies, whole loans, mezzanine loans and other commercial real estate fixed income investments, and in real property in Japan. As of December 31, 2013, the Company directly owned approximately 28% of Star Asia’s outstanding shares. Star Asia had been identified as a related party because in the absence of the fair value option of FASB ASC 825, Star Asia would have been treated as an equity method affiliate, and because Daniel G. Cohen, the Vice Chairman of the Company’s Board of Directors and of the board of managers of the Operating LLC, President and Chief Executive Officer of the Company’s European Business, and President of CCFL (formerly the Company’s Chairman and Chief Executive Officer) was a member of Star Asia’s board of directors until the sale of the entity on February 20, 2014. The Company, through Star Asia Manager, had an asset management contract with Star Asia. Gains or losses recognized from its investment for the six and three months ended June 30, 2013 are disclosed as part of principal transactions in the tables at the end of this section. Amounts earned from the management contract are disclosed as part of management fee revenue in the tables at the end of this section. | ||||||||||||||||||
2. Star Asia Capital Management serves as the external manager of Star Asia Opportunity (see paragraph E-4 below) and the Company owned 33% of Star Asia Capital Management as of December 31, 2013. Star Asia Capital Management had been identified as a related party because it was an equity method investee of the Company. The Company recognized its share of the income or loss of Star Asia Capital Management as income or loss from equity method affiliates in the consolidated statements of operations. Income or loss recognized under the equity method is disclosed in the table at the end of this section. On February 20, 2014, the Company completed the sale of its interests in the Star Asia Group, including Star Asia Capital Management. | ||||||||||||||||||
3. In December 2012, the Company, along with two other parties, sponsored the creation of a new investment fund. The Star Asia Special Situations Fund, which primarily invests in real estate and securities backed by real estate in Japan. The Star Asia Special Situations Fund is a closed-end fund that does not offer investor redemptions. It has an initial life of three years, which can be extended under certain circumstances for a total of two years. The Star Asia Special Situations Fund consummated its closing on December 20, 2012. As of December 31, 2013, the Company owned approximately 2% of the Star Asia Special Situations Fund. The Star Asia Special Situations Fund had been identified as a related party because in the absence of the fair value option of FASB ASC 825, the Company’s investment in the Star Asia Special Situations Fund would be treated as an equity method affiliate of the Company. Gains and losses recognized from its investment are disclosed as part of principal transactions in the tables at the end of this section. | ||||||||||||||||||
During the three months ended March 31, 2013, the Company made an additional investment of $302 in the Star Asia Special Situations Fund. See notes 6 and 7. On February 20, 2014, the Company completed the sale of its interest in the Star Asia Group, including the Star Asia Special Situations Fund. | ||||||||||||||||||
4. SAA Manager serves as the external manager of the Star Asia Special Situations Fund. The Company owned 33% of SAA Manager as of December 31, 2013. SAA Manager had been identified as a related party because it is an equity method investee of the Company. The Company did not elect the fair value option for its investment in SAA Manager. Income or loss recognized under the equity method is disclosed in the table at the end of this section. On February 20, 2014, the Company completed the sale of its interest in the Star Asia Group, including SAA Manager. | ||||||||||||||||||
5. SAP GP serves as the general partner for the Star Asia Special Situations Fund. As of December 31, 2013, Company owned 33% of SAP GP. SAP GP has been identified as a related party because it is an equity method investee of the Company. The Company did not elect the fair value option for its investment in SAP GP. Income or loss recognized under the equity method is disclosed in the table at the end of this section. Since its inception during the fourth quarter of 2012 and through its sale on February 20, 2014, the Company had not made an investment or recognized any income or loss under the equity method. | ||||||||||||||||||
B. Cohen Bros. Financial, LLC (“CBF”) and EBC 2013 Family Trust (“EBC”) | ||||||||||||||||||
In September 2013, EBC, as an assignee of CBF, made a $4,000 investment in the Company. Daniel G. Cohen is a trustee of EBC. The Company issued $2,400 in principal amount of the 8.0% Convertible Notes to EBC. See paragraph D listed below and notes 4 and 17 to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Company incurred interest expense on this debt which is disclosed as part of interest expense incurred in the tables at the end of this section. | ||||||||||||||||||
CBF has been identified as a related party because (i) CBF is a non-controlling interest of the Company and (ii) CBF is wholly owned by Mr. Cohen. | ||||||||||||||||||
C. The Bancorp, Inc. | ||||||||||||||||||
The Bancorp, Inc. (“TBBK”) is identified as a related party because Mr. Cohen is TBBK’s Chairman. | ||||||||||||||||||
TBBK maintained deposits for the Company in the amount of $74 and $52 as of June 30, 2014 and December 31, 2013, respectively. These amounts are not disclosed in the tables at the end of this section. | ||||||||||||||||||
As part of the Company’s broker-dealer operations, the Company from time to time purchases securities from third parties and sells those securities to TBBK. The Company may purchase securities from TBBK and ultimately sell those securities to third parties. In either of the cases listed above, the Company includes the trading revenue earned (i.e. the gain or loss realized, or commission earned) by the Company for the entire transaction in the amounts disclosed as part of net trading in the table at the end of this section. | ||||||||||||||||||
From time to time, the Company will enter into repurchase agreements with TBBK as its counterparty. As of June 30, 2014 and December 31, 2013, the Company had repurchase agreements in the amount of $15,911 and $6,445, respectively, with TBBK as its counterparty. This is included as a component of securities sold under agreement to repurchase in the consolidated balance sheet. The Company incurred interest expense related to repurchase agreements with TBBK as its counterparty in the amount of $191 and $85 for the six and three months ended June 30, 2014, respectively, and $93 and $74 for the six and three months ended June 30, 2013, respectively, which was included as a component of net trading revenue in the Company’s consolidated statements of operations. These amounts are not disclosed in the tables at the end this section. | ||||||||||||||||||
D. Investment in IFMI by Mead Park Capital Partners LLC (“Mead Park Capital”) | ||||||||||||||||||
In September 2013, Mead Park Capital made a $9,746 investment in the Company. The Company issued $5,848 in principal amount of the 8.0% Convertible Notes to Mead Park Capital. Mead Park Capital is a vehicle advised by Mead Park Advisors LLC (“Mead Park”) (a registered investment advisor) and controlled by Jack J. DiMaio Jr., Chief Executive Officer and founder of Mead Park. In connection with the September 25, 2013 closing of the transactions contemplated by the definitive agreements relating to Mead Park Capital’s investment in the Company, Messrs. DiMaio and Ricciardi were elected to the Company’s Board of Directors. Mr. DiMaio was also named the Chairman of the Company’s Board of Directors. See notes 4 and 17 to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Company incurred interest expense on this debt which is disclosed as part of interest expense incurred in the table at the end of this section. | ||||||||||||||||||
E. Investment Vehicles and Other | ||||||||||||||||||
The entities below are identified as related parties. Amounts with respect to the transactions identified below are summarized in a table at the end of this section. | ||||||||||||||||||
1. EuroDekania invests primarily in hybrid capital securities of European bank and insurance companies, CMBS, RMBS and widely syndicated leverage loans. EuroDekania’s investments are denominated in Euros or British Pounds Sterling. As of June 30, 2014 and December 31, 2013, the Company directly owned approximately 17% of EuroDekania’s outstanding shares. On December 18, 2013, as a cost savings measure, EuroDekania was restructured from a Guernsey closed end fund to a Cayman Islands exempted company. The Company has determined EuroDekania has been identified as a related party because Daniel G. Cohen was a member of EuroDekania’s board of directors from its inception through December 18, 2013, and (ii) in the absence of the fair value option of FASB ASC 825, EuroDekania would be treated as an equity method affiliate. The Company has a management contract with and an investment in EuroDekania. Gains or losses recognized from its investment and dividends received are disclosed as part of principal transactions in the tables at the end of this section. Amounts earned from its management contract are disclosed as part of management fee revenue in the tables at the end of this section. | ||||||||||||||||||
2. The Deep Value GP and Deep Value GP II served as the general partners for the Deep Value funds. The Deep Value GP and the Deep Value GP II are collectively referred to as the “Deep Value GPs.” Prior to their liquidation in 2013, the Company owned 50% of the Deep Value GP and 40% of the Deep Value GP II. The Deep Value GP and the Deep Value GP II have been identified as related parties because the Deep Value GPs are equity method affiliates of the Company. During the third quarter of 2013, the Company received its final liquidating distribution from the Deep Value GP. During the fourth quarter of 2013, the Company received its final liquidating distribution from Deep Value GP II. Income or loss recognized under the equity method is disclosed in the table at the end of this section. | ||||||||||||||||||
3. Star Asia SPV is a Delaware limited liability company formed in 2010. It was formed to create a pool of assets that would provide collateral to investors who participated in Star Asia’s 2010 rights offering. The investors in Star Asia’s rights offering also received equity interests in Star Asia SPV. Star Asia SPV purchased certain assets from Star Asia and the equity interest holders of Star Asia SPV receive investment returns on the assets held in the Star Asia SPV up to an agreed upon maximum. Returns above that agreed upon maximum are remitted back to Star Asia. During the second quarter of 2013, the Company received its investment return up to an agreed upon maximum from Star Asia SPV and the Company no longer has an ownership interest in the entity. Star Asia SPV has been identified as a related party because it was an equity method investee of the Company. Income or loss recognized under the equity method is disclosed in the table at the end of this section. | ||||||||||||||||||
4. Star Asia Opportunity is a Delaware limited liability company formed in July 2011 to partially finance the acquisition of seven real estate properties in Japan. As of December 31, 2013, the Company directly owned approximately 28% of Star Asia Opportunity’s outstanding equity interests. During the second quarter of 2014, the Company received its final liquidating distribution from Star Asia Opportunity. Star Asia Opportunity has been identified as a related party because it was an equity method investee of the Company. The Company recognized its share of the income or loss of Star Asia Opportunity as income or loss from equity method affiliates in the consolidated statements of operations. Income or loss recognized under the equity method is disclosed in the table at the end of this section. | ||||||||||||||||||
The following tables display the routine intercompany transactions recognized in the statements of operations from the identified related parties that are described above. | ||||||||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||
Management fee revenue | Net trading | Principal transactions | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||||
TBBK | $ | - | $ | 23 | $ | $ | - | $ | - | $ | - | |||||||
Star Asia (1) | 125 | - | - | - | - | |||||||||||||
Star Asia Capital Management (1) | - | - | - | 13 | - | |||||||||||||
SAA Manager (1) | - | - | - | 14 | - | |||||||||||||
EuroDekania | - | - | 1,444 | - | - | |||||||||||||
EBC | - | - | - | - | 111 | |||||||||||||
Mead Park Capital | - | - | - | - | 270 | |||||||||||||
$ | 125 | $ | 23 | $ | $ | 1,444 | $ | 27 | $ | 381 | ||||||||
(1) Effective February 20, 2014, the Company sold its interest in these entities. See note A from above and note 4. | ||||||||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||
Management fee revenue | Net trading | Principal transactions | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||||
TBBK | - | 401 | - | - | - | |||||||||||||
Star Asia (1) | 1,069 | - | -9,234 | - | - | |||||||||||||
Star Asia Manager (1) (2) | - | - | - | 158 | - | |||||||||||||
Star Asia SPV | - | - | - | 1,287 | - | |||||||||||||
Star Asia Opportunity | - | - | - | -5 | - | |||||||||||||
Star Asia Capital Management (1) | - | - | - | 71 | - | |||||||||||||
Star Asia Special Situations Fund (1) | - | - | -30 | - | - | |||||||||||||
SAA Manager (1) | - | - | - | 109 | - | |||||||||||||
EuroDekania | - | - | 381 | - | - | |||||||||||||
Deep Value GPs | - | - | - | -6 | - | |||||||||||||
$ | 1,069 | $ | 401 | $ | $ | -8,883 | $ | 1,614 | $ | - | ||||||||
-1 | Effective February 20, 2014, the Company sold its interest in this entity. See paragraph A from above and note 4. | |||||||||||||||||
(2) Beginning March 1, 2013, Star Asia Manager was consolidated by the Company as a result of the Star Asia Manager Repurchase Transaction. Prior to March 1, 2013, Star Asia Manager was treated as an equity method investment. See paragraph A above. | ||||||||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||
Management fee revenue | Net trading | Principal transactions | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||||
TBBK | $ | - | $ | 1 | $ | $ | - | $ | - | $ | - | |||||||
Star Asia Opportunity | - | - | - | 1 | - | |||||||||||||
EuroDekania | - | - | 313 | - | - | |||||||||||||
EBC | - | - | - | - | 56 | |||||||||||||
Mead Park Capital | - | - | - | - | 136 | |||||||||||||
$ | - | $ | 1 | $ | $ | 313 | $ | 1 | $ | 192 | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||
Management fee revenue | Net trading | Principal transactions | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||||
TBBK | $ | - | $ | 375 | $ | $ | - | $ | - | $ | - | |||||||
Star Asia (1) | 792 | - | -3,201 | - | - | |||||||||||||
Star Asia SPV | - | - | - | -27 | - | |||||||||||||
Star Asia Opportunity | - | - | - | 1 | - | |||||||||||||
Star Asia Capital Management (1) | - | - | - | 37 | - | |||||||||||||
Star Asia Special Situations Fund (1) | - | - | -73 | - | - | |||||||||||||
SAA Manager (1) | - | - | - | 86 | - | |||||||||||||
EuroDekania | - | - | 41 | - | - | |||||||||||||
Deep Value GPs | - | - | - | -2 | - | |||||||||||||
$ | 792 | $ | 375 | $ | $ | -3,233 | $ | 95 | $ | - | ||||||||
-1 | Effective February 20, 2014, the Company sold its interest in this entity. See paragraph A from above and note 4. | |||||||||||||||||
The following related party transactions are non-routine and are not included in the tables above. | ||||||||||||||||||
F. Directors and Employees | ||||||||||||||||||
In addition to the employment agreements the Company has entered into with Daniel G. Cohen, its Vice Chairman; Lester R. Brafman, its Chief Executive Officer; and Joseph W. Pooler, Jr., its Chief Financial Officer, the Company has entered into its standard indemnification agreement with each of its directors and executive officers. | ||||||||||||||||||
Due_From_Due_To_Related_Partie
Due From / Due To Related Parties | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Due From / Due To Related Parties [Abstract] | ' | ||||||
Due From / Due To Related Parties | ' | ||||||
22. DUE FROM / DUE TO RELATED PARTIES | |||||||
The following table summarizes the outstanding due from / to related parties. These amounts may result from normal operating advances or from timing differences between the transactions disclosed in note 21 and final settlement of those transactions in cash. All amounts are primarily non-interest bearing. | |||||||
DUE FROM/DUE TO RELATED PARTIES | |||||||
(Dollars in Thousands) | |||||||
30-Jun-14 | 31-Dec-13 | ||||||
EuroDekania | $ | - | $ | 18 | |||
Star Asia and related entities (1) | - | 450 | |||||
CBF | - | 4 | |||||
Employees | 349 | 411 | |||||
Due from Related Parties | $ | 349 | $ | 883 | |||
(1) Related entities include Star Asia Capital Management and SAA Manager. | |||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Adoption Of New Accounting Standards | ' |
A. Adoption of New Accounting Standards | |
In February 2013, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date, which requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date, as the sum of the following: (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors; and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. Examples of obligations within the scope of this ASU include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The guidance in this ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments in this ASU should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU’s scope that exist at the beginning of the entity’s fiscal year of adoption. An entity may elect to use hindsight for the comparative periods presented in the initial year of adoption (if it changed its accounting as a result of adopting the guidance) and shall disclose that fact. The use of hindsight would allow an entity to recognize, measure, and disclose obligations resulting from joint and several liability arrangements within the scope of this ASU in comparative periods using information available at adoption rather than requiring an entity to make judgments about what information it had in each of the prior periods to measure the obligation. Early adoption is permitted. The Company adopted the provisions of ASU 2013-04 effective January 1, 2014 and the adoption of the provisions did not have an effect on the Company’s consolidated financial position and results of operations. | |
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity, which addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. When a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. For an equity method investment that is a foreign entity, the partial sale guidance in Section 830-30-40 still applies, specifically, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. However, this treatment does not apply to an equity method investment that is not a foreign entity. In those instances, the cumulative translation adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. Additionally, the amendments in this ASU clarify that the sale of an investment in a foreign entity includes both (1) events that result in the loss of a controlling financial interest in a foreign entity (that is, irrespective of any retained investment) and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes referred to as a step acquisition). Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. For public entities, the ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The Company adopted the provisions of ASU 2013-05 effective January 1, 2014, and the adoption of the provisions did not have an effect on the Company’s consolidated financial statements or financial statement disclosures. | |
In June 2013, the FASB issued ASU No. 2013-08, Financial Services-Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements, which changes the approach to the investment company assessment in Topic 946, clarifies the characteristics of an investment company, and provides comprehensive guidance for assessing whether an entity is an investment company. The amendments require an investment company to measure non-controlling ownership interests in other investment companies at fair value rather than using the equity method of accounting. The amendments also require the following additional disclosures: (a) the fact that the entity is an investment company and is applying the guidance in Topic 946, (b) information about changes, if any, in an entity’s status as an investment company, and (c) information about financial support provided or contractually required to be provided by an investment company to any of its investees. The amendments in this ASU are effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company has investments in the equity securities of investment funds and other non-publicly traded entities that have the attributes of investment companies as currently described in FASB ASC 946-15-2. The Company adopted the provisions of this ASU effective January 1, 2014, and the adoption of the provisions did not have an effect on the Company’s consolidated financial position and results of operations. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides guidance on the presentation of unrecognized tax benefits. This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows: to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU is effective prospectively for reporting periods beginning after December 15, 2013, with early adoption permitted. The Company adopted the provisions of this ASU effective January 1, 2014, and the adoption of the provisions did not have an effect on the Company’s consolidated statements. | |
Fair Value of Financial Instruments | ' |
B. Fair Value of Financial Instruments | |
The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments. These determinations were based on available market information and appropriate valuation methodologies. Considerable judgment is required to interpret market data to develop the estimates and, therefore, these estimates may not necessarily be indicative of the amount the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Refer to note 7 for a discussion of the fair value hierarchy with respect to investments-trading, other investments, at fair value and the derivatives held by the Company. | |
Cash and cash equivalents: Cash is carried at historical cost, which is assumed to approximate fair value. The estimated fair value measurement of cash and cash equivalents is classified within level 1 of the valuation hierarchy. | |
Investments-trading: These amounts are carried at fair value. The fair value is based on either quoted market prices of an active exchange, independent broker market quotations, market price quotations from third party pricing services, or valuation models when quotations are not available. See note 7 for disclosures about the categorization of the fair value measurements of investments-trading within the three level fair value hierarchy. | |
Other investments, at fair value: These amounts are carried at fair value. The fair value is based on quoted market prices of an active exchange, independent broker market quotations, or valuation models when quotations are not available. In the case of investments in alternative investment funds, fair value is generally based on the reported net asset value of the underlying fund. See note 7 for disclosures concerning the categorization of the fair value measurements of other investments, at fair value within the three level fair value hierarchy. | |
Receivables under resale agreements: Receivables under resale agreements are carried at their contracted resale price, have short-term maturities, and are repriced frequently or bear market interest rates and, accordingly, these contracts are at amounts that approximate fair value. The estimated fair value measurements of receivables under resale agreements are based on observations of actual market activity and are generally classified within level 2 of the fair value hierarchy. | |
Trading securities sold, not yet purchased: These amounts are carried at fair value. The fair value is based on quoted market prices of an active exchange, independent market quotations, market price quotations from third party pricing services, or valuation models when quotations are not available. See note 7 for disclosures concerning the categorization of the fair value measurements of trading securities sold, not yet purchased within the three level fair value hierarchy. | |
Securities sold under agreement to repurchase: The liabilities for securities sold under agreement to repurchase are carried at their contracted repurchase price, have short-term maturities, and are repriced frequently with amounts normally due in one month or less and, accordingly, these contracts are at amounts that approximate fair value. The estimated fair value measurements of securities sold under agreement to repurchase are based on observations of actual market activity and are generally classified within level 2 of the fair value hierarchy. | |
Debt: These amounts are carried at outstanding principal less unamortized discount. However, a substantial portion of the debt was assumed in the Merger and recorded at fair value as of that date. As of June 30, 2014 and December 31, 2013, the fair value of the Company’s debt was estimated to be $40.5 million and $40.2 million, respectively. The estimated fair value measurements of the debt are generally based on discounted cash flow models prepared by the Company’s management primarily using discount rates for similar instruments issued to companies with similar credit risks to the Company and are generally classified within level 3 of the fair value hierarchy. | |
Derivatives: These amounts are carried at fair value. Derivatives may be included as a component of investments-trading; trading securities sold, not yet purchased; and other investments, at fair value. See notes 7 and 8. The fair value is generally based on quoted market prices on an exchange that is deemed to be active for derivative instruments such as foreign currency forward contracts. For derivative instruments, such as TBAs, the fair value is generally based on market price quotations from third party pricing services. See note 7 for disclosures concerning the categorization of the fair value measurements within the three level fair value hierarchy. | |
Recent Accounting Developments | ' |
C. Recent Accounting Developments | |
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for reporting discontinued operations and requires additional disclosures about discontinued operations. The guidance in this ASU raises the threshold for a disposal to qualify as a discontinued operation and certain other disposals that do not meet the definition of a discontinued operation. Under the new provisions, only disposals representing a strategic shift in operations - that is or will have a major effect on an entity’s operations and financial results should be presented as a discontinued operation. Examples include a disposal of a major line of business, a major geographical area, a major equity method investment, or other major parts of an entity. The new provisions also require new disclosures related to individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following the disposal date and retained equity method investments in a discontinued operation. The provisions of this ASU are effective for annual periods beginning on or after December 15, 2014 and interim periods within that year. The ASU is applied prospectively. Early adoption is permitted but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued. The Company will adopt the provisions of this ASU effective January 1, 2015 and is currently evaluating the new guidance to determine the impact it may have to its consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which replaces existing revenue recognition guidance in Topic 605, Revenue Recognition, replaces certain other industry-specific revenue recognition guidance, specifies the accounting for certain costs to obtain or fulfill a contract with a customer and provides recognition and measurement guidance in relation to sales of non-financial assets. The core principle of this ASU is to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU provides guidance on how to achieve this core principle, including how to identify contracts with customers and separate performance obligations in the contract, how to determine and allocate the transaction price to such performance obligations and how to recognize revenue when a performance obligation has been satisfied. The ASU is effective for annual reporting periods, and interim periods within those reporting periods, beginning after December 15, 2016 with early adoption prohibited. The Company will be required to apply the amendments in this ASU using one of the following two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the ASU; or (ii) retrospective with the cumulative effect of initially applying the ASU recognized at the date of the initial application and providing certain additional disclosures as defined in the ASU. The Company will adopt the provisions of this ASU effective January 1, 2017 and is currently evaluating the new guidance to determine the impact it will have on the Company’s consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860): Repurchase to Maturity Transactions, Repurchase Financings, and Disclosures, which changes the accounting for repurchase-to-maturity transactions which are repurchase agreements where the maturity of the security transferred as collateral matches the maturity of the repurchase agreement. According to the new guidance, all repurchase-to-maturity transactions will be accounted for as secured borrowing transactions in the same way as other repurchase agreements rather than as sales of a financial asset and forward commitment to repurchase. The amendments also change the accounting for repurchase financing arrangements which are transactions involving the transfer of a financial asset to a counterparty executed contemporaneously with a reverse repurchase agreement with the same counterparty. Under the new guidance, all repurchase financings will now be accounted for separately, which will result in secured lending accounting for the reverse repurchase agreement. The guidance also requires new disclosures about transfers that are accounted for as sales in transactions that are economically similar to repurchase agreements and increased transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2014 with early adoption prohibited. An entity will be required to present changes in accounting for all outstanding repurchase-to-maturity transactions and repurchase financing arrangements as a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The disclosures for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The Company will adopt the provisions of this ASU effective January 1, 2015 and is currently evaluating the new guidance to determine the impact it will have on the Company’s consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, which requires a performance target that affects vesting and that could be achieved after the requisite service period be accounted for as a performance condition rather than as a non-vesting condition that affects the grant-date fair value of the award. A reporting entity should apply existing guidance in Topic 718, Compensation-Stock Compensation, as it relates to such awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015 with early adoption permitted using either of two methods: (i) prospective to all awards granted or modified after the effective date; or (ii) retrospective to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter, with the cumulative effective applying this ASU as an adjustment to the opening retained earnings balance as of the beginning of the earliest annual period presented in the financial statements. The Company will adopt the provisions of this ASU effective January 1, 2016 and is currently evaluating the new guidance to determine the impact, if any, that it will have on the Company’s consolidated financial statements. | |
Receivables_From_And_Payables_1
Receivables From And Payables To Brokers, Dealers, And Clearing Agencies (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Receivables from and Payables to Brokers, Dealers, and Clearing Agencies [Abstract] | ' | ||||||
Schedule Of Due To (From) Broker-Dealers And Clearing Organizations | ' | ||||||
Amounts receivable from brokers, dealers, and clearing agencies consisted of the following at June 30, 2014 and December 31, 2013, respectively. | |||||||
RECEIVABLES FROM BROKERS, DEALERS AND CLEARING AGENCIES | |||||||
(Dollars in Thousands) | |||||||
30-Jun-14 | 31-Dec-13 | ||||||
Deposits with clearing organizations | $ | 1,348 | $ | 1,428 | |||
Receivable from clearing organizations | 295 | 418 | |||||
Receivables from brokers, dealers, and clearing agencies | $ | 1,643 | $ | 1,846 | |||
Receivable from clearing organizations represents un-invested cash held by the clearing organization, which includes cash proceeds from short sales. | |||||||
Amounts payable to brokers, dealers, and clearing agencies consisted of the following at June 30, 2014 and December 31, 2013, respectively. | |||||||
PAYABLES TO BROKERS, DEALERS AND CLEARING AGENCIES | |||||||
(Dollars in Thousands) | |||||||
30-Jun-14 | 31-Dec-13 | ||||||
Unsettled regular way trades, net | $ | 7,949 | $ | 5,600 | |||
Margin payable | 20,682 | 25,111 | |||||
Payables to brokers, dealers, and clearing agencies | $ | 28,631 | $ | 30,711 | |||
Financial_Instruments_Tables
Financial Instruments (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Financial Instruments [Abstract] | ' | |||||||||
Schedule Of Trading Securities | ' | |||||||||
INVESTMENTS - TRADING | ||||||||||
(Dollars in Thousands) | ||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||
U.S. government agency MBS and CMOs (1) | $ | 7,112 | $ | 13,520 | ||||||
U.S. government agency debt securities | 42,806 | 32,213 | ||||||||
RMBS | 414 | 1,584 | ||||||||
CMBS | 137 | - | ||||||||
U.S. Treasury securities | 200 | 764 | ||||||||
CLOs | 1,931 | 186 | ||||||||
Other ABS | 541 | 268 | ||||||||
SBA loans | 9,168 | 27,719 | ||||||||
Corporate bonds and redeemable preferred stock | 27,949 | 23,562 | ||||||||
Foreign government bonds | 154 | 88 | ||||||||
Municipal bonds | 16,293 | 16,024 | ||||||||
Exchange traded funds | - | 6 | ||||||||
Certificates of deposit | 7,357 | 1,648 | ||||||||
Equity securities | 65 | 36 | ||||||||
Investments-trading | $ | 114,127 | $ | 117,618 | ||||||
(1)Includes TBAs. See note 8. | ||||||||||
Schedule Of Trading Securities Sold, Not Yet Purchased | ' | |||||||||
TRADING SECURITIES SOLD, NOT YET PURCHASED | ||||||||||
(Dollars in Thousands) | ||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||
U.S. government agency MBS (1) | $ | 11 | $ | 121 | ||||||
U.S. Treasury securities | 40,514 | 38,066 | ||||||||
Corporate bonds and redeemable preferred stock | 14,189 | 10,679 | ||||||||
Foreign government bonds | - | 26 | ||||||||
Municipal bonds | 25 | 88 | ||||||||
Certificates of deposit | - | 524 | ||||||||
Trading securities sold, not yet purchased | $ | 54,739 | $ | 49,504 | ||||||
(1)Represents TBAs. See note 8. | ||||||||||
Schedule Of Other Investments | ' | |||||||||
OTHER INVESTMENTS, AT FAIR VALUE | ||||||||||
(Dollars in Thousands) | ||||||||||
30-Jun-14 | ||||||||||
Cost | Carrying Value | Unrealized Gain(Loss) | ||||||||
CLOs | $ | 18,809 | $ | 18,793 | $ | -16 | ||||
CDOs | 217 | 39 | -178 | |||||||
Equity Securities: | ||||||||||
EuroDekania | 7,432 | 4,290 | -3,142 | |||||||
Tiptree Financial Partners, L.P. ("Tiptree") | 5,561 | 2,705 | -2,856 | |||||||
Other securities | 176 | 32 | -144 | |||||||
Total equity securities | 13,169 | 7,027 | -6,142 | |||||||
Residential loans | 138 | 587 | 449 | |||||||
Other investments, at fair value | $ | 32,333 | $ | 26,446 | $ | -5,887 | ||||
31-Dec-13 | ||||||||||
Cost | Carrying Value | Unrealized Gain(Loss) | ||||||||
CDOs | $ | 217 | $ | 35 | $ | -182 | ||||
Equity Securities: | ||||||||||
EuroDekania | 8,778 | 4,192 | -4,586 | |||||||
Star Asia (1) | 23,304 | 17,104 | -6,200 | |||||||
Star Asia Special Situations Fund (1) | 1,933 | 2,747 | 814 | |||||||
Tiptree | 5,561 | 2,282 | -3,279 | |||||||
Other securities | 176 | 33 | -143 | |||||||
Total equity securities | 39,752 | 26,358 | -13,394 | |||||||
Residential loans | 154 | 294 | 140 | |||||||
Foreign currency forward contracts | - | 190 | 190 | |||||||
Other investments, at fair value | $ | 40,123 | $ | 26,877 | $ | -13,246 | ||||
(1) On February 20, 2014, the Company completed the sale of the Company's ownership interests in the Star Asia Group. See note 4. | ||||||||||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | ' | ||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS ON A RECURRING BASIS | |||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Significant | Significant | ||||||||||||||||||||||||||||
Quoted Prices in | Other Observable | Unobservable | |||||||||||||||||||||||||||
Active Markets | Inputs | Inputs | |||||||||||||||||||||||||||
Assets: | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Investments-trading: | |||||||||||||||||||||||||||||
U.S. government agency MBS and CMOs | $ | 7,112 | $ | - | $ | 7,112 | $ | - | |||||||||||||||||||||
U.S. government agency debt securities | 42,806 | - | 42,806 | - | |||||||||||||||||||||||||
RMBS | 414 | - | 414 | - | |||||||||||||||||||||||||
CMBS | 137 | - | 137 | - | |||||||||||||||||||||||||
U.S. Treasury securities | 200 | 200 | - | - | |||||||||||||||||||||||||
CLOs | 1,931 | - | 1,931 | - | |||||||||||||||||||||||||
Other ABS | 541 | - | 541 | - | |||||||||||||||||||||||||
SBA loans | 9,168 | - | 9,168 | - | |||||||||||||||||||||||||
Corporate bonds and redeemable preferred stock | 27,949 | - | 27,949 | - | |||||||||||||||||||||||||
Foreign government bonds | 154 | - | 154 | - | |||||||||||||||||||||||||
Municipal bonds | 16,293 | - | 16,293 | - | |||||||||||||||||||||||||
Certificates of deposit | 7,357 | - | 7,357 | - | |||||||||||||||||||||||||
Equity securities | 65 | 55 | 10 | - | |||||||||||||||||||||||||
Total investments - trading | $ | 114,127 | $ | 255 | $ | 113,872 | $ | - | |||||||||||||||||||||
Other investments, at fair value | |||||||||||||||||||||||||||||
EuroDekania (1) | $ | 4,290 | $ | - | $ | - | $ | 4,290 | |||||||||||||||||||||
Tiptree (2) | 2,705 | - | 2,705 | - | |||||||||||||||||||||||||
Other equity securities | 32 | 23 | 9 | - | |||||||||||||||||||||||||
CLOs | 18,793 | - | - | 18,793 | |||||||||||||||||||||||||
CDOs | 39 | - | - | 39 | |||||||||||||||||||||||||
Residential loans | 587 | - | 587 | - | |||||||||||||||||||||||||
Total other investments, at fair value | $ | 26,446 | $ | 23 | $ | 3,301 | $ | 23,122 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Trading securities sold, not yet purchased: | |||||||||||||||||||||||||||||
U.S. government agency MBS | $ | 11 | $ | - | $ | 11 | $ | - | |||||||||||||||||||||
U.S. Treasury securities | 40,514 | 40,514 | - | - | |||||||||||||||||||||||||
Corporate bonds and redeemable preferred stock | 14,189 | - | 14,189 | - | |||||||||||||||||||||||||
Municipal bonds | 25 | - | 25 | - | |||||||||||||||||||||||||
Total trading securities sold, not yet purchased | $ | 54,739 | $ | 40,514 | $ | 14,225 | $ | - | |||||||||||||||||||||
(1)Hybrid Securities Fund—European. | |||||||||||||||||||||||||||||
(2)Diversified Holding Company. | |||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS ON A RECURRING BASIS | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Significant | Significant | ||||||||||||||||||||||||||||
Quoted Prices in | Other Observable | Unobservable | |||||||||||||||||||||||||||
Active Markets | Inputs | Inputs | |||||||||||||||||||||||||||
Assets: | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Investments-trading: | |||||||||||||||||||||||||||||
U.S. government agency MBS and CMOs | $ | 13,520 | $ | - | $ | 13,520 | $ | - | |||||||||||||||||||||
U.S. government agency debt securities | 32,213 | 45 | 32,168 | - | |||||||||||||||||||||||||
RMBS | 1,584 | - | 1,584 | - | |||||||||||||||||||||||||
U.S. Treasury securities | 764 | 764 | - | - | |||||||||||||||||||||||||
CLOs | 186 | - | - | 186 | |||||||||||||||||||||||||
Other ABS | 268 | - | 268 | - | |||||||||||||||||||||||||
SBA loans | 27,719 | - | 27,719 | - | |||||||||||||||||||||||||
Corporate bonds and redeemable preferred stock | 23,562 | 2,973 | 20,589 | - | |||||||||||||||||||||||||
Foreign government bonds | 88 | - | 88 | - | |||||||||||||||||||||||||
Municipal bonds | 16,024 | - | 16,024 | - | |||||||||||||||||||||||||
Exchange traded funds | 6 | 6 | - | - | |||||||||||||||||||||||||
Certificates of deposit | 1,648 | - | 1,648 | - | |||||||||||||||||||||||||
Equity securities | 36 | 16 | 20 | - | |||||||||||||||||||||||||
Total investments - trading | $ | 117,618 | $ | 3,804 | $ | 113,628 | $ | 186 | |||||||||||||||||||||
Other investments, at fair value | |||||||||||||||||||||||||||||
EuroDekania (1) | $ | 4,192 | $ | - | $ | - | $ | 4,192 | |||||||||||||||||||||
Star Asia (2) | 17,104 | - | - | 17,104 | |||||||||||||||||||||||||
Tiptree (3) | 2,282 | - | 2,282 | - | |||||||||||||||||||||||||
Star Asia Special Situations Fund (2) | 2,747 | - | - | 2,747 | |||||||||||||||||||||||||
Other equity securities | 33 | 23 | 10 | - | |||||||||||||||||||||||||
CDOs | 35 | - | - | 35 | |||||||||||||||||||||||||
Residential loans | 294 | - | 294 | - | |||||||||||||||||||||||||
Foreign currency forward contracts | 190 | 190 | - | - | |||||||||||||||||||||||||
Total other investments, at fair value | $ | 26,877 | $ | 213 | $ | 2,586 | $ | 24,078 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Trading securities sold, not yet purchased: | |||||||||||||||||||||||||||||
U.S. government agency MBS | $ | 121 | $ | - | $ | 121 | $ | - | |||||||||||||||||||||
U.S. Treasury securities | 38,066 | 38,066 | - | - | |||||||||||||||||||||||||
Corporate bonds and redeemable preferred stock | 10,679 | - | 10,679 | - | |||||||||||||||||||||||||
Foreign government bonds | 26 | - | 26 | - | |||||||||||||||||||||||||
Municipal bonds | 88 | - | 88 | - | |||||||||||||||||||||||||
Certificates of deposit | 524 | - | 524 | - | |||||||||||||||||||||||||
Total trading securities sold, not yet purchased | $ | 49,504 | $ | 38,066 | $ | 11,438 | $ | - | |||||||||||||||||||||
(1)Hybrid Securities Fund—European. | |||||||||||||||||||||||||||||
(2)Real Estate Fund—Asian. | |||||||||||||||||||||||||||||
(3)Diversified Holding Company. | |||||||||||||||||||||||||||||
Schedule Of Assets And Liabilities Measured With Level 3 Inputs | ' | ||||||||||||||||||||||||||||
LEVEL 3 INPUTS | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
31-Dec-13 | Net trading | Gains and losses (5) | Transfers out of Level 3 | Accretion of income ( 5) | Purchases | Sales and returns of capital | 30-Jun-14 | Change in unrealized gains /(losses) (1) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investments-trading | |||||||||||||||||||||||||||||
CLOs (2) | $ | 186 | $ | -3 | $ | - | $ | - | $ | - | $ | - | $ | -183 | $ | - | $ | - | |||||||||||
Total investments-trading | $ | 186 | $ | -3 | $ | - | $ | - | $ | - | $ | - | $ | -183 | $ | - | $ | - | |||||||||||
Other investments, at fair value: | |||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||
EuroDekania (3) | $ | 4,192 | $ | - | $ | 1,444 | $ | - | $ | - | $ | - | $ | -1,346 | $ | 4,290 | $ | 1,444 | |||||||||||
Star Asia (4) | 17,104 | - | 78 | - | - | - | -17,182 | - | - | ||||||||||||||||||||
Star Asia Japan Special Situations Fund (4) | 2,747 | - | - | - | - | - | -2,747 | - | - | ||||||||||||||||||||
Total equity securities | 24,043 | - | 1,522 | - | - | - | -21,275 | 4,290 | 1,444 | ||||||||||||||||||||
CLOs (2) | - | - | 6 | - | 249 | 20,819 | -2,281 | 18,793 | -16 | ||||||||||||||||||||
CDOs | 35 | - | 4 | - | - | - | - | 39 | 4 | ||||||||||||||||||||
Total other investments, fair value | $ | 24,078 | $ | - | $ | 1,532 | $ | - | $ | 249 | $ | 20,819 | $ | -23,556 | $ | 23,122 | $ | 1,432 | |||||||||||
(1)Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period. | |||||||||||||||||||||||||||||
(2)Sales in investments-trading include $133 of an investment in a CLO that was reclassified from investments-trading to other investments, at fair value, which is included in purchases in other investments, at fair value as of June 30, 2014. | |||||||||||||||||||||||||||||
(3)Hybrid Securities Funds—European. | |||||||||||||||||||||||||||||
(4)Real Estate Funds—Asian. | |||||||||||||||||||||||||||||
(5) Recorded as a component of principal transactions and other income in the consolidated statement of operations. | |||||||||||||||||||||||||||||
LEVEL 3 INPUTS | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
31-Dec-12 | Net trading | Gains and losses (5) | Transfers out of Level 3 | Accretion of income (5) | Purchases | Sales and returns of capital | 30-Jun-13 | Change in unrealized gains /(losses) (1) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investments-trading | |||||||||||||||||||||||||||||
CLOs | $ | 295 | $ | 36 | $ | - | $ | - | $ | - | $ | - | $ | -110 | $ | 221 | $ | -74 | |||||||||||
Total investments-trading | $ | 295 | $ | 36 | $ | - | $ | - | $ | - | $ | - | $ | -110 | $ | 221 | $ | -74 | |||||||||||
Other investments, at fair value: | |||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||
EuroDekania (2) | $ | 2,054 | $ | - | $ | -14 | $ | - | $ | - | $ | - | $ | - | $ | 2,040 | $ | -14 | |||||||||||
Star Asia (3) | 30,169 | - | -9,234 | - | - | - | - | 20,935 | -9,234 | ||||||||||||||||||||
Tiptree (4) | 2,834 | - | - | -2,834 | - | - | - | - | - | ||||||||||||||||||||
Star Asia Special Situations Fund (3) | 2,503 | - | -30 | - | - | 302 | - | 2,775 | -30 | ||||||||||||||||||||
Total equity securities | 37,560 | - | -9,278 | -2,834 | - | 302 | - | 25,750 | -9,278 | ||||||||||||||||||||
CDOs | 77 | - | -19 | - | - | - | - | 58 | -19 | ||||||||||||||||||||
Total other investments, fair value | $ | 37,637 | $ | - | $ | -9,297 | $ | -2,834 | $ | - | $ | 302 | $ | - | $ | 25,808 | $ | -9,297 | |||||||||||
(1) Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period. | |||||||||||||||||||||||||||||
(2)Hybrid Securities Funds—European. | |||||||||||||||||||||||||||||
(3)Real Estate Funds—Asian. | |||||||||||||||||||||||||||||
(4)Diversified Holding Company. | |||||||||||||||||||||||||||||
(5) Recorded as a component of principal transactions and other income in the consolidated statement of operations. | |||||||||||||||||||||||||||||
LEVEL 3 INPUTS | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
31-Mar-14 | Net trading | Gains and losses (4) | Transfers out of Level 3 | Accretion of income (4) | Purchases | Sales and returns of capital | 30-Jun-14 | Change in unrealized gains /(losses) (1) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investments-trading | |||||||||||||||||||||||||||||
CLOs (2) | $ | 134 | $ | 19 | $ | - | $ | - | $ | - | $ | - | $ | -153 | $ | - | $ | - | |||||||||||
Total investments-trading | $ | 134 | $ | 19 | $ | - | $ | - | $ | - | $ | - | $ | -153 | $ | - | $ | - | |||||||||||
Other investments, at fair value: | |||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||
EuroDekania (3) | $ | 3,997 | $ | - | $ | 313 | $ | - | $ | - | $ | - | $ | -20 | $ | 4,290 | $ | 313 | |||||||||||
Total equity securities | 3,997 | - | 313 | - | - | - | -20 | 4,290 | 313 | ||||||||||||||||||||
CLOs (2) | 7,109 | - | 6 | - | 205 | 13,754 | -2,281 | 18,793 | -16 | ||||||||||||||||||||
CDOs | 25 | - | 14 | - | - | - | - | 39 | 14 | ||||||||||||||||||||
Total other investments, fair value | $ | 11,131 | $ | - | $ | 333 | $ | - | $ | 205 | $ | 13,754 | $ | -2,301 | $ | 23,122 | $ | 311 | |||||||||||
(1)Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period. | |||||||||||||||||||||||||||||
(2)Sales in investments-trading include $133 of an investment in a CLO that was reclassified from investments-trading to other investments, at fair value, which is included in purchases in other investments, at fair value as of June 30, 2014. | |||||||||||||||||||||||||||||
(3)Hybrid Securities Funds—European. | |||||||||||||||||||||||||||||
(4) Recorded as a component of principal transactions and other income in the consolidated statement of operations. | |||||||||||||||||||||||||||||
LEVEL 3 INPUTS | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
31-Mar-13 | Net trading | Gains and losses (5) | Transfers out of Level 3 | Accretion of income (5) | Purchases | Sales and returns of capital | 30-Jun-13 | Change in unrealized gains /(losses) (1) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investments-trading | |||||||||||||||||||||||||||||
CLOs | $ | 259 | $ | 72 | $ | - | $ | - | $ | - | $ | - | $ | -110 | $ | 221 | $ | -38 | |||||||||||
Total investments-trading | $ | 259 | $ | 72 | $ | - | $ | - | $ | - | $ | - | $ | -110 | $ | 221 | $ | -38 | |||||||||||
Other investments, at fair value: | |||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||
EuroDekania (2) | $ | 2,394 | $ | - | $ | -354 | $ | - | $ | - | $ | - | $ | - | $ | 2,040 | $ | -354 | |||||||||||
Star Asia (3) | 24,136 | - | -3,201 | - | - | - | - | 20,935 | -3,201 | ||||||||||||||||||||
Tiptree (4) | 2,834 | - | - | -2,834 | - | - | - | - | - | ||||||||||||||||||||
Star Asia Special Situations Fund (3) | 2,848 | - | -73 | - | - | - | - | 2,775 | -73 | ||||||||||||||||||||
Total equity securities | 32,212 | - | -3,628 | -2,834 | - | - | - | 25,750 | -3,628 | ||||||||||||||||||||
CDOs | 82 | - | -24 | - | - | - | - | 58 | -24 | ||||||||||||||||||||
Total other investments, fair value | $ | 32,294 | $ | - | $ | -3,652 | $ | -2,834 | $ | - | $ | - | $ | - | $ | 25,808 | $ | -3,652 | |||||||||||
(1)Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period. | |||||||||||||||||||||||||||||
(2)Hybrid Securities Funds—European. | |||||||||||||||||||||||||||||
(3)Real Estate Funds—Asian. | |||||||||||||||||||||||||||||
(4)Diversified Holding Company. | |||||||||||||||||||||||||||||
(5) Recorded as a component of principal transactions and other income in the consolidated statement of operations. | |||||||||||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | ' | ||||||||||||||||||||||||||||
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Significant | Range of | ||||||||||||||||||||||||||||
Fair Value | Valuation | Unobservable | Weighted | Significant | |||||||||||||||||||||||||
30-Jun-14 | Technique | Inputs | Average | Inputs | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Other investments, at fair value | |||||||||||||||||||||||||||||
CLOs | $ | 18,793 | Discounted Cash Flow Model | Yield | 11.1% | 9.7% - 12.7% | |||||||||||||||||||||||
Duration (years) | 4.5 | 3.5 - 5.0 | |||||||||||||||||||||||||||
Default rate | 1.0% | 1.0% - 3.5% | |||||||||||||||||||||||||||
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Significant | Range of | ||||||||||||||||||||||||||||
Fair Value | Valuation | Unobservable | Weighted | Significant | |||||||||||||||||||||||||
31-Dec-13 | Technique | Inputs | Average | Inputs | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Other investments, at fair value | |||||||||||||||||||||||||||||
Star Asia | $ | 17,104 | Allocated sale price | Relative fair value of assets sold | 77.3% | 74.9% - 79.1% | |||||||||||||||||||||||
Star Asia Special Situations Fund | $ | 2,747 | Allocated sale price | Relative fair value of assets sold | 12.4% | 12.0% - 12.7% | |||||||||||||||||||||||
Fair Value, Investments, Entities That Calculate Net Asset Value Per Share | ' | ||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS OF INVESTMENTS IN CERTAIN ENTITIES | |||||||||||||||||||||||||||||
THAT CALCULATE NET ASSET VALUE PER SHARE (OR ITS EQUIVALENT) | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Fair Value June 30, 2014 | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | ||||||||||||||||||||||||||
Other investments, at fair value | |||||||||||||||||||||||||||||
EuroDekania (a) | $ | 4,290 | N/A | N/A | N/A | ||||||||||||||||||||||||
$ | 4,290 | ||||||||||||||||||||||||||||
Fair Value December 31, 2013 | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | ||||||||||||||||||||||||||
Other investments, at fair value | |||||||||||||||||||||||||||||
EuroDekania (a) | $ | 4,192 | N/A | N/A | N/A | ||||||||||||||||||||||||
Star Asia (b) | 17,104 | N/A | N/A | N/A | |||||||||||||||||||||||||
Star Asia Special Situations Fund (c) | 2,747 | N/A | N/A | N/A | |||||||||||||||||||||||||
$ | 24,043 | ||||||||||||||||||||||||||||
N/A – Not applicable. | |||||||||||||||||||||||||||||
(a)EuroDekania’s investment strategy is to make investments in hybrid capital securities that have attributes of debt and equity, primarily in the form of subordinated debt issued by insurance companies, banks and bank holding companies based primarily in Western Europe; widely syndicated leveraged loans issued by European corporations; CMBS, including subordinated interests in first mortgage real estate loans; and RMBS and other ABS backed by consumer and commercial receivables. The majority of the assets are denominated in Euros and U.K. Pounds Sterling. The fair value of the investment in this category has been estimated using the net asset value per share of the investment in accordance with the “practical expedient” provisions of FASB ASC 820. | |||||||||||||||||||||||||||||
(b)Star Asia’s investment strategy is to make investments in Asian real estate structured finance investments, including CMBS, corporate debt of REITs and real estate operating companies, whole loans, mezzanine loans, and other commercial real estate fixed income investments. On February 20, 2014, the Company completed the sale of the Company’s ownership interests in the Star Asia Group. See note 4. The Company determined the fair value of its investment in Star Asia as of December 31, 2013, by utilizing a valuation model that took into account the terms and conditions of the sale in February 2014. If the Company had used Star Asia’s unadjusted reported net asset value to determine its fair value, the carrying value of its investment in Star Asia would have been $30,261 as of December 31, 2013. | |||||||||||||||||||||||||||||
(c)The Star Asia Special Situations Fund’s investment strategy is to make investments in real estate and securities backed by real estate in Japan. The Star Asia Special Situations Fund is a closed end fund that does not allow investor redemptions. It has an initial life of three years which can be extended under certain circumstances for up to two years. As described in more detail in note 4, the Company sold its investment in Star Asia Special Situations Fund in February 2014 along with its investment in Star Asia and certain other related entities. According to ASC 820, when a sale is considered probable of the measurement date at an amount other than the underlying NAV per share, the reporting entity should not use the practical expedient in determining fair value. Therefore, the Company determined the fair value of its investment in Star Asia Special Situations Fund as of December 31, 2013, by utilizing a valuation model that took into account the terms and conditions of the sale in February 2014. | |||||||||||||||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Derivative Financial Instruments [Abstract] | ' | ||||||||
Balance Sheet Information | ' | ||||||||
DERIVATIVE FINANCIAL INSTRUMENTS-BALANCE SHEET INFORMATION | |||||||||
(Dollars in Thousands) | |||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815 | Balance Sheet Classification | 30-Jun-14 | 31-Dec-13 | ||||||
TBAs | Investments-trading | $ | 20 | $ | 188 | ||||
Foreign currency forward contracts | Other investments, at fair value | - | 190 | ||||||
TBAs | Trading securities sold, not yet purchased | -10 | -66 | ||||||
$ | 10 | $ | 312 | ||||||
Statement Of Operations Information | ' | ||||||||
DERIVATIVE FINANCIAL INSTRUMENTS-STATEMENT OF OPERATIONS INFORMATION | |||||||||
(Dollars in Thousands) | |||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815 | Income Statement Classification | Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||
Foreign currency forward contracts | Revenues-principal transactions and other income | $ | -347 | $ | -362 | ||||
TBAs | Revenues-net trading | 1,227 | 2,017 | ||||||
$ | 880 | $ | 1,655 | ||||||
DERIVATIVE FINANCIAL INSTRUMENTS-STATEMENT OF OPERATIONS INFORMATION | |||||||||
(Dollars in Thousands) | |||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments Under FASB ASC 815 | Income Statement Classification | Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||
Foreign currency forward contracts | Revenues-principal transactions and other income | $ | - | $ | -362 | ||||
TBAs | Revenues-net trading | 753 | 2,207 | ||||||
$ | 753 | $ | 1,845 | ||||||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Goodwill Disclosure [Abstract] | ' | ||||||
Schedule Of Goodwill | ' | ||||||
GOODWILL | |||||||
(Dollars in Thousands) | |||||||
30-Jun-14 | 31-Dec-13 | ||||||
Cira SCM, LLC | $ | - | $ | 3,121 | |||
AFN | 110 | 110 | |||||
JVB | 7,882 | 7,882 | |||||
Goodwill | $ | 7,992 | $ | 11,113 | |||
Other_Assets_and_Accounts_Paya1
Other Assets and Accounts Payable and Other Liabilities (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Other Assets and Accounts Payable and Other Liabilities [Abstract] | ' | ||||||
Schedule Of Other Assets | ' | ||||||
OTHER ASSETS | |||||||
(Dollars in Thousands) | |||||||
30-Jun-14 | 31-Dec-13 | ||||||
Deferred costs | $ | 590 | $ | 644 | |||
Note receivable | 2,314 | 1,849 | |||||
Prepaid expenses | 2,306 | 2,226 | |||||
Prepaid income taxes | 48 | 146 | |||||
Security deposits | 2,472 | 2,492 | |||||
Miscellaneous other assets | 207 | 146 | |||||
Cost method investment | 235 | 235 | |||||
Furniture, equipment, and leasehold improvements, net | 1,606 | 2,054 | |||||
Intangible assets | 166 | 483 | |||||
Equity method affiliates | - | -31 | |||||
Other assets | $ | 9,944 | $ | 10,244 | |||
Schedule Of Accounts Payable And Other Liabilities | ' | ||||||
ACCOUNTS PAYABLE AND OTHER LIABILITIES | |||||||
(Dollars in Thousands) | |||||||
30-Jun-14 | 31-Dec-13 | ||||||
Accounts payable | $ | 518 | $ | 738 | |||
Rent payable | 826 | 1,058 | |||||
Accrued interest payable | 325 | 376 | |||||
Accrued interest on securities sold, not yet purchased | 440 | 255 | |||||
Payroll taxes payable | 571 | 1,055 | |||||
Other general accrued expenses | 1,809 | 4,994 | |||||
Accounts payable and other liabilities | $ | 4,489 | $ | 8,476 | |||
Investments_In_Equity_Method_A1
Investments In Equity Method Affiliates (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Investments in Equity Method Affiliates [Abstract] | ' | |||||||||||||||
Schedule Of Investments In Equity Method Affiliates | ' | |||||||||||||||
INVESTMENTS IN EQUITY METHOD AFFILIATES | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Star | Star Asia | |||||||||||||||
Asia | Capital | SAA | ||||||||||||||
Opportunity | Management | Manager | Other | Total | ||||||||||||
1-Jan-14 | $ | 17 | $ | -81 | $ | 12 | $ | 21 | $ | -31 | ||||||
Distributions / repayments | -17 | -15 | -25 | -10 | -67 | |||||||||||
Earnings / (loss) realized | - | 13 | 14 | - | 27 | |||||||||||
Sale (1) | - | 83 | -1 | -11 | 71 | |||||||||||
30-Jun-14 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
(1)See note 4. | ||||||||||||||||
Summarized Data Of Equity Method Investees | ' | |||||||||||||||
SUMMARY DATA OF EQUITY METHOD INVESTEES | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
Total Assets | $ | 25,936 | $ | 370,388 | ||||||||||||
Liabilities | $ | 53 | $ | 144,578 | ||||||||||||
Equity attributable to the investees | 25,793 | 225,810 | ||||||||||||||
Non-controlling interest | 90 | - | ||||||||||||||
Total Liabilities & Equity | $ | 25,936 | $ | 370,388 | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income / (loss) | $ | 1,813 | $ | 8,590 | $ | 8,950 | $ | -3,222 | ||||||||
Net income / (loss) attributable to the investees | $ | 1,807 | $ | 8,789 | $ | 8,921 | $ | -2,666 | ||||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Variable Interest Entity Disclosure [Abstract] | ' | |||||||||
Schedule Of Variable Interest Entities | ' | |||||||||
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES | ||||||||||
(Dollars in Thousands) | ||||||||||
30-Jun-14 | ||||||||||
Other Receivable | Other Investments, at fair value | Maximum Exposure to loss in non-consolidated VIEs | ||||||||
Managed VIEs | $ | 2,137 | $ | - | $ | 2,137 | ||||
Third party managed VIEs | 91 | 18,832 | 18,923 | |||||||
Total | $ | 2,228 | $ | 18,832 | $ | 21,060 | ||||
31-Dec-13 | ||||||||||
Other Receivable | Other Investments, at fair value | Maximum Exposure to loss in non-consolidated VIEs | ||||||||
Managed VIEs | $ | 2,239 | $ | - | $ | 2,239 | ||||
Third party managed VIEs | 84 | 35 | 119 | |||||||
Total | $ | 2,323 | $ | 35 | $ | 2,358 | ||||
Debt_Tables
Debt (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Debt [Abstract] | ' | ||||||||||||||||||
Debt Outstanding | ' | ||||||||||||||||||
DETAIL OF DEBT | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Description | Current Outstanding Par | 30-Jun-14 | 31-Dec-13 | Interest Rate Terms | Interest (4) | Maturity | |||||||||||||
Convertible senior notes: | |||||||||||||||||||
10.50% contingent convertible senior notes (the "New Notes") | $ | - | $ | - | $ | 3,115 | 10.50% | 10.50 | % | May 2014 (1) | |||||||||
8.00% convertible senior notes (the "8.0% Convertible Notes") | 8,248 | 8,248 | 8,248 | 8.00% | 8.00 | % | September 2018 (2) | ||||||||||||
$ | 8,248 | 8,248 | 11,363 | ||||||||||||||||
Junior subordinated notes: | |||||||||||||||||||
Alesco Capital Trust I | $ | 28,125 | -3 | 11,087 | 10,697 | 4.23% | 4.23 | % | Jul-37 | ||||||||||
Sunset Financial Statutory Trust I | 20,000 | -3 | 7,895 | 7,614 | 4.38% | 4.38 | % | Mar-35 | |||||||||||
$ | 48,125 | 18,982 | 18,311 | ||||||||||||||||
Total | $ | 27,230 | $ | 29,674 | |||||||||||||||
(1)On May 20, 2014, the Company redeemed the entire $3,121 aggregate principal amount of the New Notes outstanding. | |||||||||||||||||||
(2) The holders of the 8.0% Convertible Notes may convert all or any part of the outstanding principal amount of the 8.0% Convertible Notes at any time prior to maturity into shares of the Company’s common stock at a conversion price of $3.00 per share, subject to customary anti-dilution adjustments. | |||||||||||||||||||
(3)The outstanding par represents the total par amount of the junior subordinated notes held by two separate trusts. The Company does not consolidate these trusts. The Company holds $1,489 par value of these junior subordinated notes, comprised of $870 par value of junior subordinated notes related to Alesco Capital Trust I and $619 par value of junior subordinated notes related to Sunset Financial Statutory Trust I. These notes have a carrying value of $0. Therefore, the net par value held by third parties is $48,125. | |||||||||||||||||||
(4)Represents the interest rate as of the last day of the reporting period. | |||||||||||||||||||
Equity_Tables
Equity (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Equity [Abstract] | ' | ||||||
Schedule Of Unrestricted Common Stock Activity | ' | ||||||
Common Stock | |||||||
Shares | |||||||
31-Dec-13 | 14,398,579 | ||||||
Shares issued in connection with the redemption of Operating LLC units | 186,342 | ||||||
Vesting of shares | 393,818 | ||||||
Shares withheld for employee taxes | -31,426 | ||||||
30-Jun-14 | 14,947,313 | ||||||
Operating LLC Membership Units | ' | ||||||
Operating LLC | |||||||
Membership Units | |||||||
Units related to UIS Agreement | 347,751 | ||||||
Units received from certain former owners of JVB Holdings | 186,342 | ||||||
Total | 534,093 | ||||||
Schedule Of Effects Of Changes In Ownership Interest Subsidiary | ' | ||||||
30-Jun-14 | 30-Jun-13 | ||||||
Net income / (loss) attributable to IFMI | $ | -4,221 | $ | -9,202 | |||
Transfers (to) from the non-controlling interest: | |||||||
Increase / (decrease) in IFMI's paid in capital for the | |||||||
acquisition / (surrender) of additional units in consolidated | |||||||
subsidiary, net | 250 | 634 | |||||
Changes from net income / (loss) attributable to IFMI and transfers (to) from the non-controlling interest: | $ | -3,971 | $ | -8,568 | |||
Earnings_Loss_Per_Common_Share1
Earnings / (Loss) Per Common Share (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Earnings / (Loss) Per Common Share [Abstract] | ' | |||||||||||
Schedule of Earnings / (Loss) Per Common Share | ' | |||||||||||
EARNINGS / (LOSS) PER COMMON SHARE | ||||||||||||
(Dollars in Thousands, except share or per share information) | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Net income / (loss) attributable to IFMI | $ | -2,123 | $ | -4,702 | $ | -4,221 | $ | -9,202 | ||||
Add/ (deduct): Income / (loss) attributable to non-controlling interest attributable to Operating LLC membership units exchangeable into IFMI shares (1) | -734 | -2,158 | -1,441 | -4,249 | ||||||||
Add / (deduct): Adjustment (2) | -11 | 8 | -43 | -6 | ||||||||
Net income / (loss) on a fully converted basis | $ | -2,868 | $ | -6,852 | $ | -5,705 | $ | -13,457 | ||||
Weighted average common shares outstanding - Basic | 15,105,751 | 11,658,512 | 14,987,079 | 11,504,613 | ||||||||
Unrestricted Operating LLC membership units exchangeable into IFMI shares (1) | 5,324,140 | 5,324,090 | 5,324,137 | 5,324,090 | ||||||||
Weighted average common shares outstanding - Diluted (3) | 20,429,891 | 16,982,602 | 20,311,216 | 16,828,703 | ||||||||
Net income / (loss) per common share - Basic | $ | -0.14 | $ | -0.4 | $ | -0.28 | $ | -0.8 | ||||
Net income / (loss) per common share - Diluted | $ | -0.14 | $ | -0.4 | $ | -0.28 | $ | -0.8 | ||||
(1)The Operating LLC membership units not held by IFMI (that is, those held by the non-controlling interest for the six and three months ended June 30, 2014 and 2013) may be redeemed and exchanged into shares of the Company on a one-to-one basis. The 4,983,557 Operating LLC membership units held by Daniel G. Cohen, the Vice Chairman of the Company’s Board of Directors and of the board of managers of the Operating LLC, President and Chief Executive Officer of the Company’s European Business, and the President of CCFL, are redeemable at Mr. Cohen’s option, at any time, for (i) cash in an amount equal to the average of the per share closing prices of the Company’s common stock for the ten consecutive trading days immediately preceding the date the Company receives Mr. Cohen’s redemption notice, or (ii) at the Company’s option, one share of the Company’s common stock, subject, in each case, to appropriate adjustment upon the occurrence of an issuance of additional shares of the Company’ common stock as a dividend or other distribution on the Company’s outstanding common stock, or a further subdivision or combination of the outstanding shares of the Company’s common stock. The Operating LLC membership units held by other members of the Operating LLC have the same redemption rights as described above. These membership units are not included in the computation of basic earnings per share. These membership units enter into the computation of diluted net income / (loss) per common share when the effect is dilutive using the if-converted method. | ||||||||||||
(2)An adjustment is included for the following: (i) if the Operating LLC membership units had been converted at the beginning of the period, the Company would have incurred a higher income tax expense or realized a higher income tax benefit, as applicable; and (ii) to adjust the non-controlling interest amount to be consistent with the weighted average share calculation. | ||||||||||||
(3)For the six months ended June 30, 2014 and 2013, weighted average common shares outstanding excludes a total of 145,966 and 344,834 shares, respectively, representing restricted Operating LLC membership units, restricted IFMI common stock, and restricted units of IFMI common stock which would be anti-dilutive because of the Company’s net loss. For the three months ended June 30, 2014 and 2013, weighted average common shares outstanding excludes a total of 71,418 shares and 371,778 shares respectively, representing restricted Operating LLC membership units, restricted IFMI common stock, and restricted units of IFMI common stock which would be anti-dilutive because of the Company’s net loss. For the six and three months ended June 30, 2014, weighted average common shares outstanding also excludes 2,749,167 shares from the assumed conversion of the 8.0% Convertibles Notes because the inclusion of the converted shares would be anti-dilutive. | ||||||||||||
Recovered_Sheet1
Segment and Geographic Information (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Segment and Geographic Information [Abstract] | ' | ||||||||||||||||||
Schedule Of Segment Reporting Information | ' | ||||||||||||||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 13,549 | $ | - | $ | - | $ | 13,549 | $ | - | $ | 13,549 | |||||||
Asset management | - | 7,643 | - | 7,643 | - | 7,643 | |||||||||||||
New issue and advisory | 2,718 | - | - | 2,718 | - | 2,718 | |||||||||||||
Principal transactions and other income | 523 | 778 | 2,211 | 3,512 | - | 3,512 | |||||||||||||
Total revenues | 16,790 | 8,421 | 2,211 | 27,422 | - | 27,422 | |||||||||||||
Total operating expenses | 17,139 | 6,706 | 47 | 23,892 | 6,882 | 30,774 | |||||||||||||
Operating income / (loss) | -349 | 1,715 | 2,164 | 3,530 | -6,882 | -3,352 | |||||||||||||
Interest expense | - | - | - | - | -2,238 | -2,238 | |||||||||||||
Income / (loss) from equity method affiliates | - | 27 | - | 27 | - | 27 | |||||||||||||
Income / (loss) before income taxes | -349 | 1,742 | 2,164 | 3,557 | -9,120 | -5,563 | |||||||||||||
Income tax expense / (benefit) | - | - | - | - | 99 | 99 | |||||||||||||
Net income / (loss) | -349 | 1,742 | 2,164 | 3,557 | -9,219 | -5,662 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | - | - | - | - | -1,441 | -1,441 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | -349 | $ | 1,742 | $ | 2,164 | $ | 3,557 | $ | -7,778 | $ | -4,221 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 410 | $ | 45 | $ | - | $ | 455 | $ | 143 | $ | 598 | |||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 24,689 | $ | - | $ | - | $ | 24,689 | $ | - | $ | 24,689 | |||||||
Asset management | - | 8,917 | - | 8,917 | - | 8,917 | |||||||||||||
New issue and advisory | 1,567 | - | - | 1,567 | - | 1,567 | |||||||||||||
Principal transactions and other income | 144 | 898 | -8,455 | -7,413 | - | -7,413 | |||||||||||||
Total revenues | 26,400 | 9,815 | -8,455 | 27,760 | - | 27,760 | |||||||||||||
Total operating expenses | 28,536 | 5,613 | 162 | 34,311 | 6,419 | 40,730 | |||||||||||||
Operating income / (loss) | -2,136 | 4,202 | -8,617 | -6,551 | -6,419 | -12,970 | |||||||||||||
Interest expense | -109 | -7 | - | -116 | -1,948 | -2,064 | |||||||||||||
Income / (loss) from equity method affiliates | - | 332 | 1,282 | 1,614 | - | 1,614 | |||||||||||||
Income / (loss) before income taxes | -2,245 | 4,527 | -7,335 | -5,053 | -8,367 | -13,420 | |||||||||||||
Income tax expense / (benefit) | -42 | - | - | -42 | 88 | 46 | |||||||||||||
Net income / (loss) | -2,203 | 4,527 | -7,335 | -5,011 | -8,455 | -13,466 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | -15 | - | - | -15 | -4,249 | -4,264 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | -2,188 | $ | 4,527 | $ | -7,335 | $ | -4,996 | $ | -4,206 | $ | -9,202 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 390 | $ | 131 | $ | - | $ | 521 | $ | 148 | $ | 669 | |||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 6,620 | $ | - | $ | - | $ | 6,620 | $ | - | $ | 6,620 | |||||||
Asset management | - | 3,386 | - | 3,386 | - | 3,386 | |||||||||||||
New issue and advisory | 2,388 | - | - | 2,388 | - | 2,388 | |||||||||||||
Principal transactions and other income | 158 | 397 | 1,286 | 1,841 | - | 1,841 | |||||||||||||
Total revenues | 9,166 | 3,783 | 1,286 | 14,235 | - | 14,235 | |||||||||||||
Total operating expenses | 8,186 | 4,588 | - | 12,774 | 3,121 | 15,895 | |||||||||||||
Operating income / (loss) | 980 | -805 | 1,286 | 1,461 | -3,121 | -1,660 | |||||||||||||
Interest expense | - | - | - | - | -1,109 | -1,109 | |||||||||||||
Income / (loss) from equity method affiliates | - | - | 1 | 1 | - | 1 | |||||||||||||
Income / (loss) before income taxes | 980 | -805 | 1,287 | 1,462 | -4,230 | -2,768 | |||||||||||||
Income tax expense / (benefit) | - | - | - | - | 89 | 89 | |||||||||||||
Net income / (loss) | 980 | -805 | 1,287 | 1,462 | -4,319 | -2,857 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | - | - | - | - | -734 | -734 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | 980 | $ | -805 | $ | 1,287 | $ | 1,462 | $ | -3,585 | $ | -2,123 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 184 | $ | 8 | $ | - | $ | 192 | $ | 75 | $ | 267 | |||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 11,630 | $ | - | $ | - | $ | 11,630 | $ | - | $ | 11,630 | |||||||
Asset management | - | 4,155 | - | 4,155 | - | 4,155 | |||||||||||||
New issue and advisory | 572 | - | - | 572 | - | 572 | |||||||||||||
Principal transactions and other income | 89 | 388 | -3,100 | -2,623 | - | -2,623 | |||||||||||||
Total revenues | 12,291 | 4,543 | -3,100 | 13,734 | - | 13,734 | |||||||||||||
Total operating expenses | 14,021 | 2,681 | 83 | 16,785 | 2,847 | 19,632 | |||||||||||||
Operating income / (loss) | -1,730 | 1,862 | -3,183 | -3,051 | -2,847 | -5,898 | |||||||||||||
Interest expense | -55 | -4 | - | -59 | -976 | -1,035 | |||||||||||||
Income / (loss) from equity method affiliates | - | 122 | -27 | 95 | - | 95 | |||||||||||||
Income / (loss) before income taxes | -1,785 | 1,980 | -3,210 | -3,015 | -3,823 | -6,838 | |||||||||||||
Income tax expense / (benefit) | -17 | - | - | -17 | 51 | 34 | |||||||||||||
Net income / (loss) | -1,768 | 1,980 | -3,210 | -2,998 | -3,874 | -6,872 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | -12 | - | - | -12 | -2,158 | -2,170 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | -1,756 | $ | 1,980 | $ | -3,210 | $ | -2,986 | $ | -1,716 | $ | -4,702 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 193 | $ | 93 | $ | - | $ | 286 | $ | 73 | $ | 359 | |||||||
(1)Unallocated includes certain expenses incurred by indirect overhead and support departments (such as the executive, finance, legal, information technology, human resources, risk, compliance, and other similar overhead and support departments). Some of the items not allocated include: (1) operating expenses (such as cash compensation and benefits, equity-based compensation expense, professional fees, travel and entertainment, consulting fees, and rent) related to support departments excluding certain departments that directly support the Capital Markets business segment; (2) interest expense on debt; and (3) income taxes. Management does not consider these items necessary for an understanding of the operating results of these business segments and such amounts are excluded in business segment reporting to the Chief Operating Decision Maker. | |||||||||||||||||||
Reconciliation Of Assets From Segment To Consolidated | ' | ||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Total Assets | $ | 176,519 | $ | 3,893 | $ | 26,652 | $ | 207,064 | $ | 7,650 | $ | 214,714 | |||||||
Included within total assets: | |||||||||||||||||||
Investment in equity method affiliates | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
Goodwill (2) | $ | 7,937 | $ | 55 | $ | - | $ | 7,992 | $ | - | $ | 7,992 | |||||||
Intangible assets (2) | $ | 166 | $ | - | $ | - | $ | 166 | $ | - | $ | 166 | |||||||
Balance Sheet Data | |||||||||||||||||||
As of June 30, 2013 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Total Assets | $ | 310,458 | $ | 8,888 | $ | 28,707 | $ | 348,053 | $ | 9,629 | $ | 357,682 | |||||||
Included within total assets: | |||||||||||||||||||
Investment in equity method affiliates | $ | - | $ | -69 | $ | 17 | $ | -52 | $ | - | $ | -52 | |||||||
Goodwill (2) | $ | 7,937 | $ | 3,176 | $ | - | $ | 11,113 | $ | - | $ | 11,113 | |||||||
Intangible assets (2) | $ | 332 | $ | 302 | $ | - | $ | 634 | $ | - | $ | 634 | |||||||
(1)Unallocated assets primarily include (1) amounts due from related parties; (2) furniture and equipment, net; and (3) other assets that are not considered necessary for an understanding of business segment assets and such amounts are excluded in business segment reporting to the Chief Operating Decision Maker. | |||||||||||||||||||
(2)Goodwill and intangible assets as of June 30, 2014 and 2013 are allocated to the Capital Markets and Asset Management business segments as indicated in the table from above. | |||||||||||||||||||
Revenue By Geographic Area | ' | ||||||||||||||||||
GEOGRAPHIC DATA | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Total Revenues: | |||||||||||||||||||
United States | $ | 12,600 | $ | 9,812 | $ | 23,289 | $ | 21,209 | |||||||||||
United Kingdom & Other | 1,635 | 3,140 | 4,009 | 5,496 | |||||||||||||||
Asia | - | 782 | 124 | 1,055 | |||||||||||||||
Total | $ | 14,235 | $ | 13,734 | $ | 27,422 | $ | 27,760 | |||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||||
Schedule Of Related Party Transactions | ' | |||||||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||
Management fee revenue | Net trading | Principal transactions | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||||
TBBK | $ | - | $ | 23 | $ | $ | - | $ | - | $ | - | |||||||
Star Asia (1) | 125 | - | - | - | - | |||||||||||||
Star Asia Capital Management (1) | - | - | - | 13 | - | |||||||||||||
SAA Manager (1) | - | - | - | 14 | - | |||||||||||||
EuroDekania | - | - | 1,444 | - | - | |||||||||||||
EBC | - | - | - | - | 111 | |||||||||||||
Mead Park Capital | - | - | - | - | 270 | |||||||||||||
$ | 125 | $ | 23 | $ | $ | 1,444 | $ | 27 | $ | 381 | ||||||||
(1) Effective February 20, 2014, the Company sold its interest in these entities. See note A from above and note 4. | ||||||||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||
Management fee revenue | Net trading | Principal transactions | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||||
TBBK | - | 401 | - | - | - | |||||||||||||
Star Asia (1) | 1,069 | - | -9,234 | - | - | |||||||||||||
Star Asia Manager (1) (2) | - | - | - | 158 | - | |||||||||||||
Star Asia SPV | - | - | - | 1,287 | - | |||||||||||||
Star Asia Opportunity | - | - | - | -5 | - | |||||||||||||
Star Asia Capital Management (1) | - | - | - | 71 | - | |||||||||||||
Star Asia Special Situations Fund (1) | - | - | -30 | - | - | |||||||||||||
SAA Manager (1) | - | - | - | 109 | - | |||||||||||||
EuroDekania | - | - | 381 | - | - | |||||||||||||
Deep Value GPs | - | - | - | -6 | - | |||||||||||||
$ | 1,069 | $ | 401 | $ | $ | -8,883 | $ | 1,614 | $ | - | ||||||||
-1 | Effective February 20, 2014, the Company sold its interest in this entity. See paragraph A from above and note 4. | |||||||||||||||||
(2) Beginning March 1, 2013, Star Asia Manager was consolidated by the Company as a result of the Star Asia Manager Repurchase Transaction. Prior to March 1, 2013, Star Asia Manager was treated as an equity method investment. See paragraph A above. | ||||||||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||
Management fee revenue | Net trading | Principal transactions | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||||
TBBK | $ | - | $ | 1 | $ | $ | - | $ | - | $ | - | |||||||
Star Asia Opportunity | - | - | - | 1 | - | |||||||||||||
EuroDekania | - | - | 313 | - | - | |||||||||||||
EBC | - | - | - | - | 56 | |||||||||||||
Mead Park Capital | - | - | - | - | 136 | |||||||||||||
$ | - | $ | 1 | $ | $ | 313 | $ | 1 | $ | 192 | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||
Management fee revenue | Net trading | Principal transactions | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||||
TBBK | $ | - | $ | 375 | $ | $ | - | $ | - | $ | - | |||||||
Star Asia (1) | 792 | - | -3,201 | - | - | |||||||||||||
Star Asia SPV | - | - | - | -27 | - | |||||||||||||
Star Asia Opportunity | - | - | - | 1 | - | |||||||||||||
Star Asia Capital Management (1) | - | - | - | 37 | - | |||||||||||||
Star Asia Special Situations Fund (1) | - | - | -73 | - | - | |||||||||||||
SAA Manager (1) | - | - | - | 86 | - | |||||||||||||
EuroDekania | - | - | 41 | - | - | |||||||||||||
Deep Value GPs | - | - | - | -2 | - | |||||||||||||
$ | 792 | $ | 375 | $ | $ | -3,233 | $ | 95 | $ | - | ||||||||
Recovered_Sheet2
Due from / Due to Related Parties (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Due From / Due To Related Parties [Abstract] | ' | ||||||
Schedule of Due From / Due To Related Parties | ' | ||||||
DUE FROM/DUE TO RELATED PARTIES | |||||||
(Dollars in Thousands) | |||||||
30-Jun-14 | 31-Dec-13 | ||||||
EuroDekania | $ | - | $ | 18 | |||
Star Asia and related entities (1) | - | 450 | |||||
CBF | - | 4 | |||||
Employees | 349 | 411 | |||||
Due from Related Parties | $ | 349 | $ | 883 | |||
(1) Related entities include Star Asia Capital Management and SAA Manager. | |||||||
Recovered_Sheet3
Organization and Nature of Operations (Details) (USD $) | 6 Months Ended |
In Billions, unless otherwise specified | Jun. 30, 2014 |
Securities [Line Items] | ' |
Assets under Management | $4.80 |
CDOs [Member] | ' |
Securities [Line Items] | ' |
Assets under Management | $4.70 |
Assets under management which are collateralized debt obligations percentage | 99.00% |
Recovered_Sheet4
Summary of Significant Accounting Policies (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary of Significant Accounting Policies [Abstract] | ' | ' |
Estimated debt in fair value | $40.50 | $40.20 |
Sale_Of_Star_Asia_And_Related_1
Sale Of Star Asia And Related Entities (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2014 |
Sale of Star Asia and Related Entities [Abstract] | ' | ' |
Proceeds from Divestiture of Businesses | $20,043 | ' |
Disposal Group, Not Discontinued Operation, Contingent Consideration Arrangement, Percentage of Revenue | ' | 15.00% |
Disposal Group, Not Discontinued Operation, Contingent Consideration Arrangement, Measurement Period | ' | '4 years |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $78 | ' |
Receivables_From_And_Payables_2
Receivables From And Payables To Brokers, Dealers, And Clearing Agencies (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Receivables from and Payables to Brokers, Dealers, and Clearing Agencies [Abstract] | ' | ' | ' | ' |
Interest On Margin Payable | $106 | $222 | $172 | $519 |
Receivables_From_And_Payables_3
Receivables From And Payables To Brokers, Dealers, And Clearing Agencies (Schedule Of Due To (From) Broker-Dealers And Clearing Organizations) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables from Brokers-Dealers and Clearing Organizations [Abstract] | ' | ' |
Deposits with clearing organizations | $1,348 | $1,428 |
Receivable from clearing organizations | 295 | 418 |
Receivables from brokers, dealers, and clearing agencies | 1,643 | 1,846 |
Payables to Broker-Dealers and Clearing Organizations [Abstract] | ' | ' |
Unsettled regular way trades, net | 7,949 | 5,600 |
Margin payable | 20,682 | 25,111 |
Payables to brokers, dealers, and clearing agencies | $28,631 | $30,711 |
Financial_Instruments_Narrativ
Financial Instruments (Narrative) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Financial Instruments [Abstract] | ' | ' |
Unrealized gain (losses) in net trading revenue | ($1,211) | ($168) |
Financial_Instruments_Schedule
Financial Instruments (Schedule Of Trading Securities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | $114,127 | $117,618 | ||
U.S. government agency MBS and CMOs [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | 7,112 | [1] | 13,520 | [1] |
U.S. government agency debt securities [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | 42,806 | 32,213 | ||
RMBS [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | 414 | 1,584 | ||
CMBS [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | 137 | ' | ||
U.S. Treasury securities [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | 200 | 764 | ||
CLO's [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | 1,931 | 186 | ||
Other ABS [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | 541 | 268 | ||
SBA loans [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | 9,168 | 27,719 | ||
Corporate bonds and redeemable preferred stock [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | 27,949 | 23,562 | ||
Foreign government bonds [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | 154 | 88 | ||
Municipal bonds [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | 16,293 | 16,024 | ||
Exchange Traded Funds [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | ' | 6 | ||
Certificates of deposit [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | 7,357 | 1,648 | ||
Equity securities [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Investments-trading | $65 | $36 | ||
[1] | Includes TBAs. See note 8. |
Financial_Instruments_Schedule1
Financial Instruments (Schedule Of Trading Securities Sold, Not Yet Purchased) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' | ||
Trading securities sold, not yet purchased | $54,739 | $49,504 | ||
U.S. government agency MBS [Member] | ' | ' | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' | ||
Trading securities sold, not yet purchased | 11 | [1] | 121 | [1] |
U.S. Treasury securities [Member] | ' | ' | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' | ||
Trading securities sold, not yet purchased | 40,514 | 38,066 | ||
Corporate bonds and redeemable preferred stock [Member] | ' | ' | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' | ||
Trading securities sold, not yet purchased | 14,189 | 10,679 | ||
Foreign government bonds [Member] | ' | ' | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' | ||
Trading securities sold, not yet purchased | ' | 26 | ||
Municipal bonds [Member] | ' | ' | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' | ||
Trading securities sold, not yet purchased | 25 | 88 | ||
Certificates of deposit [Member] | ' | ' | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ' | ' | ||
Trading securities sold, not yet purchased | ' | $524 | ||
[1] | Represents TBAs. See note 8. |
Financial_Instruments_Schedule2
Financial Instruments (Schedule Of Other Investments) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Cost | $32,333 | $40,123 | ||
Other investments, Carrying Value | 26,446 | 26,877 | ||
Other investments, Unrealized Gain /(Loss) | -5,887 | -13,246 | ||
EuroDekania [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Carrying Value | 4,290 | [1] | 4,192 | [1] |
Star Asia [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Carrying Value | ' | 17,104 | [2] | |
Star Asia Special Situations Fund [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Carrying Value | ' | 2,747 | [2] | |
Tiptree Financial Partners L.P. [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Carrying Value | 2,705 | [3] | 2,282 | [3] |
Other Equity Securities [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Carrying Value | 32 | 33 | ||
CLO's [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Cost | 18,809 | ' | ||
Other investments, Carrying Value | 18,793 | ' | ||
Other investments, Unrealized Gain /(Loss) | -16 | ' | ||
CDOs [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Cost | 217 | 217 | ||
Other investments, Carrying Value | 39 | 35 | ||
Other investments, Unrealized Gain /(Loss) | -178 | -182 | ||
Equity securities [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Cost | 13,169 | 39,752 | ||
Other investments, Carrying Value | 7,027 | 26,358 | ||
Other investments, Unrealized Gain /(Loss) | -6,142 | -13,394 | ||
Equity securities [Member] | EuroDekania [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Cost | 7,432 | 8,778 | ||
Other investments, Carrying Value | 4,290 | 4,192 | ||
Other investments, Unrealized Gain /(Loss) | -3,142 | -4,586 | ||
Equity securities [Member] | Star Asia [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Cost | ' | 23,304 | [4] | |
Other investments, Carrying Value | ' | 17,104 | [4] | |
Other investments, Unrealized Gain /(Loss) | ' | -6,200 | [4] | |
Equity securities [Member] | Star Asia Special Situations Fund [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Cost | ' | 1,933 | [4] | |
Other investments, Carrying Value | ' | 2,747 | [4] | |
Other investments, Unrealized Gain /(Loss) | ' | 814 | [4] | |
Equity securities [Member] | Tiptree Financial Partners L.P. [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Cost | 5,561 | 5,561 | ||
Other investments, Carrying Value | 2,705 | 2,282 | ||
Other investments, Unrealized Gain /(Loss) | -2,856 | -3,279 | ||
Equity securities [Member] | Other Equity Securities [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Cost | 176 | 176 | ||
Other investments, Carrying Value | 32 | 33 | ||
Other investments, Unrealized Gain /(Loss) | -144 | -143 | ||
Residential Mortgage [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Cost | 138 | 154 | ||
Other investments, Carrying Value | 587 | 294 | ||
Other investments, Unrealized Gain /(Loss) | 449 | 140 | ||
Foreign currency forward contracts [Member] | ' | ' | ||
Schedule of Investments [Line Items] | ' | ' | ||
Other investments, Carrying Value | ' | 190 | ||
Other investments, Unrealized Gain /(Loss) | ' | $190 | ||
[1] | Hybrid Securities FundbEuropean. | |||
[2] | Real Estate FundbAsian. | |||
[3] | Diversified Holding Company. | |||
[4] | On February 20, 2014, the Company completed the sale of the Company's ownership interests in the Star Asia Group. See note 4. |
Fair_Value_Disclosures_Narrati
Fair Value Disclosures (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | |||||
Fair value, option, changes in fair value, gains (losses) | $1,010 | ($4,595) | $1,916 | ($9,993) | ' | |||||
Other investments, Carrying Value | 26,446 | ' | 26,446 | ' | 26,877 | |||||
Star Asia [Member] | ' | ' | ' | ' | ' | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | |||||
Other investments, Carrying Value | ' | ' | ' | ' | 17,104 | [1] | ||||
Alternative Investments, Fair Value Disclosure, Unadjusted Net Asset Value | ' | ' | ' | ' | 30,261 | |||||
Tiptree Financial Partners L.P. [Member] | ' | ' | ' | ' | ' | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | |||||
Other investments, Carrying Value | 2,705 | [2] | ' | 2,705 | [2] | ' | 2,282 | [2] | ||
Residential Loans [Member] | ' | ' | ' | ' | ' | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | |||||
Other investments, Carrying Value | 587 | ' | 587 | ' | 294 | |||||
Trading Securities [Member] | ' | ' | ' | ' | ' | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | |||||
Fair value of assets transfers out of level 3 | 0 | 0 | 0 | 0 | ' | |||||
Fair value of assets transfers into level 3 | 0 | 0 | 0 | 0 | ' | |||||
Alternative Investments [Member] | ' | ' | ' | ' | ' | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | |||||
Fair value of assets transfers out of level 3 | ' | 2,834 | ' | 2,834 | ' | |||||
Alternative Investments [Member] | Tiptree Financial Partners L.P. [Member] | ' | ' | ' | ' | ' | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | |||||
Fair value of assets transfers out of level 3 | ' | $2,834 | [2] | ' | $2,834 | [2] | ' | |||
[1] | Real Estate FundbAsian. | |||||||||
[2] | Diversified Holding Company. |
Fair_Value_Disclosures_Schedul
Fair Value Disclosures (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | $114,127 | $117,618 | ||
Other investments, Carrying Value | 26,446 | 26,877 | ||
Trading securities sold, not yet purchased | 54,739 | 49,504 | ||
Quoted Prices In Active Markets (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 255 | 3,804 | ||
Other investments, Carrying Value | 23 | 213 | ||
Trading securities sold, not yet purchased | 40,514 | 38,066 | ||
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 113,872 | 113,628 | ||
Other investments, Carrying Value | 3,301 | 2,586 | ||
Trading securities sold, not yet purchased | 14,225 | 11,438 | ||
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | ' | 186 | ||
Other investments, Carrying Value | 23,122 | 24,078 | ||
U.S. government agency MBS and CMOs [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 7,112 | [1] | 13,520 | [1] |
Trading securities sold, not yet purchased | 11 | 121 | ||
U.S. government agency MBS and CMOs [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 7,112 | 13,520 | ||
Trading securities sold, not yet purchased | 11 | 121 | ||
U.S. government agency debt securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 42,806 | 32,213 | ||
U.S. government agency debt securities [Member] | Quoted Prices In Active Markets (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | ' | 45 | ||
U.S. government agency debt securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 42,806 | 32,168 | ||
RMBS [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 414 | 1,584 | ||
RMBS [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 414 | 1,584 | ||
CMBS [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 137 | ' | ||
CMBS [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 137 | ' | ||
U.S. Treasury securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 200 | 764 | ||
Trading securities sold, not yet purchased | 40,514 | 38,066 | ||
U.S. Treasury securities [Member] | Quoted Prices In Active Markets (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 200 | 764 | ||
Trading securities sold, not yet purchased | 40,514 | 38,066 | ||
CLO's [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 1,931 | 186 | ||
Other investments, Carrying Value | 18,793 | ' | ||
CLO's [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 1,931 | ' | ||
CLO's [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | ' | 186 | ||
Other ABS [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 541 | 268 | ||
Other ABS [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 541 | 268 | ||
SBA loans [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 9,168 | 27,719 | ||
SBA loans [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 9,168 | 27,719 | ||
Corporate bonds and redeemable preferred stock [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 27,949 | 23,562 | ||
Trading securities sold, not yet purchased | 14,189 | 10,679 | ||
Corporate bonds and redeemable preferred stock [Member] | Quoted Prices In Active Markets (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | ' | 2,973 | ||
Corporate bonds and redeemable preferred stock [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 27,949 | 20,589 | ||
Trading securities sold, not yet purchased | 14,189 | 10,679 | ||
Foreign government bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 154 | 88 | ||
Trading securities sold, not yet purchased | ' | 26 | ||
Foreign government bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 154 | 88 | ||
Trading securities sold, not yet purchased | ' | 26 | ||
Municipal bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 16,293 | 16,024 | ||
Trading securities sold, not yet purchased | 25 | 88 | ||
Municipal bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 16,293 | 16,024 | ||
Trading securities sold, not yet purchased | 25 | 88 | ||
Exchange Traded Funds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | ' | 6 | ||
Exchange Traded Funds [Member] | Quoted Prices In Active Markets (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | ' | 6 | ||
Certificates of deposit [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 7,357 | 1,648 | ||
Trading securities sold, not yet purchased | ' | 524 | ||
Certificates of deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 7,357 | 1,648 | ||
Trading securities sold, not yet purchased | ' | 524 | ||
Equity securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 65 | 36 | ||
Other investments, Carrying Value | 7,027 | 26,358 | ||
Equity securities [Member] | Quoted Prices In Active Markets (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 55 | 16 | ||
Equity securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total investments-trading | 10 | 20 | ||
Foreign currency forward contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | ' | 190 | ||
EuroDekania [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 4,290 | [2] | 4,192 | [2] |
EuroDekania [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 4,290 | [2] | 4,192 | [2] |
EuroDekania [Member] | Equity securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 4,290 | 4,192 | ||
Star Asia [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | ' | 17,104 | [3] | |
Star Asia [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | ' | 17,104 | [3] | |
Star Asia [Member] | Equity securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | ' | 17,104 | [4] | |
Tiptree Financial Partners L.P. [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 2,705 | [5] | 2,282 | [5] |
Tiptree Financial Partners L.P. [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 2,705 | [5] | 2,282 | [5] |
Tiptree Financial Partners L.P. [Member] | Equity securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 2,705 | 2,282 | ||
Star Asia Special Situations Fund [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | ' | 2,747 | [3] | |
Star Asia Special Situations Fund [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | ' | 2,747 | [3] | |
Star Asia Special Situations Fund [Member] | Equity securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | ' | 2,747 | [4] | |
Other Equity Securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 32 | 33 | ||
Other Equity Securities [Member] | Quoted Prices In Active Markets (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 23 | 23 | ||
Other Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 9 | 10 | ||
Other Equity Securities [Member] | Equity securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 32 | 33 | ||
CLO's [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 18,793 | ' | ||
CLO's [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 18,793 | ' | ||
CDOs [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 39 | 35 | ||
CDOs [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 39 | 35 | ||
Residential Loans [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 587 | 294 | ||
Residential Loans [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | 587 | 294 | ||
Foreign currency forward contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | ' | 190 | ||
Foreign currency forward contracts [Member] | Quoted Prices In Active Markets (Level 1) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Other investments, Carrying Value | ' | $190 | ||
[1] | Includes TBAs. See note 8. | |||
[2] | Hybrid Securities FundbEuropean. | |||
[3] | Real Estate FundbAsian. | |||
[4] | On February 20, 2014, the Company completed the sale of the Company's ownership interests in the Star Asia Group. See note 4. | |||
[5] | Diversified Holding Company. |
Fair_Value_Disclosures_Schedul1
Fair Value Disclosures (Schedule Of Assets And Liabilities Measured With Level 3 Inputs) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Trading Securities [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Level 3 inputs, Beginning balance | $134 | $259 | $186 | $295 | ||||
Transfers into Level 3 | 0 | 0 | 0 | 0 | ||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | ||||
Accretion of income | ' | ' | [1] | ' | ' | [1] | ||
Purchases | ' | ' | ' | ' | ||||
Sales | -153 | -110 | -183 | -110 | ||||
Level 3 inputs, Ending balance | ' | 221 | ' | 221 | ||||
Change in unrealized gains /(losses) for the period included in earnings | ' | -38 | [2] | ' | -74 | [2] | ||
Trading Securities [Member] | Trading Revenue [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Transactions included in income | 19 | 72 | -3 | 36 | ||||
Alternative Investments [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Level 3 inputs, Beginning balance | 11,131 | 32,294 | 24,078 | 37,637 | ||||
Transfers out of Level 3 | ' | -2,834 | ' | -2,834 | ||||
Accretion of income | 205 | [1] | ' | [1] | 249 | [1] | ' | [1] |
Purchases | 13,754 | ' | 20,819 | 302 | ||||
Sales | -2,301 | ' | -23,556 | ' | ||||
Level 3 inputs, Ending balance | 23,122 | 25,808 | 23,122 | 25,808 | ||||
Change in unrealized gains /(losses) for the period included in earnings | 311 | [2] | -3,652 | [2] | 1,432 | [2] | -9,297 | [2] |
Alternative Investments [Member] | Principal Investing [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Transactions included in income | 333 | [1] | -3,652 | [1] | 1,532 | [1] | -9,297 | [1] |
Other Investments, Equity Securities [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Level 3 inputs, Beginning balance | 3,997 | 32,212 | 24,043 | 37,560 | ||||
Transfers out of Level 3 | ' | -2,834 | ' | -2,834 | ||||
Accretion of income | ' | ' | [1] | ' | ' | [1] | ||
Purchases | ' | ' | ' | 302 | ||||
Sales | -20 | ' | -21,275 | ' | ||||
Level 3 inputs, Ending balance | 4,290 | 25,750 | 4,290 | 25,750 | ||||
Change in unrealized gains /(losses) for the period included in earnings | 313 | [2] | -3,628 | [2] | 1,444 | [2] | -9,278 | [2] |
Other Investments, Equity Securities [Member] | Principal Investing [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Transactions included in income | 313 | [1] | -3,628 | [1] | 1,522 | [1] | -9,278 | [1] |
EuroDekania [Member] | Alternative Investments [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Level 3 inputs, Beginning balance | 3,997 | [3] | 2,394 | [3] | 4,192 | [3] | 2,054 | [3] |
Accretion of income | ' | ' | [1],[3] | ' | ' | [1],[3] | ||
Purchases | ' | ' | [3] | ' | ' | |||
Sales | -20 | [3] | ' | -1,346 | [3] | ' | ||
Level 3 inputs, Ending balance | 4,290 | [3] | 2,040 | [3] | 4,290 | [3] | 2,040 | [3] |
Change in unrealized gains /(losses) for the period included in earnings | 313 | [2],[3] | -354 | [2],[3] | 1,444 | [2],[3] | -14 | [2],[3] |
EuroDekania [Member] | Alternative Investments [Member] | Principal Investing [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Transactions included in income | 313 | [1],[3] | -354 | [1],[3] | 1,444 | [1],[3] | -14 | [1],[3] |
Star Asia [Member] | Alternative Investments [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Level 3 inputs, Beginning balance | ' | 24,136 | [4] | 17,104 | [4] | 30,169 | [4] | |
Accretion of income | ' | ' | [1],[4] | ' | ' | [1],[4] | ||
Purchases | ' | ' | [4] | ' | ' | |||
Sales | ' | ' | -17,182 | [4] | ' | |||
Level 3 inputs, Ending balance | ' | 20,935 | [4] | ' | 20,935 | [4] | ||
Change in unrealized gains /(losses) for the period included in earnings | ' | -3,201 | [2],[4] | ' | -9,234 | [2],[4] | ||
Star Asia [Member] | Alternative Investments [Member] | Principal Investing [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Transactions included in income | ' | -3,201 | [1],[4] | 78 | [1],[4] | -9,234 | [1],[4] | |
Tiptree Financial Partners L.P. [Member] | Alternative Investments [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Level 3 inputs, Beginning balance | ' | 2,834 | [5] | ' | 2,834 | [5] | ||
Transfers out of Level 3 | ' | -2,834 | [5] | ' | -2,834 | [5] | ||
Accretion of income | ' | ' | [1],[5] | ' | ' | [1],[5] | ||
Purchases | ' | ' | [5] | ' | ' | |||
Star Asia Special Situations Fund [Member] | Alternative Investments [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Level 3 inputs, Beginning balance | ' | 2,848 | [4] | 2,747 | [4] | 2,503 | [4] | |
Accretion of income | ' | ' | [1],[4] | ' | ' | [1],[4] | ||
Purchases | ' | ' | [4] | ' | 302 | [4] | ||
Sales | ' | ' | -2,747 | [4] | ' | |||
Level 3 inputs, Ending balance | ' | 2,775 | [4] | ' | 2,775 | [4] | ||
Change in unrealized gains /(losses) for the period included in earnings | ' | -73 | [2],[4] | ' | -30 | [2],[4] | ||
Star Asia Special Situations Fund [Member] | Alternative Investments [Member] | Principal Investing [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Transactions included in income | ' | -73 | [1],[4] | ' | -30 | [1],[4] | ||
CLO's [Member] | Alternative Investments [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Level 3 inputs, Beginning balance | 7,109 | [6] | ' | ' | ' | |||
Accretion of income | 205 | [1],[6] | ' | 249 | [1],[6] | ' | ||
Purchases | 13,754 | [6] | ' | 20,819 | [6] | ' | ||
Sales | -2,281 | [6] | ' | -2,281 | [6] | ' | ||
Level 3 inputs, Ending balance | 18,793 | [6] | ' | 18,793 | [6] | ' | ||
Change in unrealized gains /(losses) for the period included in earnings | -16 | [2],[6] | ' | -16 | [2],[6] | ' | ||
CLO's [Member] | Alternative Investments [Member] | Principal Investing [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Transactions included in income | 6 | [1],[6] | ' | 6 | [1],[6] | ' | ||
CLO's [Member] | Reclassifications of Trading Securities to Other Investments [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Sales | -133 | ' | -133 | ' | ||||
CDOs [Member] | Alternative Investments [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Level 3 inputs, Beginning balance | 25 | 82 | 35 | 77 | ||||
Accretion of income | ' | ' | [1] | ' | ' | [1] | ||
Purchases | ' | ' | ' | ' | ||||
Level 3 inputs, Ending balance | 39 | 58 | 39 | 58 | ||||
Change in unrealized gains /(losses) for the period included in earnings | 14 | [2] | -24 | [2] | 4 | [2] | -19 | [2] |
CDOs [Member] | Alternative Investments [Member] | Principal Investing [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Transactions included in income | 14 | [1] | -24 | [1] | 4 | [1] | -19 | [1] |
CLO's [Member] | Trading Securities [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Level 3 inputs, Beginning balance | 134 | [6] | 259 | 186 | [6] | 295 | ||
Accretion of income | ' | ' | [1] | ' | ' | [1] | ||
Purchases | ' | ' | ' | ' | ||||
Sales | -153 | [6] | -110 | -183 | [6] | -110 | ||
Level 3 inputs, Ending balance | ' | 221 | ' | 221 | ||||
Change in unrealized gains /(losses) for the period included in earnings | ' | -38 | [2] | ' | -74 | [2] | ||
CLO's [Member] | Trading Securities [Member] | Trading Revenue [Member] | ' | ' | ' | ' | ||||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ' | ' | ' | ' | ||||
Transactions included in income | $19 | [6] | $72 | ($3) | [6] | $36 | ||
[1] | Recorded as a component of principal transactions and other income in the consolidated statement of operations. | |||||||
[2] | Represents the change in unrealized gains and losses for the period included in earnings for assets held at the end of the reporting period. | |||||||
[3] | Hybrid Securities FundbEuropean. | |||||||
[4] | Real Estate FundbAsian. | |||||||
[5] | Diversified Holding Company. | |||||||
[6] | Sales in investments-trading include $133 of an investment in a CLO that was reclassified from investments-trading to other investments, at fair value, which is included in purchases in other investments, at fair value as of June 30, 2014. |
Fair_Value_Disclosures_Quantit
Fair Value Disclosures (Quantitative Information About Level 3 Fair Value Measurements) (Details) (Significant Unobservable Inputs (Level 3) [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | Star Asia [Member] | Star Asia [Member] | Star Asia [Member] | Star Asia [Member] | Star Asia Special Situations Fund [Member] | Star Asia Special Situations Fund [Member] | Star Asia Special Situations Fund [Member] | CLO's [Member] | CLO's [Member] | CLO's [Member] | CLO's [Member] |
Minimum [Member] | Maximum [Member] | Weighted Average [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Weighted Average [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value | $17,104 | ' | ' | ' | $2,747 | ' | ' | $18,793 | ' | ' | ' |
Yield | ' | ' | ' | ' | ' | ' | ' | ' | 9.70% | 12.70% | 11.10% |
Duration | ' | ' | ' | ' | ' | ' | ' | '4 years 6 months | '3 years 6 months | '5 years | ' |
Default rate | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.00% | 3.50% | ' |
Relative fair value of assets sold | ' | 74.90% | 79.10% | ' | 12.40% | 12.00% | 12.70% | ' | ' | ' | ' |
Discount rate on debt | ' | ' | ' | 77.30% | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Disclosures_Fair_Va
Fair Value Disclosures (Fair Value, Investments, Entities That Calculate Net Asset Value Per Share) (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Other investments, at fair value | $26,446 | $26,877 | ||
Redemption frequency | ' | ' | ||
Other Investment Vehicles [Member] | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Other investments, at fair value | 4,290 | 24,043 | ||
EuroDekania [Member] | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Other investments, at fair value | 4,290 | [1] | 4,192 | [1] |
Redemption frequency | 'N/A | [2] | 'N/A | [2] |
Redemption notice period | 'N/A | [2] | 'N/A | [2] |
EuroDekania [Member] | Other Investment Vehicles [Member] | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Other investments, at fair value | 4,290 | [2] | 4,192 | [2] |
Star Asia [Member] | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Other investments, at fair value | ' | 17,104 | [3] | |
Redemption frequency | ' | 'N/A | [4] | |
Redemption notice period | ' | 'N/A | [4] | |
Star Asia [Member] | Other Investment Vehicles [Member] | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Other investments, at fair value | ' | 17,104 | [4] | |
Star Asia Special Situations Fund [Member] | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Other investments, at fair value | ' | 2,747 | [3] | |
Redemption frequency | ' | 'N/A | [5] | |
Redemption notice period | ' | 'N/A | [5] | |
Star Asia Special Situations Fund [Member] | Other Investment Vehicles [Member] | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Other investments, at fair value | ' | $2,747 | [5] | |
[1] | Hybrid Securities FundbEuropean. | |||
[2] | EuroDekaniabs investment strategy is to make investments in hybrid capital securities that have attributes of debt and equity, primarily in the form of subordinated debt issued by insurance companies, banks and bank holding companies based primarily in Western Europe; widely syndicated leveraged loans issued by European corporations; CMBS, including subordinated interests in first mortgage real estate loans; and RMBS and other ABS backed by consumer and commercial receivables. The majority of the assets are denominated in Euros and U.K. Pounds Sterling. The fair value of the investment in this category has been estimated using the net asset value per share of the investment in accordance with the bpractical expedientb provisions of FASB ASC 820. | |||
[3] | Real Estate FundbAsian. | |||
[4] | Star Asiabs investment strategy is to make investments in Asian real estate structured finance investments, including CMBS, corporate debt of REITs and real estate operating companies, whole loans, mezzanine loans, and other commercial real estate fixed income investments. On February 20, 2014, the Company completed the sale of the Companybs ownership interests in the Star Asia Group. See note 4. The Company determined the fair value of its investment in Star Asia as of December 31, 2013, by utilizing a valuation model that took into account the terms and conditions of the sale in February 2014. If the Company had used Star Asiabs unadjusted reported net asset value to determine its fair value, the carrying value of its investment in Star Asia would have been $30,261 as of December 31, 2013. | |||
[5] | The Star Asia Special Situations Fundbs investment strategy is to make investments in real estate and securities backed by real estate in Japan. The Star Asia Special Situations Fund is a closed end fund that does not allow investor redemptions. It has an initial life of three years which can be extended under certain circumstances for up to two years. As described in more detail in note 4, the Company sold its investment in Star Asia Special Situations Fund in February 2014 along with its investment in Star Asia and certain other related entities. According to ASC 820, when a sale is considered probable of the measurement date at an amount other than the underlying NAV per share, the reporting entity should not use the practical expedient in determining fair value. Therefore, the Company determined the fair value of its investment in Star Asia Special Situations Fund as of December 31, 2013, by utilizing a valuation model that took into account the terms and conditions of the sale in February 2014. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Short [Member] | Short [Member] | Long [Member] | Long [Member] | TBAs [Member] | Foreign currency forward contracts [Member] | Foreign currency forward contracts [Member] |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | JPY (¥) | JPY (¥) | |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | $7,300 | $66,300 | $13,638 | $57,108 | ' | ¥ 0 | ¥ 1,250,000 |
Market Value Underlying, Net | ' | ' | ' | ' | $411,421 | ' | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Balance Sheet Information) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Fair Value, Net | $10 | $312 |
Other Investment at Fair Value [Member] | Foreign currency forward contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Fair Value, Net | ' | 190 |
Investments-trading [Member] | TBAs [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Fair Value, Net | 20 | 188 |
Trading securities sold, not yet purchased [Member] | TBAs [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Fair Value, Net | ($10) | ($66) |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Statement Of Operations Information) (Details) (Not Designated as Hedging Instruments [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative [Line Items] | ' | ' | ' | ' |
Derivative financial instruments, net gain (loss) recognized | $753 | $1,845 | $880 | $1,655 |
Foreign currency forward contracts [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Derivative financial instruments, net gain (loss) recognized | ' | -362 | -347 | -362 |
TBAs [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Derivative financial instruments, net gain (loss) recognized | $753 | $2,207 | $1,227 | $2,017 |
Collateralized_Securities_Tran1
Collateralized Securities Transactions (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Brokers and Dealers [Abstract] | ' | ' |
Securities reverse repurchase agreements | $35,975 | $29,395 |
Fair value of securities received as collateral under reverse repurchase agreements | 38,398 | 29,575 |
Securities sold under agreements to repurchase | 36,729 | 28,748 |
Fair value of securities pledged as collateral under repurchase agreements | $39,391 | $28,591 |
Goodwill_Narrative_Details
Goodwill (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2007 |
Cira SCM [Member] | Cira SCM [Member] | |||
Goodwill [Line Items] | ' | ' | ' | ' |
Percentage of voting interests acquired | ' | ' | ' | 10.00% |
Number of shares issued in business combination | ' | ' | ' | 189,901 |
Goodwill impairment charge | $3,121 | $3,121 | $3,121 | ' |
Goodwill_Schedule_Of_Goodwill_
Goodwill (Schedule Of Goodwill) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $7,992 | $11,113 | $11,113 |
Cira SCM [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | ' | 3,121 | ' |
AFN [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 110 | 110 | ' |
JVB Holdings [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $7,882 | $7,882 | ' |
Recovered_Sheet5
Other Assets And Accounts Payable And Other Liabilities (Schedule Of Other Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of other assets | ' | ' |
Deferred costs | $590 | $644 |
Note receivable | 2,314 | 1,849 |
Prepaid expenses | 2,306 | 2,226 |
Prepaid income taxes | 48 | 146 |
Security deposits | 2,472 | 2,492 |
Miscellaneous other assets | 207 | 146 |
Cost method investment | 235 | 235 |
Furniture, equipment and leasehold improvements, net | 1,606 | 2,054 |
Intangible assets | 166 | 483 |
Equity method affiliates | ' | -31 |
Other assets | $9,944 | $10,244 |
Other_Assets_and_Accounts_Paya2
Other Assets and Accounts Payable and Other Liabilities (Schedule Of Accounts Payable And Other Liabilities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of accounts payable and other liabilities | ' | ' |
Accounts payable | $518 | $738 |
Rent payable | 826 | 1,058 |
Accrued interest payable | 325 | 376 |
Accrued interest on securities sold, not yet purchased | 440 | 255 |
Payroll taxes payable | 571 | 1,055 |
Other accrued expense | 1,809 | 4,994 |
Accounts payable and other liabilities | $4,489 | $8,476 |
Recovered_Sheet6
Investments in Equity Method Affiliates (Narrative) (Details) (EuroDekania [Member]) | Dec. 31, 2013 |
EuroDekania [Member] | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Ownership percentage of equity method affiliate | 17.00% |
Recovered_Sheet7
Investments in Equity Method Affiliates (Schedule Of Investments In Equity Method Affiliates) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | |
Begining Balance | ' | ' | ($31) | ' | |
Distributions/repayments | ' | ' | -67 | -2,881 | |
Earnings / (loss) realized | 1 | 95 | 27 | 1,614 | |
Sale | ' | ' | 71 | [1] | ' |
Ending Balance | ' | ' | ' | ' | |
Star Asia Opportunity [Member] | ' | ' | ' | ' | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | |
Begining Balance | ' | ' | 17 | ' | |
Distributions/repayments | ' | ' | -17 | ' | |
Ending Balance | ' | ' | ' | ' | |
Star Asia Capital Management [Member] | ' | ' | ' | ' | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | |
Begining Balance | ' | ' | -81 | ' | |
Distributions/repayments | ' | ' | -15 | ' | |
Earnings / (loss) realized | ' | ' | 13 | ' | |
Sale | ' | ' | 83 | [1] | ' |
Ending Balance | ' | ' | ' | ' | |
SAA Manager [Member] | ' | ' | ' | ' | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | |
Begining Balance | ' | ' | 12 | ' | |
Distributions/repayments | ' | ' | -25 | ' | |
Earnings / (loss) realized | ' | ' | 14 | ' | |
Sale | ' | ' | -1 | [1] | ' |
Ending Balance | ' | ' | ' | ' | |
Other Equity Method Investees [Member] | ' | ' | ' | ' | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | |
Begining Balance | ' | ' | 21 | ' | |
Distributions/repayments | ' | ' | -10 | ' | |
Sale | ' | ' | -11 | [1] | ' |
Ending Balance | ' | ' | ' | ' | |
[1] | See note 4. |
Investments_in_Equity_Method_A2
Investments in Equity Method Affiliates (Summarized Data Of Equity Method Investees) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Investments in Equity Method Affiliates [Abstract] | ' | ' | ' | ' | ' |
Total Assets | $25,936 | ' | $25,936 | ' | $370,388 |
Liabilities | 53 | ' | 53 | ' | 144,578 |
Equity attributable to the investees | 25,793 | ' | 25,793 | ' | 225,810 |
Non-controlling interest | 90 | ' | 90 | ' | ' |
Liabilities & Equity | 25,936 | ' | 25,936 | ' | 370,388 |
Net income / (loss) | 1,813 | 8,590 | 8,950 | -3,222 | ' |
Net income / (loss) attributable to the investees | $1,807 | $8,789 | $8,921 | ($2,666) | ' |
Variable_Interest_Entities_Sch
Variable Interest Entities (Schedule Of Variable Interest Entities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ' | ' |
Other Receivables | $2,228 | $2,323 |
Other Investments, at fair value | 18,832 | 35 |
Maximum Exposure to loss in non-consolidated VIEs | 21,060 | 2,358 |
Managed Variable Interest Entity [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Other Receivables | 2,137 | 2,239 |
Maximum Exposure to loss in non-consolidated VIEs | 2,137 | 2,239 |
Third-Party Managed Variable Interest Entity [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Other Receivables | 91 | 84 |
Other Investments, at fair value | 18,832 | 35 |
Maximum Exposure to loss in non-consolidated VIEs | $18,923 | $119 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | |
Debt Instrument [Line Items] | ' | ' | |
Repayments of Debt | $3,121 | $619 | |
Junior subordinated debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt Instrument, Face Amount | 1,489 | ' | |
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust | 48,125 | ' | |
Fair value of common securities | 0 | ' | |
10.50% Contingent convertible senior notes due 2027 [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt Instrument, Repurchased Face Amount | 3,121 | ' | |
Alesco Capital Trust I [Member] | Junior subordinated debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt Instrument, Face Amount | 870 | ' | |
Stated interest rate | 4.23% | ' | |
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust | 28,125 | [1] | ' |
Sunset Financial Statutory Trust I [Member] | Junior subordinated debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt Instrument, Face Amount | 619 | ' | |
Stated interest rate | 4.38% | ' | |
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust | $20,000 | [1] | ' |
8.00% Contingent Convertible Senior Notes Due 2018 [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt Instrument, Convertible, Conversion Price | $3 | ' | |
[1] | The outstanding par represents the total par amount of the junior subordinated notes held by two separate trusts. The Company does not consolidate these trusts. The Company holds $1,489 par value of these junior subordinated notes, comprised of $870 par value of junior subordinated notes related to Alesco Capital Trust I and $619 par value of junior subordinated notes related to Sunset Financial Statutory Trust I. These notes have a carrying value of $0. Therefore, the net par value held by third parties is $48,125. |
Debt_Debt_Outstanding_Details
Debt (Debt Outstanding) (Details) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' | |
Long-term Debt | $27,230 | $29,674 | |
Contingent convertible senior notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Current Outstanding Par | 8,248 | ' | |
Long-term Debt | 8,248 | 11,363 | |
Junior subordinated debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Current Outstanding Par | 1,489 | ' | |
Junior subordinated notes | 48,125 | ' | |
Long-term Debt | 18,982 | 18,311 | |
10.50% Contingent convertible senior notes due 2027 [Member] | Contingent convertible senior notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Long-term Debt | ' | 3,115 | |
Interest Rate Terms | 10.50% | ' | |
Debt Instrument, Interest Rate at Period End | 10.50% | [1],[2] | ' |
Maturity | 20-May-14 | ' | |
8.00% Contingent Convertible Senior Notes Due 2018 [Member] | Contingent convertible senior notes [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Current Outstanding Par | 8,248 | ' | |
Long-term Debt | 8,248 | 8,248 | |
Interest Rate Terms | 8.00% | ' | |
Debt Instrument, Interest Rate at Period End | 8.00% | [1],[3] | ' |
Maturity | 25-Sep-18 | ' | |
Alesco Capital Trust I [Member] | Junior subordinated debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Current Outstanding Par | 870 | ' | |
Junior subordinated notes | 28,125 | [4] | ' |
Long-term Debt | 11,087 | 10,697 | |
Interest Rate Terms | 4.23% | ' | |
Debt Instrument, Interest Rate at Period End | 4.23% | [1] | ' |
Maturity | 30-Jul-37 | ' | |
Sunset Financial Statutory Trust I [Member] | Junior subordinated debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Current Outstanding Par | 619 | ' | |
Junior subordinated notes | 20,000 | [4] | ' |
Long-term Debt | $7,895 | $7,614 | |
Interest Rate Terms | 4.38% | ' | |
Debt Instrument, Interest Rate at Period End | 4.38% | [1] | ' |
Maturity | 30-Mar-35 | ' | |
[1] | Represents the interest rate as of the last day of the reporting period. | ||
[2] | On May 20, 2014, the Company redeemed the entire $3,121 aggregate principal amount of the New Notes outstanding. | ||
[3] | The holders of the 8.0% Convertible Notes may convert all or any part of the outstanding principal amount of the 8.0% Convertible Notes at any time prior to maturity into shares of the Companybs common stock at a conversion price of $3.00 per share, subject to customary anti-dilution adjustments. | ||
[4] | The outstanding par represents the total par amount of the junior subordinated notes held by two separate trusts. The Company does not consolidate these trusts. The Company holds $1,489 par value of these junior subordinated notes, comprised of $870 par value of junior subordinated notes related to Alesco Capital Trust I and $619 par value of junior subordinated notes related to Sunset Financial Statutory Trust I. These notes have a carrying value of $0. Therefore, the net par value held by third parties is $48,125. |
Equity_Schedule_Of_Unrestricte
Equity (Schedule Of Unrestricted Common Stock Activity) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Balance, Shares | 14,398,579 |
Shares issued in connection with the redemption of Operating LLC units | 186,342 |
Vesting of shares | 393,818 |
Shares withheld for employee taxes | -31,426 |
Balance, Shares | 14,947,313 |
Equity_Operating_LLC_Membershi
Equity (Operating LLC Membership Units) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Permanent Equity [Line Items] | ' |
Membership Units Received Net Of Surrenders | 534,093 |
Unit Issuance And Surrender Agreement [Member] | ' |
Permanent Equity [Line Items] | ' |
Membership Units Received Net Of Surrenders | 347,751 |
JVB Holdings Agreement [Member] | ' |
Permanent Equity [Line Items] | ' |
Membership Units Received Net Of Surrenders | 186,342 |
Equity_Schedule_Of_Effects_Of_
Equity (Schedule Of Effects Of Changes In Ownership Interest Subsidiary) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Equity [Abstract] | ' | ' | ' | ' |
Net income / (loss) attributable to IFMI | ($2,123) | ($4,702) | ($4,221) | ($9,202) |
Increase in IFMI's paid in capital for the acquisition / (surrender) of additional units of consolidated subsidiary, net | ' | ' | 250 | 634 |
Changes from net income / (loss) attributable to IFMI and transfers (to) from non-controlling interest | ' | ' | ($3,971) | ($8,568) |
Equity_Narrative_Details
Equity (Narrative) (Details) (USD $) | 6 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2011 |
Restricted Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Additional paid-in capital [Member] | Additional paid-in capital [Member] | Non-controlling Interest [Member] | Non-controlling Interest [Member] | JVB [Member] | JVB [Member] | ||
Restricted Stock [Member] | Restricted Stock [Member] | |||||||||
Permanent Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of non-controlling interest, net | ' | ' | ($14) | ($25) | $250 | $634 | ($236) | ($609) | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | ' | 186,342 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 559,020 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | ' | ' | ' | ' | ' | ' | ' | ' | 186,342 | ' |
Shares issued in connection with the redemption of Operating LLC units | 186,342 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | 186,342 | ' |
Net_Capital_Requirements_Detai
Net Capital Requirements (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
JVB [Member] | ' |
Net Capital Requirements [Line Items] | ' |
Actual Net Capital or Liquid Capital | $9,728 |
Excess | 9,466 |
Cohen and Company Financial Limited [Member] | ' |
Net Capital Requirements [Line Items] | ' |
Actual Net Capital or Liquid Capital | 3,049 |
Amount Required | 1,982 |
Excess | $1,067 |
Earnings_Loss_Per_Common_Share2
Earnings / (Loss) Per Common Share (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Unrestricted Units Exchangeable into Shares | 5,324,140 | [1] | 5,324,090 | [1] | 5,324,137 | [1] | 5,324,090 | [1] |
Stock Compensation Plan [Member] | ' | ' | ' | ' | ||||
Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 71,418 | 371,778 | 145,966 | 344,834 | ||||
Convertible Debt Securities [Member] | ' | ' | ' | ' | ||||
Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,749,167 | ' | 2,749,167 | ' | ||||
Board of Directors, Vice Chairman [Member] | ' | ' | ' | ' | ||||
Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Unrestricted Units Exchangeable into Shares | 4,983,557 | 4,983,557 | 4,983,557 | 4,983,557 | ||||
[1] | The Operating LLC membership units not held by IFMI (that is, those held by the non-controlling interest for the six and three months ended June 30, 2014 and 2013) may be redeemed and exchanged into shares of the Company on a one-to-one basis. The 4,983,557 Operating LLC membership units held by DanielB G. Cohen, the Vice Chairman of the Companybs Board of Directors and of the board of managers of the Operating LLC, President and Chief Executive Officer of the Companybs European Business, and the President of CCFL, are redeemable at Mr.B Cohenbs option, at any time, for (i)B cash in an amount equal to the average of the per share closing prices of the Companybs common stock for the ten consecutive trading days immediately preceding the date the Company receives Mr.B Cohenbs redemption notice, or (ii)B at the Companybs option, one share of the Companybs common stock, subject, in each case, to appropriate adjustment upon the occurrence of an issuance of additional shares of the Companyb common stock as a dividend or other distribution on the Companybs outstanding common stock, or a further subdivision or combination of the outstanding shares of the Companybs common stock. The Operating LLC membership units held by other members of the Operating LLC have the same redemption rights as described above. These membership units are not included in the computation of basic earnings per share. These membership units enter into the computation of diluted net income / (loss) per common share when the effect is dilutive using the if-converted method. |
Earnings_Loss_Per_Common_Share3
Earnings / (Loss) Per Common Share (Schedule of Earnings / (Loss) Per Common Share) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Earnings / (Loss) Per Common Share [Abstract] | ' | ' | ' | ' | ||||
Net income / (loss) attributable to IFMI | ($2,123) | ($4,702) | ($4,221) | ($9,202) | ||||
Add/ (deduct): Income / (loss) attributable to non-controlling interest attributable to Operating LLC membership units exchangeable into IFMI shares | -734 | [1] | -2,158 | [1] | -1,441 | [1] | -4,249 | [1] |
Add / (deduct): Adjustment | -11 | [2] | 8 | [2] | -43 | [2] | -6 | [2] |
Net income / (loss) on a fully converted basis | ($2,868) | ($6,852) | ($5,705) | ($13,457) | ||||
Weighted average common shares outstanding - Basic | 15,105,751 | 11,658,512 | 14,987,079 | 11,504,613 | ||||
Unrestricted Operating LLC membership units exchangeable into IFMI shares | 5,324,140 | [1] | 5,324,090 | [1] | 5,324,137 | [1] | 5,324,090 | [1] |
Weighted average common shares outstanding - Diluted | 20,429,891 | [3] | 16,982,602 | [3] | 20,311,216 | [3] | 16,828,703 | [3] |
Net income / (loss) per common share - Basic | ($0.14) | ($0.40) | ($0.28) | ($0.80) | ||||
Net income / (loss) per common share - Diluted | ($0.14) | ($0.40) | ($0.28) | ($0.80) | ||||
[1] | The Operating LLC membership units not held by IFMI (that is, those held by the non-controlling interest for the six and three months ended June 30, 2014 and 2013) may be redeemed and exchanged into shares of the Company on a one-to-one basis. The 4,983,557 Operating LLC membership units held by DanielB G. Cohen, the Vice Chairman of the Companybs Board of Directors and of the board of managers of the Operating LLC, President and Chief Executive Officer of the Companybs European Business, and the President of CCFL, are redeemable at Mr.B Cohenbs option, at any time, for (i)B cash in an amount equal to the average of the per share closing prices of the Companybs common stock for the ten consecutive trading days immediately preceding the date the Company receives Mr.B Cohenbs redemption notice, or (ii)B at the Companybs option, one share of the Companybs common stock, subject, in each case, to appropriate adjustment upon the occurrence of an issuance of additional shares of the Companyb common stock as a dividend or other distribution on the Companybs outstanding common stock, or a further subdivision or combination of the outstanding shares of the Companybs common stock. The Operating LLC membership units held by other members of the Operating LLC have the same redemption rights as described above. These membership units are not included in the computation of basic earnings per share. These membership units enter into the computation of diluted net income / (loss) per common share when the effect is dilutive using the if-converted method. | |||||||
[2] | An adjustment is included for the following: (i)B if the Operating LLC membership units had been converted at the beginning of the period, the Company would have incurred a higher income tax expense or realized a higher income tax benefit, as applicable; and (ii)B to adjust the non-controlling interest amount to be consistent with the weighted average share calculation. | |||||||
[3] | For the six months ended June 30, 2014 and 2013, weighted average common shares outstanding excludes a total of 145,966 and 344,834 shares, respectively, representing restricted Operating LLC membership units, restricted IFMI common stock, and restricted units of IFMI common stock which would be anti-dilutive because of the Companybs net loss. For the three months ended June 30, 2014 and 2013, weighted average common shares outstanding excludes a total of 71,418 shares and 371,778 shares respectively, representing restricted Operating LLC membership units, restricted IFMI common stock, and restricted units of IFMI common stock which would be anti-dilutive because of the Companybs net loss. For the six and three months ended June 30, 2014, weighted average common shares outstanding also excludes 2,749,167 shares from the assumed conversion of the 8.0% Convertibles Notes because the inclusion of the converted shares would be anti-dilutive. |
Commitments_and_Contingencies_
Commitments and Contingencies (Narrative) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Commitments And Contingencies [Abstract] | ' |
Income Tax Examination, Estimate of Possible Loss | $4,683 |
Segment_and_Geographic_Informa1
Segment and Geographic Information (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 |
Segment and Geographic Information [Abstract] | ' | ' |
Goodwill impairment charge | $3,121 | $3,121 |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Schedule Of Segment Reporting Information) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net trading | $6,620 | $11,630 | $13,549 | $24,689 | ||||
Asset management | 3,386 | 4,155 | 7,643 | 8,917 | ||||
New issue and advisory | 2,388 | 572 | 2,718 | 1,567 | ||||
Principal transactions and other income | 1,841 | -2,623 | 3,512 | -7,413 | ||||
Total revenues | 14,235 | 13,734 | 27,422 | 27,760 | ||||
Total operating expenses | 15,895 | 19,632 | 30,774 | 40,730 | ||||
Operating income / (loss) | -1,660 | -5,898 | -3,352 | -12,970 | ||||
Interest expense | -1,109 | -1,035 | -2,238 | -2,064 | ||||
Income / (loss) from equity method affiliates | 1 | 95 | 27 | 1,614 | ||||
Income / (loss) before income taxes | -2,768 | -6,838 | -5,563 | -13,420 | ||||
Income tax expense / (benefit) | 89 | 34 | 99 | 46 | ||||
Net income / (loss) | -2,857 | -6,872 | -5,662 | -13,466 | ||||
Less: Net income / (loss) attributable to the non-controlling interest | -734 | -2,170 | -1,441 | -4,264 | ||||
Net income / (loss) attributable to IFMI | -2,123 | -4,702 | -4,221 | -9,202 | ||||
Depreciation and amortization (included in total operating expense) | 267 | 359 | 598 | 669 | ||||
Operating Segments [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net trading | 6,620 | 11,630 | 13,549 | 24,689 | ||||
Asset management | 3,386 | 4,155 | 7,643 | 8,917 | ||||
New issue and advisory | 2,388 | 572 | 2,718 | 1,567 | ||||
Principal transactions and other income | 1,841 | -2,623 | 3,512 | -7,413 | ||||
Total revenues | 14,235 | 13,734 | 27,422 | 27,760 | ||||
Total operating expenses | 12,774 | 16,785 | 23,892 | 34,311 | ||||
Operating income / (loss) | 1,461 | -3,051 | 3,530 | -6,551 | ||||
Interest expense | ' | -59 | ' | -116 | ||||
Income / (loss) from equity method affiliates | 1 | 95 | 27 | 1,614 | ||||
Income / (loss) before income taxes | 1,462 | -3,015 | 3,557 | -5,053 | ||||
Income tax expense / (benefit) | ' | -17 | ' | -42 | ||||
Net income / (loss) | 1,462 | -2,998 | 3,557 | -5,011 | ||||
Less: Net income / (loss) attributable to the non-controlling interest | ' | -12 | ' | -15 | ||||
Net income / (loss) attributable to IFMI | 1,462 | -2,986 | 3,557 | -4,996 | ||||
Depreciation and amortization (included in total operating expense) | 192 | 286 | 455 | 521 | ||||
Unallocated [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total operating expenses | 3,121 | [1] | 2,847 | [1] | 6,882 | [1] | 6,419 | [1] |
Operating income / (loss) | -3,121 | [1] | -2,847 | [1] | -6,882 | [1] | -6,419 | [1] |
Interest expense | -1,109 | [1] | -976 | [1] | -2,238 | [1] | -1,948 | [1] |
Income / (loss) before income taxes | -4,230 | [1] | -3,823 | [1] | -9,120 | [1] | -8,367 | [1] |
Income tax expense / (benefit) | 89 | [1] | 51 | [1] | 99 | [1] | 88 | [1] |
Net income / (loss) | -4,319 | [1] | -3,874 | [1] | -9,219 | [1] | -8,455 | [1] |
Less: Net income / (loss) attributable to the non-controlling interest | -734 | [1] | -2,158 | [1] | -1,441 | [1] | -4,249 | [1] |
Net income / (loss) attributable to IFMI | -3,585 | [1] | -1,716 | [1] | -7,778 | [1] | -4,206 | [1] |
Depreciation and amortization (included in total operating expense) | 75 | [1] | 73 | [1] | 143 | [1] | 148 | [1] |
Capital Markets [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net trading | 6,620 | 11,630 | 13,549 | 24,689 | ||||
New issue and advisory | 2,388 | 572 | 2,718 | 1,567 | ||||
Principal transactions and other income | 158 | 89 | 523 | 144 | ||||
Total revenues | 9,166 | 12,291 | 16,790 | 26,400 | ||||
Total operating expenses | 8,186 | 14,021 | 17,139 | 28,536 | ||||
Operating income / (loss) | 980 | -1,730 | -349 | -2,136 | ||||
Interest expense | ' | -55 | ' | -109 | ||||
Income / (loss) before income taxes | 980 | -1,785 | -349 | -2,245 | ||||
Income tax expense / (benefit) | ' | -17 | ' | -42 | ||||
Net income / (loss) | 980 | -1,768 | -349 | -2,203 | ||||
Less: Net income / (loss) attributable to the non-controlling interest | ' | -12 | ' | -15 | ||||
Net income / (loss) attributable to IFMI | 980 | -1,756 | -349 | -2,188 | ||||
Depreciation and amortization (included in total operating expense) | 184 | 193 | 410 | 390 | ||||
Asset Management Segment [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Asset management | 3,386 | 4,155 | 7,643 | 8,917 | ||||
Principal transactions and other income | 397 | 388 | 778 | 898 | ||||
Total revenues | 3,783 | 4,543 | 8,421 | 9,815 | ||||
Total operating expenses | 4,588 | 2,681 | 6,706 | 5,613 | ||||
Operating income / (loss) | -805 | 1,862 | 1,715 | 4,202 | ||||
Interest expense | ' | -4 | ' | -7 | ||||
Income / (loss) from equity method affiliates | ' | 122 | 27 | 332 | ||||
Income / (loss) before income taxes | -805 | 1,980 | 1,742 | 4,527 | ||||
Net income / (loss) | -805 | 1,980 | 1,742 | 4,527 | ||||
Net income / (loss) attributable to IFMI | -805 | 1,980 | 1,742 | 4,527 | ||||
Depreciation and amortization (included in total operating expense) | 8 | 93 | 45 | 131 | ||||
Principal investing [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Principal transactions and other income | 1,286 | -3,100 | 2,211 | -8,455 | ||||
Total revenues | 1,286 | -3,100 | 2,211 | -8,455 | ||||
Total operating expenses | ' | 83 | 47 | 162 | ||||
Operating income / (loss) | 1,286 | -3,183 | 2,164 | -8,617 | ||||
Income / (loss) from equity method affiliates | 1 | -27 | ' | 1,282 | ||||
Income / (loss) before income taxes | 1,287 | -3,210 | 2,164 | -7,335 | ||||
Net income / (loss) | 1,287 | -3,210 | 2,164 | -7,335 | ||||
Net income / (loss) attributable to IFMI | $1,287 | ($3,210) | $2,164 | ($7,335) | ||||
[1] | Unallocated includes certain expenses incurred by indirect overhead and support departments (such as the executive, finance, legal, information technology, human resources, risk, compliance, and other similar overhead and support departments). Some of the items not allocated include: (1)B operating expenses (such as cash compensation and benefits, equity-based compensation expense, professional fees, travel and entertainment, consulting fees, and rent) related to support departments excluding certain departments that directly support the Capital Markets business segment; (2)B interest expense on debt; and (3)B income taxes. Management does not consider these items necessary for an understanding of the operating results of these business segments and such amounts are excluded in business segment reporting to the Chief Operating Decision Maker. |
Segment_and_Geographic_Informa3
Segment and Geographic Information (Reconciliation Of Assets From Segment To Consolidated) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | ||
In Thousands, unless otherwise specified | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | ||
Total assets | $214,714 | $217,050 | $357,682 | ||
Investment in equity method affiliates | ' | ' | -52 | ||
Goodwill | 7,992 | 11,113 | 11,113 | ||
Intangible assets | 166 | ' | 634 | ||
Operating Segments [Member] | ' | ' | ' | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | ||
Total assets | 207,064 | ' | 348,053 | ||
Investment in equity method affiliates | ' | ' | -52 | ||
Goodwill | 7,992 | [1] | ' | 11,113 | [1] |
Intangible assets | 166 | [1] | ' | 634 | [1] |
Unallocated [Member] | ' | ' | ' | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | ||
Total assets | 7,650 | [2] | ' | 9,629 | [2] |
Capital Markets [Member] | ' | ' | ' | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | ||
Total assets | 176,519 | ' | 310,458 | ||
Goodwill | 7,937 | [1] | ' | 7,937 | [1] |
Intangible assets | 166 | [1] | ' | 332 | [1] |
Asset Management Segment [Member] | ' | ' | ' | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | ||
Total assets | 3,893 | ' | 8,888 | ||
Investment in equity method affiliates | ' | ' | -69 | ||
Goodwill | 55 | [1] | ' | 3,176 | [1] |
Intangible assets | ' | ' | 302 | [1] | |
Principal investing [Member] | ' | ' | ' | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | ||
Total assets | 26,652 | ' | 28,707 | ||
Investment in equity method affiliates | ' | ' | $17 | ||
[1] | Goodwill and intangible assets as of June 30, 2014 and 2013 are allocated to the Capital Markets and Asset Management business segments as indicated in the table from above. Asset management total operating expenses include an impairment charge of $3,121 for the six and three months ended June 30, 2014 related to the impairment of goodwill attributable to Cira SCM. | ||||
[2] | Unallocated assets primarily include (1)B amounts due from related parties; (2)B furniture and equipment, net; and (3)B other assets that are not considered necessary for an understanding of business segment assets and such amounts are excluded in business segment reporting to the Chief Operating Decision Maker. |
Segment_and_Geographic_Informa4
Segment and Geographic Information (Revenue By Geographic Area) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total Revenues | $14,235 | $13,734 | $27,422 | $27,760 |
UNITED STATES | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total Revenues | 12,600 | 9,812 | 23,289 | 21,209 |
Europe [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total Revenues | 1,635 | 3,140 | 4,009 | 5,496 |
Asia [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total Revenues | ' | $782 | $124 | $1,055 |
Supplemental_Cash_Flow_Disclos1
Supplemental Cash Flow Disclosure (Details) (USD $) | 6 Months Ended | 3 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 |
Total Stockholders' Equity [Member] | Additional paid-in capital [Member] | Additional paid-in capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-controlling Interest [Member] | Non-controlling Interest [Member] | Star Asia Manager [Member] | |||
Debt Conversion [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest paid | $1,569 | $1,522 | ' | ' | ' | ' | ' | ' | ' | ' |
Income taxes paid | 28 | 281 | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax refunds | 24 | 19 | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition / (surrender) of additional units of consolidated subsidiary, net | 250 | 634 | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of non-controlling interest, net | ' | ' | 236 | 250 | 634 | -14 | -25 | -236 | -609 | ' |
Reclassification of equity method investee | ' | ' | ' | ' | ' | ' | ' | ' | ' | $705 |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
EBC Family Trust [Member] | EBC Family Trust [Member] | Star Asia Manager [Member] | Star Asia Manager [Member] | Star Asia [Member] | EuroDekania Limited [Member] | EuroDekania Limited [Member] | Deep Value GP [Member] | Deep Value GP II [Member] | Star Asia Opportunity [Member] | Star Asia Capital Management [Member] | Star Asia Special Situations Fund [Member] | Star Asia Special Situations Fund [Member] | S.A.A. Manager [Member] | SAP GP [Member] | TBBK [Member] | TBBK [Member] | TBBK [Member] | TBBK [Member] | TBBK [Member] | Mead Park Capital [Member] | Mead Park Capital [Member] | Mead Park Capital [Member] | Mead Park Capital [Member] | Star Asia And Related Entities [Member] | Contingent convertible senior notes [Member] | Contingent convertible senior notes [Member] | ||||||
EBC Family Trust [Member] | Mead Park Capital [Member] | |||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage of equity method affiliate | ' | ' | ' | ' | ' | ' | ' | 100.00% | 50.00% | 28.00% | 17.00% | 17.00% | 50.00% | 40.00% | 28.00% | 33.00% | ' | 2.00% | 33.00% | 33.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities sold under agreements to repurchase | ' | $36,729 | $28,748 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,911 | ' | $15,911 | ' | $6,445 | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Related Parties | ' | ' | ' | ' | ' | ' | 2,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,848 | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% |
Investments / advances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 302 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Expense, Related Party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85 | 74 | 191 | 93 | ' | 136 | ' | 270 | ' | ' | ' | ' |
Cash and cash equivalents | ' | 12,928 | 13,161 | 9,916 | 14,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74 | ' | 74 | ' | 52 | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,746 | ' | ' | ' | ' | ' |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $78 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $78 | ' | ' |
Related_Party_Transactions_Sch
Related Party Transactions (Schedule Of Related Party Transactions) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Net trading | $6,620 | $11,630 | $13,549 | $24,689 | |||
Income / (loss) from equity method affiliates | 1 | 95 | 27 | 1,614 | |||
TBBK [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Net trading | 1 | 375 | 23 | 401 | |||
Interest expense incurred | 85 | 74 | 191 | 93 | |||
Star Asia [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Management fee revenue | ' | 792 | [1] | 125 | [1] | 1,069 | [1] |
Principal transactions and other income, Gain/(Loss) | ' | -3,201 | [1] | ' | -9,234 | [1] | |
Star Asia Manager [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Income / (loss) from equity method affiliates | ' | ' | ' | 158 | [1],[2] | ||
Star Asia SPV [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Income / (loss) from equity method affiliates | ' | -27 | ' | 1,287 | |||
Star Asia Opportunity [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Income / (loss) from equity method affiliates | 1 | 1 | ' | -5 | |||
Star Asia Capital Management [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Income / (loss) from equity method affiliates | ' | 37 | [1] | 13 | [1] | 71 | [1] |
Star Asia Special Situations Fund [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Principal transactions and other income, Gain/(Loss) | ' | -73 | [1] | ' | -30 | [1] | |
S.A.A. Manager [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Income / (loss) from equity method affiliates | ' | 86 | [1] | 14 | [1] | 109 | [1] |
EuroDekania [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Principal transactions and other income, Gain/(Loss) | 313 | 41 | 1,444 | 381 | |||
Deep Value [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Income / (loss) from equity method affiliates | ' | -2 | ' | -6 | |||
E.B.C. [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Interest expense incurred | 56 | ' | 111 | ' | |||
Mead Park Capital [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Interest expense incurred | 136 | ' | 270 | ' | |||
Affiliated Entity [Member] | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | |||
Management fee revenue | ' | 792 | 125 | 1,069 | |||
Net trading | 1 | 375 | 23 | 401 | |||
Principal transactions and other income, Gain/(Loss) | 313 | -3,233 | 1,444 | -8,883 | |||
Income / (loss) from equity method affiliates | 1 | 95 | 27 | 1,614 | |||
Interest expense incurred | $192 | ' | $381 | ' | |||
[1] | Effective February 20, 2014, the Company sold its interest in these entities. See note A from above and note 4. | ||||||
[2] | Beginning March 1, 2013, Star Asia Manager was consolidated by the Company as a result of the Star Asia Manager Repurchase Transaction. Prior to March 1, 2013, Star Asia Manager was treated as an equity method investment. See paragraph A above. |
Due_from_Due_to_Related_Partie1
Due from / Due to Related Parties (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Related Party Transaction [Line Items] | ' | ' | |
Total Due from Related Parties | $349 | $883 | |
EuroDekania Limited [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Total Due from Related Parties | ' | 18 | |
Star Asia And Related Entities [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Total Due from Related Parties | ' | 450 | [1] |
Cohen Brothers Financial, LLC [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Total Due from Related Parties | ' | 4 | |
Employees [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Total Due from Related Parties | $349 | $411 | |
[1] | Related entities include Star Asia Capital Management and SAA Manager. |