Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 04, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | INSTITUTIONAL FINANCIAL MARKETS, INC. | ||
Entity Central Index Key | 1270436 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | Q4 | ||
Current Fiscal Year End Date | -19 | ||
Trading Symbol | ifmi | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 15,382,811 | ||
Entity Public Float | $19.60 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $12,253 | $13,161 |
Receivables from brokers, dealers, and clearing agencies | 1,636 | 1,846 |
Due from related parties | 552 | 883 |
Other receivables | 9,398 | 7,762 |
Investments-trading | 126,748 | 117,618 |
Other investments, at fair value | 28,399 | 26,877 |
Receivables under resale agreements | 101,675 | 29,395 |
Goodwill | 7,992 | 11,113 |
Other assets | 7,434 | 8,395 |
Total assets | 296,087 | 217,050 |
Liabilities | ||
Payables to brokers, dealers, and clearing agencies | 48,013 | 30,711 |
Accounts payable and other liabilities | 5,103 | 8,476 |
Accrued compensation | 4,054 | 4,224 |
Trading securities sold, not yet purchased | 48,740 | 49,504 |
Securities sold under agreements to repurchase | 101,856 | 28,748 |
Deferred income taxes | 3,888 | 4,530 |
Debt | 27,939 | 29,674 |
Total liabilities | 239,593 | 155,867 |
Commitments and contingencies (See Note 26) | ||
Stockholders' Equity: | ||
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, 15,017,219 and 14,809,705 shares issued and outstanding, respectively, including 158,438 and 411,126 unvested restricted share awards, respectively | 15 | 14 |
Additional paid-in capital | 74,604 | 73,866 |
Accumulated other comprehensive loss | -772 | -636 |
Accumulated deficit | -25,617 | -21,754 |
Total stockholders' equity | 48,235 | 51,495 |
Non-controlling interest | 8,259 | 9,688 |
Total equity | 56,494 | 61,183 |
Total liabilities and equity | $296,087 | $217,050 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 15,017,219 | 14,809,705 |
Common Stock, shares outstanding | 15,017,219 | 14,809,705 |
Common Stock, unvested restricted share awards | 158,438 | 411,126 |
Series E 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 $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Net trading | $28,056 | $38,528 | $69,486 |
Asset management | 14,496 | 19,239 | 23,172 |
New issue and advisory | 5,219 | 6,418 | 5,021 |
Principal transactions and other income | 7,979 | -6,668 | -2,439 |
Total revenues | 55,750 | 57,517 | 95,240 |
Operating expenses | |||
Compensation and benefits | 29,764 | 47,167 | 62,951 |
Business development, occupancy, equipment | 3,896 | 5,817 | 5,795 |
Subscriptions, clearing, and execution | 8,516 | 10,822 | 11,446 |
Professional fees and other operating | 9,062 | 13,410 | 13,448 |
Depreciation and amortization | 1,103 | 1,405 | 1,305 |
Impairment of goodwill/intangible asset | 3,121 | ||
Total operating expenses | 55,462 | 78,621 | 94,945 |
Operating income / (loss) | 288 | -21,104 | 295 |
Non-operating income / (expense) | |||
Interest expense, net | -4,401 | -4,193 | -3,732 |
Other income / (expense) | -15 | -4,271 | |
Income / (loss) from equity method affiliates | 27 | 1,828 | 5,052 |
Income/ (loss) before income tax expense / (benefit) | -4,086 | -23,484 | -2,656 |
Income tax expense / (benefit) | -414 | -3,565 | -615 |
Net income / (loss) | -3,672 | -19,919 | -2,041 |
Less: Net income / (loss) attributable to the non-controlling interest | -1,087 | -6,601 | -1,073 |
Net income / (loss) attributable to IFMI | -2,585 | -13,318 | -968 |
Income / (loss) per common share-basic: | |||
Basic Income / (loss) per common share | ($0.17) | ($1.08) | ($0.09) |
Weighted average shares outstanding-basic | 14,998,620 | 12,340,468 | 10,732,723 |
Income / (loss) per common share-diluted: | |||
Diluted Income / (loss) per common share | ($0.17) | ($1.08) | ($0.09) |
Weighted average shares outstanding-diluted | 20,322,750 | 17,664,558 | 15,984,921 |
Dividends declared per common share | $0.08 | $0.08 | $0.08 |
Comprehensive income / (loss): | |||
Net income / (loss) | -3,672 | -19,919 | -2,041 |
Other comprehensive income / (loss) item: | |||
Foreign currency translation adjustments, net of tax of $0 | -168 | -30 | 216 |
Other comprehensive income / (loss), net of tax of $0 | -168 | -30 | 216 |
Comprehensive income / (loss) | -3,840 | -19,949 | -1,825 |
Less: comprehensive income / (loss) attributable to the non-controlling interest | -1,129 | -6,617 | -1,011 |
Comprehensive income / (loss) attributable to IFMI | ($2,711) | ($13,332) | ($814) |
Consolidated_Statements_Of_Ope1
Consolidated Statements Of Operations And Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Operations [Abstract] | |||
Foreign currency translation adjustments, tax | $0 | $0 | $0 |
Other comprehensive income / (loss), tax | $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] | Treasury Stock [Member] | Total Stockholders' Equity [Member] | Non-controlling Interest [Member] | Total Permanent Equity [Member] | Redeemable non-controlling interest (Temporary Equity) [Member] | Total | ||||
In Thousands | |||||||||||||||
Balance at Dec. 31, 2011 | $5 | $10 | $63,032 | ($5,121) | ($626) | ($328) | $56,972 | $20,436 | $77,408 | $14,026 | |||||
Measurement period adjustment | -93 | ||||||||||||||
Net income (loss) | -968 | -968 | -857 | -1,825 | -216 | -2,041 | |||||||||
Other comprehensive income / (loss) | 154 | [1] | 154 | [1] | 62 | [1] | 216 | [1] | 216 | ||||||
Retirement of treasury stock | -328 | 328 | |||||||||||||
Acquisition / (surrender) of additional units of consolidated subsidiary, net | 928 | -23 | 905 | -905 | -6,446 | ||||||||||
Equity-based compensation and vesting of shares | 1 | 1,004 | 1,005 | 556 | 1,561 | -290 | |||||||||
Shares withheld for employee taxes | -135 | -135 | -64 | -199 | |||||||||||
Purchase of non-controlling interest, net | -6,152 | ||||||||||||||
Dividends/Distributions | -953 | -953 | -420 | -1,373 | |||||||||||
Balance at Dec. 31, 2012 | 5 | 11 | 64,829 | -7,370 | -495 | 56,980 | 18,808 | 75,788 | 829 | ||||||
Net income (loss) | -13,318 | -13,318 | -6,592 | -19,910 | -9 | -19,919 | |||||||||
Other comprehensive income / (loss) | -14 | [1] | -14 | [1] | -16 | [1] | -30 | [1] | -30 | ||||||
Shares issued in connection with private placement, net | 2 | 5,049 | 5,051 | 5,051 | |||||||||||
Acquisition / (surrender) of additional units of consolidated subsidiary, net | 2,764 | -127 | 2,637 | -2,637 | |||||||||||
Equity-based compensation and vesting of shares | 1 | 1,334 | 1,335 | 599 | 1,934 | -31 | |||||||||
Shares withheld for employee taxes | -110 | -110 | -43 | -153 | |||||||||||
Purchase of non-controlling interest, net | -789 | ||||||||||||||
Dividends/Distributions | -1,066 | -1,066 | -431 | -1,497 | |||||||||||
Balance at Dec. 31, 2013 | 5 | 14 | 73,866 | -21,754 | -636 | 51,495 | 9,688 | 61,183 | 61,183 | ||||||
Net income (loss) | -2,585 | -2,585 | -1,087 | -3,672 | -3,672 | ||||||||||
Other comprehensive income / (loss) | -126 | [1] | -126 | [1] | -42 | [1] | -168 | [1] | -168 | ||||||
Shares issued in connection with private placement, net | 5,498 | ||||||||||||||
Acquisition / (surrender) of additional units of consolidated subsidiary, net | 215 | -10 | 205 | -205 | |||||||||||
Equity-based compensation and vesting of shares | 1 | 971 | 972 | 347 | 1,319 | ||||||||||
Shares withheld for employee taxes | -64 | -64 | -23 | -87 | |||||||||||
Purchase and retirement of common stock | -384 | -384 | -384 | ||||||||||||
Dividends/Distributions | -1,278 | -1,278 | -419 | -1,697 | |||||||||||
Balance at Dec. 31, 2014 | $5 | $15 | $74,604 | ($25,617) | ($772) | $48,235 | $8,259 | $56,494 | $56,494 | ||||||
[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 $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income / (loss) | ($3,672) | ($19,919) | ($2,041) |
Adjustments to reconcile net income / (loss) to net cash provided by (used in) operating activities: | |||
Other (income) / expense | 15 | -86 | |
Equity-based compensation | 1,319 | 1,902 | 1,271 |
Accretion of income on other investments, at fair value | -1,577 | ||
Realized loss / (gain) on other investments | 144 | -978 | -1,728 |
Change in unrealized (gain) loss on other investments, at fair value | -675 | 12,377 | 6,325 |
Depreciation and amortization | 1,103 | 1,405 | 1,305 |
Impairment of goodwill/intangible asset | 3,121 | ||
Amortization of discount on debt | 1,386 | 906 | 189 |
(Income) / loss from equity method affiliates | -27 | -1,828 | -5,052 |
Change in operating assets and liabilities, net: | |||
(Increase) decrease in other receivables | -1,636 | 1,653 | -2,851 |
(Increase) decrease in investments-trading | -9,130 | 58,521 | -51,593 |
(Increase) decrease in other assets | -155 | -596 | 1,583 |
(Increase) decrease in receivables under resale agreement | -72,280 | 40,715 | 59,868 |
Change in receivables from / payables to related parties, net | -47 | -195 | 223 |
Increase (decrease) in accrued compensation | -170 | -4,007 | -497 |
Increase (decrease) in accounts payable and other liabilities | -2,804 | -4,860 | -1,544 |
Increase (decrease) in trading securities sold, not yet purchased, net | -764 | 5,337 | -55,446 |
Change in receivables from / payables to brokers, dealers, and clearing agencies, net | 17,512 | -55,081 | 130,316 |
Increase (decrease) in securities sold under agreement to repurchase | 73,108 | -41,525 | -64,597 |
Increase (decrease) in deferred income taxes | -642 | -2,073 | -897 |
Net cash provided by (used in) operating activities | 4,114 | -8,231 | 14,748 |
Investing activities | |||
Cash acquired from acquisition | 679 | ||
Purchase of other investments, at fair value | -25,290 | -2,035 | -390 |
Sales and returns of principal of other investments, at fair value | 5,947 | 2,082 | 379 |
Proceeds from sale of Star Asia and related entities, net | 19,924 | ||
Sales of cost method investment | 1,937 | ||
Investment in equity method affiliates | -30 | -4,716 | |
Return from equity method affiliates | 67 | 3,094 | 12,093 |
Purchase of furniture, equipment, and leasehold improvements | -184 | -849 | -193 |
Net cash provided by (used in) investing activities | 464 | 2,941 | 9,110 |
Financing activities | |||
Proceeds from issuance of convertible debt | 8,248 | ||
Repayment and repurchase of debt | -3,121 | -6,072 | -16,270 |
Payments for deferred issuance and financing costs | -670 | ||
Proceeds from private placement, net of offering costs of $447 | 5,051 | ||
Cash used to net share settle equity awards | -87 | -153 | -199 |
Purchase of common stock for treasury | -384 | ||
PrinceRidge non-controlling interest redemptions, net | -789 | -6,152 | |
PrinceRidge mandatorily redeemable equity interest repayments | -86 | -3,723 | |
IFMI non-controlling interest distributions and redemptions | -419 | -431 | -420 |
IFMI dividends | -1,278 | -1,066 | -953 |
Net cash provided by (used in) financing activities | -5,289 | 4,032 | -27,717 |
Effect of exchange rate on cash | -197 | -81 | 138 |
Net increase (decrease) in cash and cash equivalents | -908 | -1,339 | -3,721 |
Cash and cash equivalents, beginning of period | 13,161 | 14,500 | 18,221 |
Cash and cash equivalents, end of period | $12,253 | $13,161 | $14,500 |
Consolidated_Statements_Of_Cas1
Consolidated Statements Of Cash Flows (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Consolidated Statements of Cash Flows [Abstract] | |
Payments of Stock Issuance Costs | $447 |
Organization_And_Nature_Of_Ope
Organization And Nature Of Operations | 12 Months Ended |
Dec. 31, 2014 | |
Organization And Nature Of Operations [Abstract] | |
Organization And Nature Of Operations | 1. ORGANIZATION AND NATURE OF OPERATIONS |
The Formation Transaction | |
Cohen Brothers, LLC (“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 membership units directly from Cohen Brothers. 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 were not held by AFN were 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 December 31, 2014, the Company had $4.30 billion in assets under management (“AUM”) of which 99.7%, or $4.28 billion, was in collateralized debt obligations (“CDOs”). | |
In these financial statements, the “Company” refers to IFMI and its subsidiaries on a consolidated basis; “IFMI, LLC” (formerly Cohen Brothers, LLC) or the “Operating LLC” refers to 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 and CCPR changed its name from C&Co/PrinceRidge LLC to J.V.B. Financial Group, LLC. Also, beginning 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 as JVB. | |
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 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, ABS, MBS, RMBS, CDOs, CLOs, CBOs, CMOs, municipal securities, TBAs, SBA loans, U.S. government bonds, U.S. government agency securities, brokered deposits and CDs for small banks, and hybrid capital of financial institutions including TruPS, whole loans, and other structured financial instruments. The Company had offered execution and brokerage services for equity derivative products until December 31, 2012, when the Company sold its equity derivatives brokerage business to a newly formed entity owned by two of the Company’s former employees. As of December 31, 2014, the Company carried out its capital market activities primarily through its subsidiaries: JVB in the United States and CCFL in Europe. See note 5 regarding sale of equity derivatives business and sale of European operations. | |
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 that it managed. After the sale of the Star Asia Group (see note 5), the Company refocused its principal investing portfolio on products that it does not manage, which has consisted primarily of investments in CLOs. The focus on CLO investments capitalizes on the Company’s strengths in structured credit and leveraged finance. | |
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. | |
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 financial instruments; | |
Principal Investing | |
•gains and losses (unrealized and realized) and income and expense earned on securities classified as other investments, at fair value; and | |
• income or loss from equity method affiliates. | |
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; | |
The activities noted above are carried out through the following main operating subsidiaries of the Company as of December 31, 2014 | |
1.Cohen & Company Financial Management, LLC is a wholly owned subsidiary of the Operating LLC and acts as asset manager and investment advisor to the Alesco I through IX CDOs. It also served until February 22, 2013 as a service provider to the manager of the Alesco X — XVII CDOs. Alesco CDOs invest in bank and insurance company TruPS as well as insurance company subordinated debt. | |
2.Dekania Capital Management, LLC is a wholly owned subsidiary of the Operating LLC and acts as asset manager and investment advisor to the Company’s Dekania and pre-2007 Dekania Europe CDOs. Dekania CDOs invest primarily in insurance TruPS and insurance company subordinated debt denominated in U.S. Dollars. Dekania Europe CDOs invest primarily in TruPS and insurance company subordinated debt denominated in Euros. | |
3.Cira SCM, LLC (formerly Strategos Capital Management, LLC) (“Cira SCM”), is a wholly owned subsidiary of the Operating LLC and acts as asset manager and investment advisor to the Company’s CDOs that invest primarily in high grade and mezzanine asset backed securities. In addition, Cira SCM is a party to a revenue share arrangement with Strategos Capital Management, LLC, a third party asset manager founded by former Company employees, related to a series of closed-end distressed debt funds and separately managed accounts previously managed by the Company. See note 5. | |
4.PrinceRidge was a wholly owned subsidiary of the Operating LLC acquired by the Company in May 2011. See note 4. PrinceRidge provided trade execution to predominantly institutional investors including broker-dealers, commercial banks, asset managers, and other financial institutions and specializes in the following products: corporate bonds and loans, ABS, MBS, RMBS, CDOs, CLOs, CBOs, TBAs, SBA loans, U.S. government bonds, U.S. government agency securities, brokered deposits and CDs for small banks, hybrid capital of financial institutions including TruPS, whole loans, and other structured financial instruments. PrinceRidge carries out these activities primarily through its wholly owned subsidiary, CCPR. CCPR was a member of FINRA and SIPC until CCPR and JVB merged in January 2014. During the consolidation, the Company significantly downsized its workforce and eliminated certain business lines, including the majority of the Company’s investment banking operation. See note 7. | |
5.JVB is a wholly owned subsidiary of the Operating LLC acquired by the Company effective January 1, 2011. JVB is a securities broker-dealer registered with the SEC and is a member of FINRA and the SIPC. JVB provides trade execution to broker-dealers and institutions and specializes in the following products: high grade corporate bonds, high yield corporate bonds, municipal securities, ABS, MBS, RMBS, CMOs, U.S. government bonds, U.S. government agency securities, whole loans, and other structured financial instruments. In January 2014, CCPR and JVB merged resulting in the Company having one broker-dealer subsidiary in the United States operating as JVB. JVB focuses primarily on mortgages, rates, corporate and structured products in the wholesale and institutional marketplaces, as well as providing financing and advisory services. | |
6.Prior to March 1, 2013, Cohen Asia Investments Ltd. owned 50% of Star Asia Management, Ltd. (“Star Asia Manager) and effective March 1, 2013 Cohen Asia Investment Ltd. owned 100% of Star Asia Manager, which is the external manager of Star Asia Finance, Ltd. (“Star Asia”) and earns management fees and incentive fees related to this entity. Star Asia invests in Asian commercial real estate structured finance products, including commercial mortgage backed securities (“CMBS”), corporate debt of REITs and real estate operating companies, B notes, mezzanine loans and other commercial real estate fixed income investments. On February 20, 2014, the Company sold its ownership interests in the Star Asia, Star Asia Manager, and certain other entities. See note 5. | |
7.CCFL is a FCA Regulated Firm in the United Kingdom and acts as the external manager of EuroDekania Limited (“EuroDekania”) and earns management fees and incentive fees related to this entity. EuroDekania invests primarily in hybrid capital securities of European bank and insurance companies, CLOs, CMBS, RMBS, and widely syndicated leverage loans. | |
Since 2007, CCFL has acted as asset manager and investment advisor to the Company’s 2007 and later Dekania Europe CDOs. Dekania Europe CDOs invest primarily in TruPS and insurance company subordinated debt denominated in Euros. CCFL also carries out the Company’s Capital Markets business segment activities in Europe including brokerage, advisory, and new issue services. | |
8.Cohen & Compagnie SAS (formerly Cohen Fréres SAS), the Company’s French subsidiary, acts as a credit research advisor to Dekania Capital Management, LLC and CCFL in analyzing the creditworthiness of insurance companies and financial institutions in Europe with respect to all assets included in the Dekania Europe CDOs. | |
See note 5 for discussion of pending sale of CCFL and Cohen and Compagnie. | |
Basis_Of_Presentation
Basis Of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Organization And Nature Of Operations [Abstract] | |
Basis Of Presentation | 2. BASIS OF PRESENTATION |
The accounting and reporting policies of the Company conform to U.S. GAAP. Certain prior period amounts have been reclassified to conform to the current period presentation. | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||
Summary Of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
A . Principles of Consolidation | ||||||||||
The consolidated financial statements reflect the accounts of IFMI and its wholly and majority owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||
B . Use of Estimates | ||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make assumptions and estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||
C . Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents consist of cash and short-term, highly liquid investments that have original maturities of three months or less. Most cash and cash equivalents are in the form of short-term investments and are not held in federally insured bank accounts. | ||||||||||
D. Adoption of New Accounting Standards | ||||||||||
In July 2012, the FASB issued ASU No. 2012-02, Intangibles — Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”), which provides an option for companies to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If a company concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the company is not required to take further action. However, if a company concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount in accordance with Subtopic 350-30. A company also has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative assessment in any subsequent period. The Company’s adoption of the provisions of ASU 2012-02 effective January 1, 2013 did not have an effect on the Company’s consolidated financial position, results of operations, or cash flows. | ||||||||||
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, results of operations, cash flows, or related disclosures. | ||||||||||
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 position, results of operations, cash flows, or related 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, results of operations, cash flows, or related disclosures. | ||||||||||
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 financial position, results of operations, cash flows, or related disclosures. | ||||||||||
E. Financial Instruments | ||||||||||
The Company accounts for its investment securities at fair value under various accounting literature including FASB Accounting Standards Codification (“ASC”) 320, Investments — Debt and Equity Securities (“FASB ASC 320”), pertaining to investments in debt and equity securities and the fair value option of financial instruments in FASB ASC 825, Financial Instruments (“FASB ASC 825”). The Company also accounts for certain assets at fair value under the applicable industry guidance, namely FASB ASC 946, Financial Services-Investment Companies (“FASB ASC 946”). | ||||||||||
Certain of the Company’s assets and liabilities are required to be measured at fair value. For those assets and liabilities, the Company determines fair value according to the fair value measurement provisions included in FASB ASC 820, Fair Value Measurements and Disclosures (“FASB ASC 820”). FASB ASC 820 establishes a single authoritative definition of fair value, sets out a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and requires additional disclosures about fair value measurements. The definition of fair value focuses on the price that would be received to sell the asset or paid to transfer the liability between market participants at the measurement date (an exit price). An exit price valuation will include margins for risk even if they are not observable. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels (“level 1, 2 and 3”). | ||||||||||
In addition the Company has elected to account for certain of its other financial assets at fair value under the fair value option provisions included in FASB ASC 825. This standard provides companies the option of reporting certain instruments at fair value (with changes in fair value recognized in the statement of operations) that were previously either carried at cost, not recognized on the financial statements, or carried at fair value with changes in fair value recognized as a component of equity rather than in the statement of operations. The election is made on an instrument-by-instrument basis and is irrevocable. | ||||||||||
See note 9 for the information regarding the effects of applying the fair value option to the Company’s financial instruments on the Company’s consolidated financial statements for the year ended December 31, 2014. | ||||||||||
The changes in fair value (realized and unrealized gains and losses) of these instruments are recorded in principal transactions and other income in the consolidated statements of operations. See notes 8 and 9 for further information. | ||||||||||
FASB ASC 320 requires that the Company classify its investments as either (i) held to maturity, (ii) available for sale, or (iii) trading. This determination is made at the time a security is purchased. FASB ASC 320 requires that both trading and available for sale securities are to be carried at fair value. However, in the case of trading assets, both unrealized and realized gains and losses are recorded in the statement of operations. For available for sale securities, only realized gains and losses are recognized in the statement of operations while unrealized gains and losses are recognized as a component of other comprehensive income. | ||||||||||
In all the periods presented, all securities were either classified as trading or available for sale. No securities were classified as held to maturity. Furthermore, the Company elected the fair value option, in accordance with FASB ASC 825, for all securities that were classified as available for sale. Therefore, for all periods presented, all securities owned by the Company were accounted for at fair value with unrealized and realized gains and losses recorded in the statement of operations. | ||||||||||
All securities that are classified as trading are included in investments-trading. However, when the Company acquires an investment that is classified as available for sale, but for which the Company elected the fair value option under FASB ASC 825, the investment is classified as other investments, at fair value. | ||||||||||
The determination of 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, when independent broker quotations or market price quotations from third party pricing services are unavailable, valuation models prepared by the Company’s management. These models include estimates and the valuations derived from them could differ materially from amounts realizable in an open market exchange. | ||||||||||
Also, from time to time, the Company may be deemed to be the primary beneficiary of a variable interest entity and may be required to consolidate it and its investments under the provisions included in FASB ASC 810, Consolidation (“FASB ASC 810”). See notes 3-J and 16. In those cases, the Company’s classification of the assets as trading, other investments, at fair value, available for sale, or held to maturity will depend on the intended use of the investment by the variable interest entity. | ||||||||||
Investments-trading | ||||||||||
Unrealized and realized gains and losses on securities classified as investments-trading are recorded in net trading in the consolidated statements of operations. | ||||||||||
Other Investments, at fair value | ||||||||||
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. | ||||||||||
Trading Securities Sold, Not Yet Purchased | ||||||||||
Trading securities sold, not yet purchased represent obligations of the Company to deliver the specified security at the contracted price, thereby creating a liability to purchase the security in the market at prevailing prices. The Company is obligated to acquire the securities sold short at prevailing market prices, which may exceed the amount reflected on the consolidated balance sheets. Unrealized and realized gains and losses on trading securities sold, not yet purchased are recorded in net trading in the consolidated statement of operations. See notes 8 and 9. | ||||||||||
F. Investment Vehicles | ||||||||||
As of December 31, 2014 and 2013, the Company had investments in several Investment Vehicles. When making an investment in an Investment Vehicle, the Company must determine the appropriate method of accounting for the investment. In most cases, the Company will either (i) consolidate the Investment Vehicle, (ii) account for its investment under the equity method of accounting or (iii) account for its investment as a marketable equity security under the provisions of FASB ASC 320. In the case of (ii) and (iii), the Company may account for its investment at fair value under the fair value option election included in FASB ASC 825. | ||||||||||
The Company may treat an investment in equity of an entity under the equity method of accounting when it has significant influence (as described in the FASB Codification) in the investee. In addition, the Company may elect to account for its investment at fair value under the fair value option included in FASB ASC 825. | ||||||||||
The Company consolidates an investment when it has control of the investee. In general, control is interpreted as owning in excess of 50% of the voting interest of an investee. However, this percentage is only a guideline and the Company considers the unique facts and circumstances of each investment. In addition, if the Company determines the investee is a variable interest entity and the Company is the primary beneficiary, the Company will consolidate the investee under the requirements for the consolidation of variable interest entities included in FASB ASC 810. | ||||||||||
If the Company determines that it is not required to consolidate an investee and does not have significant influence over the investee, it will account for the investment as a marketable equity security under the provisions included in FASB ASC 320. | ||||||||||
In general, if the investment was deemed to be an equity method investment and fair value was readily determinable, the Company made the fair value election. In all cases, if the investment was deemed to be a marketable equity security, the Company made the fair value election. | ||||||||||
The following discussion describes the Company’s accounting policy as it pertains to certain Investment Vehicles, the associated management contracts, and other related transactions. All of the Investment Vehicles described below are considered related parties of the Company. See note 29. | ||||||||||
Star Asia Related Entities | ||||||||||
For the three years ended December 31, 2014, the Company had an investment in several entities that either (i) invest in securities or real estate in Japan or (ii) provide management services to entities that invest in securities or real estate in Japan. | ||||||||||
On February 20, 2014, the Company completed the sale of the Company’s ownership interests in all of the Star Asia related entities except for its remaining interest in Star Asia Opportunity. Star Asia Opportunity was liquidated and made its final distribution in 2014. | ||||||||||
The combination of interests sold on February 20, 2014 is referred to as the “Star Asia Group.” The Star Asia Group included the Company’s interest in the following entities (each defined individually below): Star Asia, Star Asia Manager, Star Asia Special Situations Fund, SAA Manager, SAP GP, and Star Asia Capital Management. | ||||||||||
See notes 5 and 15. | ||||||||||
Star Asia Finance, Limited (“Star Asia”) | ||||||||||
The Company had an investment in Star Asia. Star Asia invests primarily in Asian commercial real estate structured finance products, including CMBS, corporate debt of REITs and real estate operating companies, B notes, mezzanine loans, and other commercial real estate fixed income investments. | ||||||||||
The Company held no interest in Star Asia as of December 31, 2014. The Company held a 28% interest in Star Asia as of December 31, 2013. | ||||||||||
The Company sold its interest in this entity on February 20, 2014. From January 1, 2012 until its sale on February 20, 2014, the Company accounted for its investment in Star Asia as an equity method investment for which it made the fair value election. Changes in fair value are recorded in earnings under the fair value option provisions included in FASB ASC 825. Because it was accounted for at fair value, it was included as a component of other investments, at fair value in the consolidated balance sheet. See notes 3-E, 8 and 9 for further information. | ||||||||||
Star Asia Management, LTD (“Star Asia Manager”) | ||||||||||
The Company had an investment in Star Asia Manager. Star Asia Manager serves as external manager of Star Asia and Star Asia SPV (see below). For the period from January 1, 2012 to March 1, 2013, the Company owned a 50% interest in Star Asia Manager and accounted for its investment under the equity method with no fair value option election. From March 1, 2013 until its sale on February 20, 2014, the Company owned 100% of Star Asia Manager and included it in its consolidated statements. The Company held no interest in Star Asia Manager as of December 31, 2014. | ||||||||||
Star Asia SPV | ||||||||||
The Company had an investment in Star Asia SPV. Star Asia SPV held investments in Asian commercial real estate. During the period from January 1, 2012 until its final distribution in April 2013, the Company accounted for its interest in Star Asia SPV under the equity method with no fair value option election. The Company held no interest in Star Asia SPV as of December 31, 2014 and 2013. | ||||||||||
Star Asia Opportunity, LLC (“Star Asia Opportunity”) | ||||||||||
The Company had an investment in Star Asia Opportunity. Star Asia Opportunity held investments in seven real estate properties in Tokyo, Japan. For the period from January 1, 2012 until its final distribution in May 2014, the Company accounted for its interest in Star Asia Opportunity under the equity method with no fair value election. The Company held no interest in Star Asia Opportunity as of December 31, 2014. The Company held a 28% interest in Star Asia Opportunity as of December 31, 2013. | ||||||||||
Star Asia Opportunity II, LLC (“Star Asia Opportunity II”) | ||||||||||
The Company had an investment in Star Asia Opportunity II. Star Asia Opportunity II held interests in real estate property in Japan. For the period from January 1, 2012 to December 20, 2012, the Company accounted for its interest in Star Asia Opportunity II under the equity method with no fair value election. | ||||||||||
On December 20, 2012, Star Asia Opportunity II completed a reorganization whereby its assets were contributed into a subsidiary of the Star Asia Special Situations Fund (see below). The net effect of this reorganization to the Company was that the Company exchanged its ownership interest in Star Asia Opportunity II for cash and an interest in the Star Asia Special Situations Fund. See note 15. The Company held no interest in Star Asia Opportunity II as of December 31, 2014 and 2013. | ||||||||||
Star Asia Capital Management LLC (“Star Asia Capital Management”) | ||||||||||
The Company had an investment in Star Asia Capital Management. Star Asia Capital Management served as the external manager of Star Asia Opportunity. It also served as external manager of Star Asia Opportunity II prior to December 20, 2012. The Company sold its interest in this entity on February 20, 2014. From January 1, 2012 until its sale on February 20, 2014, the Company accounted for its interest in Star Asia Capital Management under the equity method with no fair value election. The Company held no interest in Star Asia Capital Management as of December 31, 2014. The Company held a 33% interest in Star Asia Capital Management as of December 31, 2013. | ||||||||||
Star Asia Japan Special Situations LP (“Star Asia Special Situations Fund”) | ||||||||||
The Company had an investment in Star Asia Special Situations Fund. The Star Asia Special Situations Fund is an investment fund that primarily invests in real estate and securities backed by real estate in Japan. The Company sold its interest in this entity on February 20, 2014. From the Company’s initial investment in December 2012 until its sale on February 20, 2014, the Company accounted for this investment under the equity method of accounting. The Company elected to carry its investment in the Star Asia Special Situations Fund at fair value with changes in fair value recorded in earnings under the fair value option provisions included in FASB ASC 825. Because it is accounted for at fair value, it is included as a component of other investments, at fair value in the consolidated balance sheet. The Company held no interest in Star Asia Special Situations Fund as of December 31, 2014. The Company held a 2% interest in Star Asia Special Situations Fund as of December 31, 2013. | ||||||||||
Star Asia Advisors LTD (“SAA Manager”) | ||||||||||
The Company had an investment in SAA Manager. SAA Manager serves as the external manager of the Star Asia Special Situations Fund. The Company sold its interest in this entity on February 20, 2014. From its initial investment in December 2012 until its sale on February 20, 2014, the Company accounted for its interest in SAA Manager under the equity method of accounting with no fair value election. The Company held no interest in SAA Manager as of December 31, 2014. The Company held a 33% interest in SAA Manager as of December 31, 2013. | ||||||||||
Star Asia Partners LTD (“SAP GP”) | ||||||||||
The Company had an investment in SAP GP. SAP GP serves as the general partner for the Star Asia Special Situations Fund. The Company sold its interest in this entity on February 20, 2014. From its initial investment in December 2012 until its sale on February 20, 2014, the Company accounted for its interest in SAP GP under the equity method of accounting with no fair value election. The Company held no interest in SAP GP as of December 31, 2014. The Company held a 33% interest in SAP GP as of December 31, 2013. | ||||||||||
EuroDekania Limited and EuroDekania (Cayman) Ltd. (“EuroDekania”) | ||||||||||
The Company has an investment in, and serves as external manager, of EuroDekania. 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 U.K. Pounds Sterling. | ||||||||||
As of December 31, 2014 and 2013, the Company directly owned approximately 17% of EuroDekania’s outstanding shares. The Company accounts for its investment in EuroDekania as a marketable equity security classified as available for sale for which the fair value option was elected effective January 1, 2008. Changes in fair value are recorded in earnings under the fair value option provisions included in FASB ASC 825. See notes 3-E, 8 and 9 for further information. The Company also serves as external manager of EuroDekania. See note 5 regarding sale of European operations which includes the management contract for EuroDekania but excludes the Company’s investment in EuroDekania. | ||||||||||
Tiptree Financial Partners, L.P. (“Tiptree”) | ||||||||||
The Company has an investment in Tiptree. Tiptree is a diversified holding company. As of December 31, 2014 and 2013, the Company owned approximately 1% of Tiptree. | ||||||||||
During 2013, Tiptree completed a transaction with its publicly-traded, majority-owned subsidiary, Care Investment Trust Inc., which combined their businesses into a single operating company. In connection with the closing of this transaction, the company, formerly known as Care Investment Trust Inc., changed its name to “Tiptree Financial Inc.” Tiptree Financial Inc. (“Tiptree Inc.”) (NASDAQ: TIPT), a Maryland corporation, is a diversified financial services holding company that was organized in 2007, and primarily focuses on the acquisition of majority control equity interests in financial services businesses. | ||||||||||
For the period from January 1, 2012 until December 31, 2014, the Company accounted for its investment in Tiptree under the cost method of accounting. However, the Company elected to carry its investment at fair value with changes in fair value recorded in earnings under the fair value option provisions included in FASB ASC 825. Because it is accounted for at fair value, it is included as a component of other investments, at fair value in the consolidated balance sheet. See notes 3-E, 8 and 9 for further information. | ||||||||||
G. 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 its 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 as a 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 sensitive investments; and (iii) arising from the Company’s facilitation of mortgage-backed trading. Derivatives entered into by the Company may include (i) foreign currency forward contracts; (ii) EuroDollar futures; (iii) purchase and sale agreements of TBAs; and (iv) other extended settlement trades. | ||||||||||
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. From January 1, 2012 until December 31, 2014, all TBA transactions entered into by the Company have been accounted for as derivatives. The settlement of these transactions is not expected to have a material effect on the Company’s consolidated financial statements. | ||||||||||
In addition to TBAs as part of the Company’s broker-dealer operations, the Company may from time to time enter into other securities or loan trades that do not settle within the normal securities settlement period. In those cases, the purchase or sale of the security or loan is not recorded until the settlement date. However, from the trade date until the settlement date, the Company’s interest in the security is accounted for as a derivative as either a forward purchase commitment or forward sale commitment. | ||||||||||
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. See note 10. | ||||||||||
The Company does not offset the fair value of derivatives form the right to reclaim or the obligation to return collateral as allowed for in ASC 815. | ||||||||||
H. Furniture, Equipment, and Leasehold Improvements, Net | ||||||||||
Furniture, equipment, and leasehold improvements are stated at cost, less accumulated depreciation and amortization, and are included as a component of other assets in the consolidated balance sheets. Furniture and equipment are depreciated on a straight line basis over their estimated useful life of 3 to 5 years. Leasehold improvements are amortized over the lesser of their useful life or lease term, which generally ranges from 5 to 10 years. | ||||||||||
I. Goodwill and Intangible Assets with Indefinite Lives | ||||||||||
Goodwill represents the amount of the purchase price in excess of the fair value assigned to the individual assets acquired and liabilities assumed in various acquisitions completed by the Company. See note 4 and note 12. In accordance with FASB ASC 350, Intangibles — Goodwill and Other (“FASB ASC 350”), goodwill and intangible assets deemed to have indefinite lives are not amortized to expense but rather are analyzed for impairment. | ||||||||||
The Company measures its goodwill for 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 goodwill impairment test two-step process requires management to make judgments in determining what assumptions to use in the calculation. The first step in the process is to identify potential goodwill impairment by comparing the fair value of the reporting unit to its carrying value. If the carrying value is less than fair value, the Company would complete step two in the impairment review process, which measures the amount of goodwill impairment. | ||||||||||
The Company includes intangible assets comprised primarily of its broker-dealer licenses in other assets on its consolidated balance sheets that it considers to have indefinite useful lives. The Company reviews these assets for impairment on an annual basis. | ||||||||||
J. Variable Interest Entities | ||||||||||
FASB ASC 810, Consolidation (“FASB ASC 810”), contains the guidance surrounding the definition of variable interest entities (“VIEs”), the definition of variable interests, 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 has included the required disclosures for VIEs in its consolidated financial statements for the year ended December 31, 2014. See note 16 for further details. | ||||||||||
K . Collateralized Securities Transactions | ||||||||||
The Company may enter into transactions involving purchases of securities under agreements to resell (“reverse repurchase agreements” or “receivables under resale agreements”) or sales of securities under agreements to repurchase (“repurchase agreements”) that 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. See note 11. | ||||||||||
L . Revenue Recognition | ||||||||||
Net trading | ||||||||||
Net trading includes: (i) all gains, losses, and income (interest and dividend) from securities classified as investments-trading and trading securities sold, not yet purchased; (ii) interest income and expense from collateralized securities transactions; and (iii) commissions and riskless trading profits. Riskless trades are transacted through the Company’s proprietary account with a customer order in hand, resulting in little or no market risk to the Company. Transactions that settle in the regular way are recognized on a trade date basis. Extended settlement transactions are recognized on a settlement date basis. The investments classified as trading are carried at fair value. The determination of fair value is based on quoted market prices of an active exchange, independent broker market quotations, market price quotations from third party pricing services or, when independent broker quotations or market price quotations from third party pricing services are unavailable, valuation models prepared by the Company’s management. The models include estimates, and the valuations derived from them could differ materially from amounts realizable in an open market exchange. Net trading is reduced by interest expense which is directly incurred to purchase income generating assets related to trading activities such as margin interest. Such interest expense is recorded on an accrual basis. | ||||||||||
Asset management | ||||||||||
Asset management revenue consists of CDO asset management fees, fees earned for management of the Company’s permanent capital vehicles and investment funds, fees earned under a service arrangement with another CDO asset manager, and other asset management fees. CDO asset management fees are earned for providing ongoing asset management services to the trust. In general, the Company earns a senior asset management fee, a subordinated asset management fee, and an incentive asset management fee. | ||||||||||
The senior asset management fee is generally senior to all the securities in the CDO capital structure and is recognized on a monthly basis as services are performed. The senior asset management fee is generally paid on a quarterly basis. | ||||||||||
The subordinated asset management fee is an additional payment for the same services but has a lower priority in the CDO cash flows. If the trust experiences a certain level of asset defaults, these fees may not be paid. There is no recovery by the trust of previously paid subordinated asset management fees. It is the Company’s policy to recognize these fees on a monthly basis as services are performed. The subordinated asset management fee is generally paid on a quarterly basis. However, if the Company determines that the subordinated asset management fee will not be paid (which generally occurs on the quarterly payment date), the Company will stop recognizing additional subordinated asset management fees on that particular trust and will reverse any subordinated asset management fees that are accrued and unpaid. The Company will begin accruing the subordinated asset management fee again if payment resumes and, in management’s estimate, continued payment is reasonably assured. If payment were to resume but the Company was unsure of continued payment, it would recognize the subordinated asset management fee as payments were received and would not accrue such fees on a monthly basis. | ||||||||||
The incentive management fee is an additional payment, made typically after five to seven years of the life of a CDO, which is based on the clearance of an accumulated cash return on investment (“Hurdle Return”) received by the most junior CDO securities holders. It is an incentive for the Company to perform in its role as asset manager by minimizing defaults and maximizing recoveries. The incentive management fee is not ultimately determined or payable until the achievement of the Hurdle Return by the most junior CDO securities holders. The Company does not recognize incentive fee revenue until the Hurdle Return is achieved and the amount of the incentive management fee is determinable and payment is reasonably assured. | ||||||||||
Other asset management fees represents fees earned for the base and incentive management of various other Investment Vehicles that the Company manages. See note 3-F. | ||||||||||
New issue and advisory | ||||||||||
New issue and advisory revenue includes: (i) origination fees for corporate debt issues originated by the Company; (ii) revenue from advisory services; and (iii) new issue revenue associated with arranging the issuance of and placing newly created financial instruments. New issue and advisory revenue is recognized when all services have been provided and payment is earned. | ||||||||||
Principal transactions and other income | ||||||||||
Principal transactions include all gains, losses, and income (interest and dividend) from financial instruments classified as other investments, at fair value in the consolidated balance sheets. | ||||||||||
The investments classified as other investments, at fair value are carried at fair value. The determination of fair value is based on quoted market prices of an active exchange, independent broker market quotations, market price quotations from third party pricing services, or, when independent broker quotations or market price quotations from third party pricing services are unavailable, valuation models prepared by the Company’s management. These models include estimates, and the valuations derived from them could differ materially from amounts realizable in an open market exchange. Dividend income is recognized on the ex-dividend date. | ||||||||||
Other income / (loss) includes foreign currency gains and losses, interest earned on cash and cash equivalents, and other miscellaneous income. | ||||||||||
M. Interest Expense, net | ||||||||||
Interest expense incurred other than interest income and expense included as a component of net trading (described in 3-L above) is recorded on an accrual basis and presented in the consolidated statements of operations as a separate non-operating expense. See notes 17 and 18. | ||||||||||
N. Leases | ||||||||||
The Company is a tenant pursuant to several commercial office leases. All of the Company’s leases are currently treated as operating leases. The Company records rent expense on a straight-line basis taking into account minimum rent escalations included in each lease. Any rent expense recorded in excess of amounts currently paid is recorded as deferred rent and included as a component of accounts payable and other liabilities in the consolidated balance sheets. | ||||||||||
O. Redeemable Non-Controlling Interest | ||||||||||
The redeemable non-controlling interest represented the equity interests of PrinceRidge that were not owned by the Company. The members of PrinceRidge had the right to withdraw from PrinceRidge and require PrinceRidge to redeem the interests for cash over a contractual payment period. | ||||||||||
The capital account of a member who had not withdrawn was treated as a conditionally redeemable equity interest. As such, the Company accounted for these interests as temporary equity under Accounting Series Release 268 (“ASR 268”). These interests were shown outside of the permanent equity of IFMI in its consolidated balance sheet as redeemable non-controlling interest. | ||||||||||
The capital account of a member who had withdrawn was treated as a mandatorily redeemable equity interest. As such, the Company accounted for these interests as liabilities as a component of accounts payable and other liabilities in the consolidated balance sheets. Upon notification of withdrawal, the Company would reclassify the member’s equity interest form temporary equity to accounts payable and other liabilities. During the period from notification of withdrawal until final repayment, the member continued to participate in earnings and losses of PrinceRidge. Any earnings allocated to the member that increased the amount owed to the member were treated as interest expense. Any losses allocated to the member that reduced the amount owed to the member were treated as interest income. | ||||||||||
During 2013, the Company acquired all of the outstanding equity interests of PrinceRidge. As of December 31, 2014 and 2013, the Company owned 100% of PrinceRidge. See note 18 | ||||||||||
P. Non-Controlling Interest | ||||||||||
Subsequent to the consummation of the Merger on December 16, 2009, member interests in the Operating LLC, other than the interests held by the Company, are treated as a non-controlling interest. As of December 31, 2014 and 2013, the Company directly owned approximately 73.8% and 73.2%, respectively, of the Operating LLC. See note 1. | ||||||||||
Q. Equity-Based Compensation | ||||||||||
The Company accounts for equity-based compensation issued to its employees using the fair value based methodology prescribed by the provisions related to share-based payments included in FASB ASC 718, Compensation-Stock Compensation (“FASB ASC 718”). Through the periods presented herein, the Company has issued the following types of instruments: (i) “Restricted Units” that include both actual membership interests of the Operating LLC or interests that represent the right to receive common shares of IFMI, both of which may be subject to certain restrictions; (ii) “Restricted Stock” that are shares of IFMI’s Common Stock; and (iii) stock options of IFMI. | ||||||||||
When issuing equity compensation, the Company first determines the fair value of the Restricted Units or Restricted Stock or stock options granted. Once the fair value of the equity-based awards is determined, the Company determines whether the grants qualify for liability or equity treatment. The individual rights of the equity grants are the determining factors of the appropriate treatment (liability or equity). In general terms, if the equity-based awards granted have certain features (like put or cash settlement options) that give employees the right to redeem the grants for cash instead of equity of the Company, the grants will require liability treatment. Otherwise, equity treatment is generally appropriate. | ||||||||||
If the grants qualify for equity treatment, the value of the grant is recorded as an expense as part of compensation and benefits in the consolidated statements of operations. The expense is recorded ratably over the service period as defined in FASB ASC 718, which is generally the vesting period. The offsetting entry is to stockholders’ equity or non-controlling interest. In the case of grants that qualify for equity treatment, compensation expense is fixed on the date of grant. The only subsequent adjustments made would be to account for differences between actual forfeitures of grants when an employee leaves the Company and initial estimate of forfeitures. | ||||||||||
If the grants were to qualify for liability treatment, the treatment is the same as above except that the offsetting entry is to liability for equity compensation. In addition, in the case of grants that qualify for liability treatment, the Company would adjust the total compensation and the liability for equity compensation to account for subsequent changes in fair value as well as forfeitures as described in the preceding paragraph. | ||||||||||
From time to time, the Company has issued equity to non-employees as compensation for services. The Company follows the provisions of FASB ASC 505-50, Equity-Based Payments to Non Employees (“FASB ASC 505-50”). In those cases, the accounting treatment is materially the same as described for employees except that the fair value of the grant is determined at the earlier of (i) the performance commitment date; or (ii) the actual completion date of services. FASB ASC 505-50 describes the performance commitment date as the date when performance by the non-employee is probable because of sufficiently large disincentives in the event of nonperformance. If the sole remedy for the non-employee’s lack of performance is either the non-employee’s forfeiture of the equity instruments or the entity’s ability to sue the non-employee, those remedies should not, by themselves, be considered sufficiently large disincentives to nonperformance. When the Company has issued non employees grants, generally it has determined that the measurement date is the actual date of completion of services, which in the Company’s case, is the vesting date of the underlying grant. | ||||||||||
R. Accounting for Income Taxes | ||||||||||
The Company’s majority owned subsidiary, the Operating LLC, is treated as a pass-through entity for U.S. federal income tax purposes and in most of the states in which it does business. It is, however, subject to entity level income taxes in the United Kingdom, Spain, France, New York City, Pennsylvania, Philadelphia, and Illinois. Beginning on April 1, 2006, the Company qualified for Keystone Opportunity Improvement Zone (“KOZ”) benefits, which exempts the Operating LLC and its members from Philadelphia and Pennsylvania state income and capital stock franchise tax liabilities. The Company’s current lease in Philadelphia will expire on April 30, 2016. However, assuming the Company extends its lease, it will be entitled to KOZ benefits through December 31, 2018. | ||||||||||
For tax purposes, AFN contributed its assets and certain of its liabilities to Cohen Brothers in exchange for an interest in Cohen Brothers on December 16, 2009. AFN was organized and had been operated as a REIT for United States federal income tax purposes and therefore was not subject to U.S. federal income tax to the extent of its distributions to stockholders and as long as certain asset, income, distribution, and share ownership tests were met. Effective as of January 1, 2010, the Company ceased to qualify as a REIT and is instead treated as a C corporation for United States federal income tax purposes. | ||||||||||
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the U.S. GAAP and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||||||||||
The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such a determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial operations. In the event the Company were to determine that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance that would reduce the provision for income taxes. | ||||||||||
The Company’s policy is to record penalties and interest as a component of provision for income taxes in the consolidated statements of operations. | ||||||||||
S. Other Comprehensive Income / (Loss) | ||||||||||
The Company reports the components of comprehensive income / (loss) within the consolidated statements of operations and comprehensive income / (loss). Comprehensive income / (loss) includes net income / (loss) and foreign translation adjustment. | ||||||||||
T. Earnings / (Loss) Per Common Share | ||||||||||
In accordance with FASB ASC 260, Earnings Per Share (“FASB ASC 260”), the Company presents both basic and diluted earnings / (loss) per common share in its consolidated financial statements and footnotes. Basic earnings / (loss) per common share (“Basic EPS”) excludes dilution and is computed by dividing net income or loss allocable to common stockholders or members by the weighted average number of common shares and restricted stock entitled to non-forfeitable dividends outstanding for the period. Diluted earnings per common share (“Diluted EPS”) reflects the potential dilution of common stock equivalents (such as restricted stock and restricted units entitled to forfeitable dividends, and in-the-money stock options), if they are not anti-dilutive. See note 24 for the computation of earnings/(loss) per common share. | ||||||||||
U. 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 our 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. We 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 our 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 that 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 may have to our 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 it may have to our consolidated financial statements. | ||||||||||
In August 2014, the FASB issued ASU No. 2014-13, Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity, which provides a measurement alternative for an entity that consolidates collateralized financing entities. A collateralized financing entity is a variable interest entity with nominal or no equity that holds financial assets and issues beneficial interests in those financial assets. The beneficial interests, which are financial liabilities of the collateralized financing entity, have contractual recourse only to the related assets of the collateralized financing entity. If elected, the alternative method results in the reporting entity measuring both the financial assets and financial liabilities of the collateralized financing entity using the more observable of the two fair value measurements, which effectively removes measurement differences between the financial assets and financial liabilities of the collateralized financing entity previously recorded as net income (loss) attributable to non-controlling and other beneficial interests and as an adjustment to appropriated retained earnings. The reporting entity continues to measure its own beneficial interests in the collateralized financing entity (other than those that represent compensation for services) at fair value. The ASU is effective for annual periods and interim periods with those annual periods beginning after December 15, 2015. A reporting entity may apply the ASU using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the annual period of adoption. A reporting entity may also apply the ASU retrospectively to all relevant prior periods beginning with the annual period in which ASU No. 2009-17, Consolidation (Topic 810): Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, was adopted. Early adoption is permitted. The Company is currently evaluating the potential impact on its consolidated financial statements and related disclosures. | ||||||||||
In November 2014, the FASB issued ASU No. 2014-17, Pushdown Accounting, which provides guidance on whether and at what threshold an acquired entity can apply pushdown accounting in its separate financial statements. The amendment gives the acquired entity the option of applying pushdown accounting in the reporting period in which the change-in-control event occurs. The decision to apply pushdown accounting is made for each individual change-in-control event. Once the election is made for a particular event, it is irrevocable. Furthermore, an entity may elect to apply push down accounting in a period subsequent to the change-in-control event but must treat such application as a change in accounting principle and apply the guidance of Accounting Changes and Error Corrections (Topic 250). The amendment is effective on November 18, 2014. This ASU will have no effect on the consolidated financial statements of the Company. The Company is currently evaluating the potential impact on any separately issued subsidiary statements. | ||||||||||
V. Business Concentration | ||||||||||
A substantial portion of the Company’s asset management revenues in a year may be derived from a small number of transactions. CDO asset management revenue was generated from a limited number of CDOs. In addition, the Company may earn a substantial portion of its income in the form of principal transactions. This is comprised of gains and losses on a small number of investments. | ||||||||||
The following table provides a summary for the relevant periods | ||||||||||
SUMMARY OF REVENUE CONCENTRATION | ||||||||||
(Dollars in Thousands) | ||||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
CDO Asset Management | ||||||||||
CDO asset management revenue and related service agreements | $ | 10,999 | $ | 13,664 | $ | 21,729 | ||||
Total asset management revenue | $ | 14,496 | $ | 19,239 | $ | 23,172 | ||||
Total revenues | $ | 55,750 | $ | 57,517 | $ | 95,240 | ||||
CDO asset management % as compared to total asset management fees | 76% | 71% | 94% | |||||||
CDO asset management % as compared to total revenues | 20% | 24% | 23% | |||||||
Number of CDOs generating management fees | 14 | 21 | 25 | |||||||
Principal Transactions | ||||||||||
Principal transactions and other income | $ | 7,979 | $ | -6,668 | $ | -2,439 | ||||
Principal transactions % as compared to total revenues | 14% | -12% | -3% | |||||||
Non CDO asset management revenue is also derived from a small number of engagements. Principal transaction income is generated from a limited number of investments. See note 8. | ||||||||||
The Company’s trading revenue is generated from transactions with a diverse set of institutional customers. The Company does not consider its trading revenue to be concentrated from a customer perspective. | ||||||||||
W. 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 9 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 9 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 9 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 9 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 December 31, 2014 and 2013, the fair value of the Company’s debt was estimated to be $39.3 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 9 and 10. 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 and Eurodollar futures. For derivative instruments, such as TBAs, the fair value is generally based on market price quotations from third party pricing services. See note 9 for disclosures concerning the categorization of the fair value measurements within the three level fair value hierarchy. | ||||||||||
Acquisitions_And_Private_Inves
Acquisitions And Private Investment In IFMI | 12 Months Ended | ||
Dec. 31, 2014 | |||
Acquisitions And Private Investment In IFMI [Abstract] | |||
Acquisitions And Private Investment In IFMI | 4. ACQUISITIONS AND PRIVATE INVESTMENT IN IFMI | ||
Acquisition of Star Asia Manager | |||
Effective March 1, 2013, Star Asia Manager repurchased (the “Star Asia Manager Repurchase Transaction”) its outstanding equity units held by Star Asia Mercury LLC (formerly, Mercury Partners, LLC) (“Mercury”). Star Asia Manager repurchased the units from Mercury for $425 and a note payable of $725. Under the note payable, interest accrued at a variable rate and there was no stated maturity date. See note 17. | |||
Prior to the Star Asia Manager Repurchase Transaction, each of the Company and Mercury owned 50% of the voting interests in Star Asia Manager. The Company accounted for its investment under the equity method of accounting. As a result of the Star Asia Manager Repurchase Transaction, the Company obtained 100% voting control of Star Asia Manager. Because the transaction resulted in the Company obtaining control, the Company accounted for the transaction as a business combination as called for under Accounting Standards Codification (“ASC”) 805, Business Combinations. Subsequent to the Star Asia Manager Repurchase Transaction, the Company included Star Asia Manager in its consolidated financial statements. | |||
Under ASC 805, if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report provisional amounts. For a period of up to one year subsequent to the acquisition date (the measurement period), the Company can adjust the provisional amounts as it obtains new information regarding the facts and circumstances that existed at the acquisition date. The following table summarizes the provisional amounts of the identified assets acquired and liabilities assumed at the acquisition date as of March 1, 2013 (dollars in thousands). | |||
Total Estimated Fair Value as of Acquisition Date | |||
Assets acquired: | |||
Cash and cash equivalents | $ | 1,104 | |
Due from related parties | 253 | ||
Other assets | 150 | ||
Liabilities assumed: | |||
Accounts payable and other liabilities | -55 | ||
Fair value of net assets acquired | 1,452 | ||
Purchase price (1) | 1,855 | ||
Intangible Asset (2) | $ | 403 | |
As provisional amounts, the amounts in the table above are subject to changes during the measurement period. See notes 15 and 28. | |||
(1)The purchase price represents the cash paid to Mercury of $425, the note payable to Mercury of $725, and the Company’s equity method investment immediately prior to the Star Asia Manager Repurchase Transaction. For purposes of the provisional amounts, the Company has assumed the carrying value of the Company’s equity method investment immediately prior to the Star Asia Manager Repurchase Transaction approximated fair value. As with all provisional purchase accounting amounts, this is subject to adjustment during the measurement period. | |||
(2)For purposes of the provisional purchase accounting, the Company determined that the excess of the purchase price over the net fair value of tangible assets acquired should entirely be allocated to an intangible asset representing the value of Star Asia Manager’s investment management contract with Star Asia. The Company treated the estimated value as an intangible asset with a finite life. The Company amortized the intangible asset using the straight-line method over the estimated economic life of the asset of 1.3 years. The intangible asset was allocated to the Asset Management business segment. See note 27. As with all provisional purchase accounting amounts, this was subject to adjustment during the measurement period. | |||
Star Asia Manager was sold as part of the sale of the Star Asia Group (see note 5) on February 20, 2014. On a pro forma basis, assuming the acquisition had occurred on January 1, 2013, the Company’s revenue would have been $55,626 and $58,097 and its net income / (loss) attributable to IFMI would have been $(2,572) and $(13,293) for the years ended December 31, 2014 and 2013, respectively. | |||
Investments by Mead Park Capital Partners LLC (“Mead Park Capital”) and EBC 2013 Family Trust (“EBC”) | |||
On May 9, 2013, the Company entered into definitive agreements (the “definitive agreements”) with Mead Park Capital and CBF (an entity owned solely 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 of the Company’s European business, and President of CCFL), pursuant to which each committed to make investments in the Company, totaling $13,746 in the aggregate. Mead Park Capital is a vehicle advised by Mead Park Advisors LLC (“Mead Park”) (a registered investment advisor) and is controlled by Jack J. DiMaio, Jr., Chief Executive Officer and founder of Mead Park and Chairman of the Company’s Board of Directors. The investment and related actions were unanimously approved by the Company’s Board of Directors (with Daniel G. Cohen abstaining) following the recommendation of the Board’s Special Committee of the Board of Directors, which was formed in connection with the transaction and was comprised of three of the Company’s independent directors. The Company obtained stockholder approval of the share issuances contemplated by the definitive agreements at the Company’s 2013 Annual Meeting of Stockholders on September 24, 2013. | |||
In connection with the closing of the transactions contemplated by the definitive agreements, on September 25, 2013, Mead Park Capital purchased 1,949,167 shares of the Company’s Common Stock and EBC, as assignee of CBF, purchased 800,000 shares of the Company’s Common Stock, in each case, at $2.00 per share for a combined investment of $5,498. Mead Park Capital also purchased convertible senior promissory notes in the aggregate principal amount of $5,848, which are convertible in accordance with the terms of the note into 1,949,167 shares at $3.00 per share. In addition, EBC, as assignee of CBF, purchased a convertible senior promissory note in the aggregate principal amount of $2,400, which is convertible in accordance with its terms into 800,000 shares at $3.00 per share. Daniel G. Cohen is a trustee of EBC. The convertible notes issued under the definitive agreements and described above (the “8.0% Convertible Notes”) have an 8.0% annual interest rate and will mature on September 25, 2018. See note 17 for a discussion about the 8.0% Convertible Notes. | |||
In connection with the transactions contemplated by the definitive agreements, on May 9, 2013, the Company’s Board of Directors adopted a Section 382 Rights Agreement (the “Rights Agreement”) in an effort to protect stockholder value by attempting to protect against a possible limitation on the Company’s ability to use its net operating loss and net capital loss carry forwards (the “deferred tax assets”) to reduce potential future federal income tax obligations. See note 19. | |||
In connection with the September 25, 2013 closing of the transactions contemplated by the definitive agreements, Mr. DiMaio and Christopher Ricciardi, a partner in Mead Park and the former President of the Company, were elected to the Company’s Board of Directors. Mr. DiMaio was also named Chairman of the Company’s Board of Directors and Mr. Cohen was named Vice Chairman of the Company’s Board of Directors. In addition, the Company’s Board of Directors was reduced from ten to eight members. | |||
In June 2013, the Company appointed Lester R. Brafman as President of the Company. In September 2013, the Company appointed Mr. Brafman as the Chief Executive Officer of the Company. In September 2013, Mr. Cohen transitioned his role as Chief Executive Officer and Chief Investment Officer of the Company, to serve as President and Chief Executive of the Company’s European business and President of CCFL. | |||
Sale_Of_Equity_Derivatives_Bro
Sale Of Equity Derivatives Brokerage Business, Management Contracts, And Investment Advisory Agreements | 12 Months Ended |
Dec. 31, 2014 | |
Sale Of Equity Derivatives Brokerage Business, Management Contracts, And Investment Advisory Agreements [Abstract] | |
Sale Of Equity Derivatives Brokerage Business, Management Contracts, And Investment Advisory Agreements | 5. SALE OF EQUITY DERIVATIVES BROKERAGE BUSINESS, MANAGEMENT CONTRACTS, AND INVESTMENT ADVISORY AGREEMENTS |
Sale of Equity Derivatives Brokerage Business | |
The Company entered into a purchase agreement, dated as of January 27, 2012, as amended on November 30, 2012 and December 31, 2012, whereby it agreed, subject to approval by FINRA and other customary closing conditions, to sell its equity derivatives brokerage business to an entity owned by two individuals that were employed by the Company until December 31, 2012 (the “FGC Buyer”). The FGC Buyer received certain intellectual property, books and records, and rights to the “FGC” name. The transaction was subject to FINRA approval, which was obtained in November 2012 and the equity derivatives brokerage business was transferred to the FGC Buyer on December 31, 2012, the closing date. All of the Company’s existing equity derivatives team were terminated and joined the FGC Buyer. | |
Pursuant to the terms of the purchase agreement, the FGC Buyer will pay to the Company a purchase price equal to 4.5% of all revenue earned by the FGC Buyer and the U.S. broker-dealer operations of certain of its affiliates between December 31, 2012 and December 31, 2015. In addition, in the event of a capital transaction, as defined in the purchase agreement, involving the FGC Buyer and certain of its affiliates, the Company will be entitled to receive ten percent (10%) of an amount equal to (a) all of proceeds received by the FGC Buyer and certain of its affiliates, less (b) certain expenses incurred in connection with such capital transaction. Revenue share income has been recorded as a component of principal transactions and other income. | |
The equity derivatives business generated $7,842 of revenue and $711 of operating income for the year ended December 31, 2012. | |
Sale of Star Asia Group | |
On February 20, 2014, the Company completed the sale of all of its ownership interests in 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. Contingent income is recorded as a component of principal transactions and other income. | |
Sale of European Operations | |
On August 19, 2014, the Operating LLC entered into a definitive agreement to sell its European operations to C&Co Europe Acquisition LLC, an entity controlled 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 of the Company’s European business, and the President of CCFL, for approximately $8,700. The purchase price for the Company’s European operations consists of an upfront payment at closing of $4,750 (subject to adjustment) and up to $3,950 to be paid over the four years following the closing of the sale. | |
Upon closing, the Operating LLC will also enter into a non-cancellable trust deed agreement with one of the entities included in the sale of the Company’s European operations (the manager of the Munda CLO I), which will result in the Operating LLC retaining the right to substantially all revenues from the management of Munda CLO I, as well as the proceeds from any potential future sale of the Munda CLO I management agreement. | |
Under the terms of the definitive agreement relating to the transaction, the Operating LLC will divest its European operations, including asset management and capital market activities through offices located in London, Paris, and Madrid, and approximately 30 employees will transition from the Operating LLC to C&Co Europe Acquisition LLC. Upon the closing of the transaction, Mr. Cohen will be deemed to have voluntarily terminated employment with the Company and its affiliates and will resign from all other positions and offices that he holds with the Company and its affiliates. Notwithstanding the foregoing, Mr. Cohen will receive no severance or other compensation related to such termination and resignation, and Mr. Cohen will remain Vice Chairman of the Company’s Board of Directors and IFMI’s largest shareholder (including voting only shares). | |
The Operating LLC’s European asset management business to be sold pursuant to the transaction includes management agreements for the Dekania Europe I, II, and III CDOs and the management agreements for several European managed accounts. As of December 31, 2014, these European assets under management totaled approximately $834,055, which represented 19% of the Company’s total AUM. Although the manager of Munda CLO I will be part of the transferred business, the Munda CLO I management agreement will be held in trust for the benefit of the Operating LLC. As of December 31, 2014, the Munda CLO I assets under management totaled approximately $723,381, which represented 17% of the Company’s total AUM. The Operating LLC’s European capital markets business consists of credit-related fixed income sales, trading, and financing as well as new issue placements in corporate and securitized products and advisory services, operating primarily through the Operating LLC’s subsidiary, CCFL. | |
The combined European business to be sold, excluding the revenues and expenses related to Munda CLO I, accounted for approximately $8,869 of revenue for the year ended December 30, 2014, and $1,858 of operating loss for the year ended December, 2014, and included approximately $2,072 of net assets as of December 31, 2014. | |
Under the terms of the purchase agreement, the Operating LLC had the right to initiate, solicit, facilitate, and encourage alternative acquisition proposals from third parties for a “go shop” period of up to 90 days from the signing of the purchase agreement. On October 29, 2014, the special committee of the board of directors elected to end the “go shop” period. The “go shop” period did not result in the Operating LLC receiving a superior proposal from a third party, and the Operating LLC intends to pursue the transaction with the entity controlled by Daniel G. Cohen, which is expected to close in the first half of 2015. The sale of the European business is subject to customary closing conditions and regulatory approval from the United Kingdom Financial Conduct Authority. | |
Receivables_From_And_Payables_
Receivables From And Payables To Brokers, Dealers, And Clearing Agencies | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Receivables from and Payables to Brokers, Dealers, and Clearing Agencies [Abstract] | |||||||
Receivables from and Payables to Brokers, Dealers, and Clearing Agencies | 6. RECEIVABLES FROM AND PAYABLES TO BROKERS, DEALERS AND CLEARING AGENCIES | ||||||
Amounts receivable from brokers, dealers, and clearing agencies consisted of the following at December 31, 2014 and 2013, respectively. | |||||||
RECEIVABLES FROM BROKERS, DEALERS, AND CLEARING AGENCIES | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Deposits with clearing organizations | $ | 1,296 | $ | 1,428 | |||
Receivable from clearing organizations | 340 | 418 | |||||
Receivables from brokers, dealers, and clearing agencies | $ | 1,636 | $ | 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 December 31, 2014 and 2013, respectively. | |||||||
PAYABLES TO BROKERS, DEALERS, AND CLEARING AGENCIES | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Unsettled regular way trades, net | $ | 4,971 | $ | 5,600 | |||
Margin payable | 43,042 | 25,111 | |||||
Payables to brokers, dealers, and clearing agencies | $ | 48,013 | $ | 30,711 | |||
Securities transactions that settle in the regular way 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 $447, $627and $1,456 for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||
Other_Receivables
Other Receivables | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Receivables [Abstract] | |||||||
Other Receivables | 7. OTHER RECEIVABLES | ||||||
Receivables are comprised of the following. | |||||||
OTHER RECEIVABLES | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Asset management fees | $ | 3,165 | $ | 3,886 | |||
New issue and advisory fees | - | 150 | |||||
Accrued interest and dividends receivable | 931 | 695 | |||||
Notes receivable | 2,463 | 1,849 | |||||
Revenue share receivable | 2,217 | 628 | |||||
Other | 622 | 554 | |||||
Other receivables | $ | 9,398 | $ | 7,762 | |||
Asset management and new issue and advisory receivables are of a routine and short-term nature. These amounts are generally accrued monthly and paid on a monthly or quarterly basis. See note 3-L regarding asset management fees accrued. Accrued interest and dividend receivable represents interest and dividends accrued on the Company’s investment securities. Interest payable on securities sold but not yet purchased is included as a component of accounts payable and other liabilities. Revenue share receivable represents the amount due to the Company for the Company’s share of revenue generated from various entities in which the Company receives a share of the entity’s revenue. Notes receivable are from unrelated third parties. Other receivables represent other miscellaneous receivables that are of a short-term nature. | |||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Financial Instruments [Abstract] | |||||||||||
Financial Instruments | |||||||||||
8. 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) | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
U.S. government agency MBS and CMOs (1) | $ | 11,647 | $ | 13,520 | |||||||
U.S. government agency debt securities | 25,785 | 32,213 | |||||||||
RMBS | 358 | 1,584 | |||||||||
U.S. Treasury securities | 1,131 | 764 | |||||||||
CLOs | 952 | 186 | |||||||||
Other ABS | 112 | 268 | |||||||||
SBA loans | 29,681 | 27,719 | |||||||||
Corporate bonds and redeemable preferred stock | 22,142 | 23,562 | |||||||||
Foreign government bonds | - | 88 | |||||||||
Municipal bonds | 33,664 | 16,024 | |||||||||
Exchange traded funds | - | 6 | |||||||||
Certificates of deposit | 985 | 1,648 | |||||||||
Equity securities | 291 | 36 | |||||||||
Investments-trading | $ | 126,748 | $ | 117,618 | |||||||
(1)Includes TBAs. See notes 3-G and 10. | |||||||||||
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) | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
U.S. government agency MBS (1) | $ | 1,666 | $ | 121 | |||||||
U.S. Treasury securities | 15,644 | 38,066 | |||||||||
SBA loans | 4 | - | |||||||||
Corporate bonds and redeemable preferred stock | 31,406 | 10,679 | |||||||||
Foreign government bonds | - | 26 | |||||||||
Municipal bonds | 20 | 88 | |||||||||
Certificates of deposit | - | 524 | |||||||||
Trading securities sold, not yet purchased | $ | 48,740 | $ | 49,504 | |||||||
(1)Includes TBAs. See notes 3-G and 10. | |||||||||||
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 gains (losses) in the amount of $ (693) and $1,857 for years ended December 31, 2014 and 2013, respectively, in net trading revenue in the Company’s consolidated statements of operations. | |||||||||||
Other Investments, at fair value | |||||||||||
OTHER INVESTMENTS, AT FAIR VALUE | |||||||||||
(Dollars in Thousands) | |||||||||||
31-Dec-14 | |||||||||||
Cost | Carrying Value | Unrealized Gain(Loss) | |||||||||
CLOs | $ | 23,139 | $ | 21,518 | $ | -1,621 | |||||
CDOs | 193 | 11 | -182 | ||||||||
Equity Securities: | |||||||||||
EuroDekania | 6,503 | 3,717 | -2,786 | ||||||||
Tiptree | 5,455 | 2,472 | -2,983 | ||||||||
Other securities | 176 | 33 | -143 | ||||||||
Total equity securities | 12,134 | 6,222 | -5,912 | ||||||||
Residential loans | 118 | 565 | 447 | ||||||||
Foreign currency forward contracts | - | 83 | 83 | ||||||||
Other investments, at fair value | $ | 35,584 | $ | 28,399 | $ | -7,185 | |||||
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 sold its ownership interests in the Star Asia Group. See note 5. | |||||||||||
Fair_Value_Disclosures
Fair Value Disclosures | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||
Fair Value Disclosures | 9. 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. 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 losses of $ (531), $(11,399), $ (6,284) related to changes in fair value of investments that are included as a component of other investments, at fair value during the year ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||
In accordance with 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 was a transfer of $2,705 into level 1 from level 2 in the valuation hierarchy for 2014 related to the Company’s equity investment in Tiptree. There were no transfers between level 1 and level 2 of the fair value hierarchy during 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 tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. | ||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS ON A RECURRING BASIS | ||||||||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||
(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 | $ | 11,647 | $ | - | $ | 11,647 | $ | - | ||||||||||||||||||||
U.S. government agency debt securities | 25,785 | - | 25,785 | - | ||||||||||||||||||||||||
RMBS | 358 | - | 358 | - | ||||||||||||||||||||||||
U.S. Treasury securities | 1,131 | 1,131 | - | - | ||||||||||||||||||||||||
CLOs | 952 | - | 952 | - | ||||||||||||||||||||||||
Other ABS | 112 | - | 112 | - | ||||||||||||||||||||||||
SBA loans | 29,681 | - | 29,681 | - | ||||||||||||||||||||||||
Corporate bonds and redeemable preferred stock | 22,142 | - | 22,142 | - | ||||||||||||||||||||||||
Municipal bonds | 33,664 | - | 33,664 | - | ||||||||||||||||||||||||
Certificates of deposit | 985 | - | 985 | - | ||||||||||||||||||||||||
Equity securities | 291 | 233 | 58 | - | ||||||||||||||||||||||||
Total investments - trading | $ | 126,748 | $ | 1,364 | $ | 125,384 | $ | - | ||||||||||||||||||||
Other investments, at fair value | ||||||||||||||||||||||||||||
EuroDekania | $ | 3,717 | $ | - | $ | - | $ | 3,717 | ||||||||||||||||||||
Tiptree | 2,472 | 2,472 | - | - | ||||||||||||||||||||||||
Other equity securities | 33 | 23 | 10 | - | ||||||||||||||||||||||||
CLOs | 21,518 | - | - | 21,518 | ||||||||||||||||||||||||
CDOs | 11 | - | - | 11 | ||||||||||||||||||||||||
Residential loans | 565 | - | 565 | - | ||||||||||||||||||||||||
Foreign currency forward contracts | 83 | 83 | - | - | ||||||||||||||||||||||||
Total other investments, at fair value | $ | 28,399 | $ | 2,578 | $ | 575 | $ | 25,246 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Trading securities sold, not yet purchased: | ||||||||||||||||||||||||||||
U.S. government agency MBS | $ | 1,666 | $ | - | $ | 1,666 | $ | - | ||||||||||||||||||||
U.S. Treasury securities | 15,644 | 15,644 | - | - | ||||||||||||||||||||||||
SBA loans | 4 | - | 4 | - | ||||||||||||||||||||||||
Corporate bonds and redeemable preferred stock | 31,406 | - | 31,406 | - | ||||||||||||||||||||||||
Municipal bonds | 20 | - | 20 | - | ||||||||||||||||||||||||
Total trading securities sold, not yet purchased | $ | 48,740 | $ | 15,644 | $ | 33,096 | $ | - | ||||||||||||||||||||
FAIR VALUE MEASUREMENTS ON A RECURRING BASIS | ||||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
(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 | $ | 4,192 | $ | - | $ | - | $ | 4,192 | ||||||||||||||||||||
Star Asia | 17,104 | - | - | 17,104 | ||||||||||||||||||||||||
Tiptree | 2,282 | - | 2,282 | - | ||||||||||||||||||||||||
Star Asia Special Situations Fund | 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 | $ | - | ||||||||||||||||||||
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 2 or level 3 of the valuation hierarchy depending on if the model inputs are observable or not. | ||||||||||||||||||||||||||||
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 5, 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 NAV 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 could be exchanged into shares of Tiptree Financial, Inc. based on a stated exchange ratio (which was generally fixed, but could be adjusted for certain events, such as stock dividends or stock splits). Tiptree Financial, Inc. was publicly traded over-the-counter at the time of the reorganization. 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. During the third quarter of 2014, the Company exchanged the units it held in Tiptree Financial Partners, L.P. into an equivalent number of shares of Tiptree Financial, Inc. Tiptree Financial, Inc. common stock trades on a liquid exchange, and therefore the closing price of the security used to determine the fair value was transferred from a level 2 to a level 1 value in the valuation hierarchy. | ||||||||||||||||||||||||||||
In the case of Star Asia, prior to December 31, 2013, the Company utilized a valuation model to determine fair value, which used a market approach and generally classified 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 carried 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 5, 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 or market indications to value the residential loans. These are considered level 2 in the hierarchy. | ||||||||||||||||||||||||||||
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 10. | ||||||||||||||||||||||||||||
Other Extended Settlement Trades | ||||||||||||||||||||||||||||
When the Company buys or sells a financial instrument that will not settle in the regular time frame, the Company will account for that purchase and sale on the settlement date rather than the trade date. In those cases, the Company accounts for the transaction between trade date and settlement date as a derivative (as either a purchase commitment or sale commitment). The Company will record an unrealized gain or unrealized loss on the derivative for the difference between the fair value of the underlying financial instrument as of the reporting date and the agreed upon transaction price. The Company will determine the fair value of the financial instrument using the methodologies described above. | ||||||||||||||||||||||||||||
Level 3 Financial Assets and Liabilities | ||||||||||||||||||||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||
The following tables present 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 | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
31-Dec-13 | Net trading | Gains and losses | Transfers out of Level 3 | Accretion of income | Purchases | Sales and returns of capital | 31-Dec-14 | Change in unrealized gains /(losses) for the period included in earnings (1) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Investments-trading | ||||||||||||||||||||||||||||
CLOs | $ | 186 | $ | -3 | $ | - | $ | - | $ | - | $ | - | $ | -183 | $ | - | $ | - | ||||||||||
Total investments-trading | $ | 186 | $ | -3 | $ | - | $ | - | $ | - | $ | - | $ | -183 | $ | - | $ | - | ||||||||||
Other investments, at fair value: | ||||||||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||
EuroDekania | $ | 4,192 | $ | - | $ | 1,800 | $ | - | $ | - | $ | - | $ | -2,275 | $ | 3,717 | $ | 1,800 | ||||||||||
Star Asia | 17,104 | - | 78 | - | - | - | -17,182 | - | - | |||||||||||||||||||
Star Asia Special Situations Fund | 2,747 | - | - | - | - | - | -2,747 | - | - | |||||||||||||||||||
Total equity securities | 24,043 | - | 1,878 | - | - | - | -22,204 | 3,717 | 1,800 | |||||||||||||||||||
CLOs | - | - | -1,699 | - | 1,577 | 25,288 | -3,648 | 21,518 | -1,622 | |||||||||||||||||||
CDOs | 35 | - | -24 | - | - | - | - | 11 | - | |||||||||||||||||||
Total other investments, fair value | $ | 24,078 | $ | - | $ | 155 | $ | - | $ | 1,577 | $ | 25,288 | $ | -25,852 | $ | 25,246 | $ | 178 | ||||||||||
(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. | ||||||||||||||||||||||||||||
LEVEL 3 INPUTS | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
31-Dec-12 | Net trading | Principal transactions and other income | Transfers out of Level 3 | Accretion of income | Purchases | Sales and returns of capital | 31-Dec-13 | Change in unrealized gains /(losses) for the period included in earnings (1) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Investments-trading | ||||||||||||||||||||||||||||
CLOs | $ | 295 | $ | 82 | $ | - | $ | - | $ | - | $ | - | $ | -191 | $ | 186 | $ | -111 | ||||||||||
SBA loans | - | 213 | - | - | - | 37 | -250 | - | - | |||||||||||||||||||
Total investments-trading | $ | 295 | $ | 295 | $ | - | $ | - | $ | - | $ | 37 | $ | -441 | $ | 186 | $ | -111 | ||||||||||
Other investments, at fair value: | ||||||||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||
EuroDekania | $ | 2,054 | $ | - | $ | 1,167 | $ | - | $ | - | $ | 971 | $ | - | $ | 4,192 | $ | 1,167 | ||||||||||
Star Asia | 30,169 | - | -13,065 | - | - | - | - | 17,104 | -13,065 | |||||||||||||||||||
Tiptree | 2,834 | - | - | -2,834 | - | - | - | - | - | |||||||||||||||||||
Star Asia Special Situations Fund | 2,503 | - | 152 | - | - | 302 | -210 | 2,747 | 152 | |||||||||||||||||||
Total equity securities | 37,560 | - | -11,746 | -2,834 | - | 1,273 | -210 | 24,043 | -11,746 | |||||||||||||||||||
CDOs | 77 | - | -42 | - | - | - | 35 | -42 | ||||||||||||||||||||
Total other investments, fair value | $ | 37,637 | $ | - | $ | -11,788 | $ | -2,834 | $ | - | $ | 1,273 | $ | -210 | $ | 24,078 | $ | -11,788 | ||||||||||
(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. | ||||||||||||||||||||||||||||
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 year ended December 31, 2014, there were no transfers into or out of level 3 of the valuation hierarchy. | ||||||||||||||||||||||||||||
Other investments, at fair value: During the year ended December 31, 2014, there were no transfers into or out of level 3 of the valuation hierarchy. During the year ended December 31, 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 December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
Significant | Range of | |||||||||||||||||||||||||||
Fair Value | Valuation | Unobservable | Weighted | Significant | ||||||||||||||||||||||||
31-Dec-14 | Technique | Inputs | Average | Inputs | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Other investments, at fair value | ||||||||||||||||||||||||||||
CLOs | $ | 21,518 | Discounted Cash Flow Model | Yield | 16.2% | 12.4% - 18.3% | ||||||||||||||||||||||
Duration (years) | 4.1 | 2.6 - 4.5 | ||||||||||||||||||||||||||
Default rate | 1.0% | 1.00% | ||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||
•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 – 2013. | ||||||||||||||||||||||||||||
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 5). As the sale involved multiple investments, the key assumption in the valuation was the relative fair value of Star Asia Special Situations Fund and Star Asia as compared to the total fair value of all the 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 December 31, 2014 and 2013 | ||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS OF INVESTMENTS IN CERTAIN ENTITIES | ||||||||||||||||||||||||||||
THAT CALCULATE NET ASSET VALUE PER SHARE (OR ITS EQUIVALENT) | ||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
(dollars in thousands) | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | |||||||||||||||||||||||||
Other investments, at fair value | ||||||||||||||||||||||||||||
EuroDekania (a) | $ | 3,717 | N/A | N/A | N/A | |||||||||||||||||||||||
$ | 3,717 | |||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
(dollars in thousands) | 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 | $ | 321 | 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. As described in more detail in note 5, the Company sold its investment in Star Asia in February 2014 along with the other Star Asia Group investments. According to ASC 820, when a sale is considered probable as 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 as of December 31, 2013, by utilizing a valuation model that took into account the terms and conditions of the sale in February 2014. | ||||||||||||||||||||||||||||
(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. As described in more detail in note 5, the Company sold its investment in Star Asia Special Situations Fund in February 2014 along with the other Star Asia Group investments. According to ASC 820, when a sale is considered probable as 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 | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Derivative Financial Instruments [Abstract] | |||||||||||
Derivative Financial Instruments | 10. DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||
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 December 31, 2014, the Company had outstanding foreign currency forward contracts with a notional amount of 3 million Euros. As December 31, 2013, the Company had outstanding foreign currency forward contracts with a notional amount of 1.25 billion Japanese Yen. | |||||||||||
EuroDollar Futures | |||||||||||
The Company invests in floating rate investments that expose it to fluctuations in interest and, therefore, the Company may, from time to time, hedge such exposure using EuroDollar futures. The Company carries the EuroDollar future contracts 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. As of December 31, 2014 and 2013, the Company had no outstanding EuroDollar future contracts. | |||||||||||
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 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 these clients. 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 December 31, 2014, the Company had open TBA sale agreements in the notional amount of $318,463 and open TBA purchase agreements in the notional amount of $318,463. At December 31, 2013, the Company had open TBA sale agreements in the notional amount of $294,000 and open TBA purchase agreements in the notional amount of $284,808. | |||||||||||
Other Extended Settlement Trades | |||||||||||
When the Company buys or sells a financial instrument that will not settle in the regular time frame, the Company will account for that purchase and sale on the settlement date rather than the trade date. In those cases, the Company accounts for the transaction between trade date and settlement date as a derivative as either a forward purchase commitment or a forward sale commitment. The Company will record an unrealized gain or unrealized loss on the derivative for the difference between the fair value of the underlying financial instrument as of the reporting date and the agreed upon transaction price. At December 31, 2014, the Company had open forward purchase commitments of $3,517 and open forward sale commitments of $0. At December 31, 2013, the Company had no open forward purchase or sale commitments. 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 December 31, 2014 and 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 | As of December 31, 2014 | As of December 31, 2013 | ||||||||
TBAs | Investments-trading | $ | 1,928 | $ | 188 | ||||||
Other extended settlement trades | Investments-trading | 2 | - | ||||||||
Foreign currency forward contracts | Other investments, at fair value | 83 | 190 | ||||||||
TBAs | Trading securities sold, not yet purchased | -1,666 | -66 | ||||||||
Other extended settlement trades | Trading securities sold, not yet purchased | -4 | - | ||||||||
$ | 343 | $ | 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 | For the Year Ended December 31, 2014 | For the Year Ended December 31, 2013 | For the Year Ended December 31, 2012 | |||||||
Foreign currency forward contracts | Revenues-principal transactions and other income | $ | -167 | $ | 260 | $ | 40 | ||||
EuroDollar futures contracts | Revenues-net trading | - | - | -30 | |||||||
Other extended settlement trades | Revenues-net trading | -2 | - | - | |||||||
TBAs | Revenues-net trading | 2,180 | 3,153 | 1,185 | |||||||
$ | 2,011 | $ | 3,413 | $ | 1,195 | ||||||
Collateralized_Securities_Tran
Collateralized Securities Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Brokers and Dealers [Abstract] | |
Collateralized Securities Transactions | 11. COLLATERALIZED SECURITIES TRANSACTIONS |
Reverse repurchase agreements and 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. See note 3-L. | |
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 December 31, 2014 and 2013, the Company held reverse repurchase agreements of $101,675 and $29,395, respectively, and the fair value of securities received as collateral under reverse repurchase agreements was $107,931 and $29,575, respectively. | |
At December 31, 2014 and 2013, the Company had repurchase agreements of $101,856 and $28,748, respectively, and the fair value of securities pledged as collateral under repurchase agreements was $108,065 and $28,591, respectively. These amounts include collateral for reverse repurchase agreements that were re-pledged as collateral for repurchase agreements. | |
At December 31, 2014 and 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 | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Goodwill Disclosure [Abstract] | |||||||
Goodwill | 12. GOODWILL | ||||||
The following table presents goodwill. | |||||||
GOODWILL | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Cira SCM | $ | - | $ | 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. | |||||||
Cira SCM Goodwill | |||||||
The goodwill attributable to Cira SCM related to the Company’s acquisition of the 10% of Cira SCM that the Company did not already own in exchange for 189,901 membership units of the Company, from a non-controlling interest partner in July 2007. | |||||||
The annual testing date for the Cira SCM Goodwill is July 1. The Company determined the goodwill was not impaired as of July 1, 2013 and 2012. On the annual test for July 1, 2014, the Company determined the Cira SCM goodwill was impaired and recorded an impairment charge of $3,121. In addition to the annual tests, during the period from January 1, 2012 to December 31, 2014, the Company identified a triggering event at which time it tested the goodwill balance. During the fourth quarter of 2012, the Company received an incentive fee from the Deep Value GP II related to the liquidation of a third Deep Value fund that was a master fund with an offshore feeder fund only. See notes 3-F and 15. The Company deemed this event to be a triggering event; however, the Company concluded that the remaining goodwill was not impaired. | |||||||
AFN Goodwill | |||||||
The annual impairment testing date for the AFN Goodwill is October 1. The first testing date following the Merger was October 1, 2010. The Company determined the goodwill was not impaired as of October 1, 2014, 2013, and 2012. | |||||||
JVB Goodwill | |||||||
The annual impairment testing date for the JVB Goodwill is January 1. The first testing date after the acquisition was January 1, 2012. The Company determined the goodwill was not impaired as of January 1, 2015, 2014, and 2013. | |||||||
In January 2014, the Company merged JVB and CCPR to attain cost savings and eliminate duplicative business lines. Effective December 31, 2013, the Company combined the PrinceRidge and JVB reporting units in anticipation of the merger of these two entities, which was effective in January 2014. The January 1, 2014 goodwill test included the combined goodwill of both entities. The goodwill amounts are combined in the table above effective December 31, 2013. All future tests will be done based on JVB’s annual impairment testing and will include the historical JVB goodwill and the historical PrinceRidge goodwill. | |||||||
Other_Assets_and_Accounts_Paya
Other Assets and Accounts Payable and Other Liabilities | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Assets and Accounts Payable and Other Liabilities [Abstract] | |||||||
Other Assets And Accounts Payable And Other Liabilities | 13. OTHER ASSETS AND ACCOUNTS PAYABLE AND OTHER LIABILITIES | ||||||
Other assets included: | |||||||
OTHER ASSETS | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Deferred costs | $ | 1,665 | $ | 644 | |||
Prepaid expenses | 1,835 | 2,226 | |||||
Prepaid income taxes | - | 146 | |||||
Security deposits | 2,417 | 2,492 | |||||
Miscellaneous other assets | 190 | 146 | |||||
Cost method investment | 11 | 235 | |||||
Furniture, equipment, and leasehold improvements, net | 1,150 | 2,054 | |||||
Intangible assets | 166 | 483 | |||||
Equity method affiliates | - | -31 | |||||
Other assets | $ | 7,434 | $ | 8,395 | |||
Accounts payable and other liabilities included: | |||||||
ACCOUNTS PAYABLE AND OTHER LIABILITIES | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Accounts payable | $ | 512 | $ | 738 | |||
Rent payable | 626 | 1,058 | |||||
Accrued interest payable | 318 | 376 | |||||
Accrued interest on securities sold, not yet purchased | 626 | 255 | |||||
Payroll taxes payable | 754 | 1,055 | |||||
Accrued income taxes | 63 | - | |||||
Other general accrued expenses | 2,204 | 4,994 | |||||
Accounts payable and other liabilities | $ | 5,103 | $ | 8,476 | |||
Furniture_Equipment_And_Leaseh
Furniture, Equipment, And Leasehold Improvements, Net | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Furniture, Equipment, And Leasehold Improvements, Net | 14. FURNITURE, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET | |||||||||
Furniture, equipment, and leasehold improvements, net, which are included as a component of other assets on the consolidated balance sheets, are as follows. | ||||||||||
FURNITURE, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET | ||||||||||
(Dollars in Thousands) | ||||||||||
Estimated Useful Lives | 31-Dec-14 | 31-Dec-13 | ||||||||
Furniture and equipment | 3 to 5 Years | $ | 2,816 | $ | 3,169 | |||||
Leasehold improvements | 5 to 10 Years | 4,353 | 5,122 | |||||||
7,169 | 8,291 | |||||||||
Accumulated depreciation | -6,019 | -6,237 | ||||||||
Furniture, equipment, and leasehold improvements, net | $ | 1,150 | $ | 2,054 | ||||||
For the year ended December 31, 2014, the Company wrote off fully depreciated furniture and equipment and leasehold improvements aggregating $895. | ||||||||||
The Company recognized depreciation and amortization expense of $1,103, $1,405, and $1,305 for the years ended December 31, 2014, 2013, and 2012, respectively, as a component of depreciation and amortization on the consolidated statements of operations. For the years ended December 31, 2014, 2013, and 2012, $1,078, $1,154, and $1,305, respectively, represented depreciation of furniture, equipment, and leasehold improvements and the remainder represented amortization of certain intangible assets. | ||||||||||
Investments_In_Equity_Method_A
Investments In Equity Method Affiliates | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Investments in Equity Method Affiliates [Abstract] | ||||||||||||||||||||||||||||||
Investments In Equity Method Affiliates | 15. INVESTMENTS IN EQUITY METHOD AFFILIATES | |||||||||||||||||||||||||||||
The Company had several investments that were 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. See note 3-F. Those affiliates 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. | ||||||||||||||||||||||||||||||
Effective in March 2013, the Company acquired 100% control of Star Asia Manager as a result of the Star Asia Manager Repurchase Transaction. See note 4. Prior to March 1, 2013, the Company accounted for its investment in Star Asia Manager under the equity method. Following March 1, 2013 until its sale in February 2014, the Company had included Star Asia Manager in its consolidated financial statements. | ||||||||||||||||||||||||||||||
As of December 31, 2014, the Company had no equity method investees (excluding equity method affiliates for which it had adopted the fair value option). See note 5. | ||||||||||||||||||||||||||||||
The following table summarizes the activity and the earnings of the Company’s equity method affiliates and includes the activity for Star Asia Manager during the period that the Company accounted for its investment in Star Asia Manager under the equity method. | ||||||||||||||||||||||||||||||
INVESTMENTS IN EQUITY METHOD AFFILIATES | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||
Star | Deep | Deep | Star | Star | Star Asia | Star | ||||||||||||||||||||||||
Asia | Value | Value | Asia | Asia | Capital | Asia | SAA | |||||||||||||||||||||||
Manager (3) | GP | GP II | SPV (3) | Opportunity (3) | Management (3) | Opportunity II (3) | Manager (3) | Other | Total | |||||||||||||||||||||
31-Dec-11 | $ | 1,046 | $ | 21 | $ | 33 | $ | 466 | $ | 4,460 | $ | 50 | $ | - | $ | - | $ | - | $ | 6,076 | ||||||||||
Investment / advances | - | - | - | 10 | - | 6 | 4,700 | - | - | 4,716 | ||||||||||||||||||||
Distributions / repayments | -1,600 | - | -1,720 | -662 | -4,982 | -652 | -2,477 | - | - | -12,093 | ||||||||||||||||||||
Reorganization (1) | - | - | - | - | - | - | -1,841 | - | - | -1,841 | ||||||||||||||||||||
Earnings / (loss) realized | 1,101 | -14 | 1,726 | 1,581 | 544 | 504 | -382 | -8 | - | 5,052 | ||||||||||||||||||||
31-Dec-12 | 547 | 7 | 39 | 1,395 | 22 | -92 | - | -8 | - | 1,910 | ||||||||||||||||||||
Investment / advances | - | - | - | - | - | - | - | 10 | 20 | 30 | ||||||||||||||||||||
Distributions / repayments | - | -7 | -26 | -2,682 | - | -134 | - | -245 | - | -3,094 | ||||||||||||||||||||
Acquisition (2) | -705 | - | - | - | - | - | - | - | - | -705 | ||||||||||||||||||||
Earnings / (loss) realized | 158 | - | -13 | 1,287 | -5 | 145 | - | 255 | 1 | 1,828 | ||||||||||||||||||||
31-Dec-13 | - | - | - | - | 17 | -81 | - | 12 | 21 | -31 | ||||||||||||||||||||
Investments / advances | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Distributions / repayments | - | - | - | - | -17 | -15 | - | -25 | -10 | -67 | ||||||||||||||||||||
Sale (3) | - | - | - | - | - | 83 | - | -1 | -11 | 71 | ||||||||||||||||||||
Earnings / (loss) realized | - | - | - | - | - | 13 | - | 14 | - | 27 | ||||||||||||||||||||
31-Dec-14 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
(1)On December 20, 2012, Star Asia Opportunity II completed a reorganization whereby its assets were contributed into a subsidiary of the Star Asia Special Situations Fund. The net effect of the reorganization to the Company was that the Company exchanged its ownership interest in Star Asia Opportunity II for cash and an interest in the Star Asia Special Situations Fund. The Star Asia Special Situations Fund was carried at fair value and included as a component of other investments, at fair value. | ||||||||||||||||||||||||||||||
The cash received by the Company in the reorganization is included as distributions / repayments above. The remaining carrying value of the Company’s equity method investment in Star Asia Opportunity II was $1,841 after taking into account the cash distribution from the reorganization. This amount was reclassified from investments in equity method affiliates to other investments, at fair value. It is shown as reorganization in the table above and was treated as the cost basis of the Company’s investment in the Star Asia Special Situations Fund. Any difference between the cost basis assigned and the fair value of the Company’s investment in the Star Asia Special Situations Fund was included as a component of principal transactions, and other income. See notes 8, 9, 28, and 29. | ||||||||||||||||||||||||||||||
(2)See note 4. | ||||||||||||||||||||||||||||||
(3)See note 5. | ||||||||||||||||||||||||||||||
The following table summarizes the combined financial information for all equity method investees, including equity method investees for which the fair value option was elected. As of December 31, 2013, this represented all of the equity method affiliates noted in the table above for which the Company had an investment balance as of December 31, 2013 plus Star Asia Finance (which was an equity method affiliate for which the fair value option was elected). This aggregated summarized financial data does not represent the Company’s proportionate share of equity method investees’ assets or earnings. | ||||||||||||||||||||||||||||||
SUMMARY DATA OF EQUITY METHOD INVESTEES | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||
Total Assets | $ | - | $ | 370,388 | ||||||||||||||||||||||||||
Liabilities | $ | - | $ | 144,578 | ||||||||||||||||||||||||||
Equity attributable to the investees | - | 225,810 | ||||||||||||||||||||||||||||
Non-controlling interest | - | - | ||||||||||||||||||||||||||||
Total Liabilities & Equity | $ | - | $ | 370,388 | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Net income / (loss) | $ | - | $ | 28,885 | $ | 2,248 | ||||||||||||||||||||||||
Net income / (loss) attributable to the investees | $ | - | $ | 29,501 | $ | 2,667 | ||||||||||||||||||||||||
See note 29 for information regarding transactions with the Company’s equity method investees. | ||||||||||||||||||||||||||||||
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Variable Interest Entity Disclosure [Abstract] | ||||||||||
Variable Interest Entities | 16. VARIABLE INTEREST ENTITIES | |||||||||
The Company’s policy on accounting for VIEs is discussed in note 3-J. | ||||||||||
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 was involved with as of December 31, 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 December 31, 2014, the Company had variable interests in various securitizations but determined that it was not the primary beneficiary and, therefore, was 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 has not provided financial support to these VIEs during the years ended December 31, 2014, 2013, and 2012 and had no liabilities, contingent liabilities, or guarantees (implicit or explicit) related to these VIEs at December 31, 2014 and 2013. | ||||||||||
The following table 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 trust VIEs that hold the Company’s junior subordinated notes (see note 17) 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 holds variable interests at December 31, 2014 and 2013. | ||||||||||
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES | ||||||||||
(Dollars in Thousands) | ||||||||||
31-Dec-14 | ||||||||||
Other Receivable | Other Investments, at fair value | Maximum Exposure to loss in non-consolidated VIEs | ||||||||
Managed VIEs | $ | 1,829 | $ | - | $ | 1,829 | ||||
Third party managed VIEs | 73 | 21,528 | 21,601 | |||||||
Total | $ | 1,902 | $ | 21,528 | $ | 23,430 | ||||
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 | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||
Debt | 17. DEBT | ||||||||||||||||||
The Company had the following debt outstanding. | |||||||||||||||||||
DETAIL OF DEBT | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Description | Current Outstanding Par | 31-Dec-14 | 31-Dec-13 | Interest Rate Terms | Interest (3) | Maturity | |||||||||||||
Contingent convertible senior notes: | |||||||||||||||||||
10.50% contingent convertible senior notes (the "New Notes") | $ | - | $ | - | $ | 3,115 | 10.50% | 10.50 | % | May-14 | |||||||||
8.00% contingent convertible senior notes (the "8.0% Convertible Notes") | 8,248 | 8,248 | 8,248 | 8.00% | 8.00 | % | September 2018 (1) | ||||||||||||
$ | 8,248 | $ | 8,248 | 11,363 | |||||||||||||||
Junior subordinated notes: | |||||||||||||||||||
Alesco Capital Trust I | $ | 28,125 | -2 | 11,499 | 10,697 | 4.26% | 4.26 | % | Jul-37 | ||||||||||
Sunset Financial Statutory Trust I | 20,000 | -2 | 8,192 | 7,614 | 4.41% | 4.41 | % | Mar-35 | |||||||||||
$ | 48,125 | 19,691 | 18,311 | ||||||||||||||||
Total | $ | 27,939 | $ | 29,674 | |||||||||||||||
(1)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. | |||||||||||||||||||
(2)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. | |||||||||||||||||||
(3)Represents the interest rate as of the last day of the reporting period. | |||||||||||||||||||
Contingent Convertible Senior Notes | |||||||||||||||||||
10.50% Contingent Convertible Senior Notes due 2027 | |||||||||||||||||||
The Company issued $8,121 aggregate principal amount of New Notes at par during the second half of 2011 in connection with an Exchange Offer consummated for $7,621 aggregate principal amount of the Old Notes and a privately negotiated exchange of $500 in aggregate principal amount of the Old Notes. The New Notes were paid off in full in May 2014. | |||||||||||||||||||
8.0% Convertible Notes | |||||||||||||||||||
In connection with the investments by Mead Park Capital and EBC, as assignee of CBF, in September 2013, the Company issued $8,248 in aggregate principal amount of convertible senior promissory notes. The 8.0% Convertible Notes accrue 8% interest per year, payable quarterly. The 8.0% Convertible Notes mature on September 25, 2018. As required under ASC 470, the Company accounted for the 8.0% Convertible Notes as conventional convertible debt and did not allocate any amount of the proceeds to the embedded equity option. | |||||||||||||||||||
The holders of the notes may convert all or any part of the outstanding principal amount of the 8.0% Convertible Notes at any time into shares of the Company’s Common Stock at $3.00 per share conversion price, subject to customary anti-dilution adjustments. Accordingly, based on the current principal balance, the notes will be convertible into up to an aggregate of 2,749,167 shares of Common Stock. However, the 8.0% Convertible Notes have certain provisions that allow for the deferral of interest payments: (i) if dividends of less than $0.02 per share are paid on the Company’s Common Stock in the quarter prior to any interest payment date, then the Company may pay one-half of the interest in cash on such date, and the remaining one-half of the interest otherwise payable will be added to the principal amount of the convertible note then outstanding and (ii) if no dividends are paid on the Company’s Common Stock in the quarter prior to any interest payment date, then the Company may make no payment in cash on such date, and all of the interest otherwise payable on such date will be added to the principal amount of the note then outstanding. | |||||||||||||||||||
As of December 31, 2014, the Company was in compliance with the covenants of the 8.0% Convertible Notes and has paid all of the interest due there under in cash. | |||||||||||||||||||
Junior Subordinated Notes | |||||||||||||||||||
The Company assumed $49,614 aggregate principal amount of junior subordinated notes outstanding at the time of the Merger. The Company recorded the debt at fair value on the acquisition date. Any difference between the fair value of the junior subordinated notes on the Merger date and the principal amount of debt is amortized into earnings over the estimated remaining life of the underlying debt as an adjustment to interest expense. | |||||||||||||||||||
The junior subordinated notes are payable to two special purpose trusts: | |||||||||||||||||||
1. Alesco Capital Trust I: $28,995 in aggregate principal amount issued in June 2007. The notes mature on July 30, 2037 and may be called by the Company at par any time after July 30, 2012. The notes accrued interest payable quarterly at a fixed interest rate equal to 9.495% per annum through the distribution payment date on July 30, 2012 and thereafter accrue at a floating interest rate equal to LIBOR plus 400 basis points per annum through July 30, 2037. All principal is due at maturity. The Alesco Capital Trust I simultaneously issued 870 shares of the Alesco Capital Trust I’s common securities to the Company for a purchase price of $870, which constitutes all of the issued and outstanding common securities of the Alesco Capital Trust I. | |||||||||||||||||||
2. Sunset Financial Statutory Trust I (“Sunset Financial Trust”): $20,619 in aggregate principal amount issued in March 2005. The notes mature on March 30, 2035. The notes accrue interest payable quarterly at a floating rate of interest of 90-day LIBOR plus 415 basis points. All principal is due at maturity. The Sunset Financial Trust simultaneously issued 619 shares of the Sunset Financial Trust’s common securities to the Company for a purchase price of $619, which constitutes all of the issued and outstanding common securities of the Sunset Financial Trust. | |||||||||||||||||||
Alesco Capital Trust I and Sunset Financial Trust (collectively, ”the Trusts”) described above are VIEs pursuant to variable interest provisions included in FASB ASC 810 because the holders of the equity investment at risk do not have adequate decision making ability over the Trusts’ activities. The Company is not the primary beneficiary of the Trusts as it does not have the power to direct the activities of the Trusts. The Trusts are not consolidated by the Company and, therefore, the Company’s consolidated financial statements include the junior subordinated notes issued to the Trusts as a liability, and the investment in the Trusts’ common securities as an asset. The common securities were deemed to have a fair value of $0 as of the Merger Date. These are accounted for as cost method investments; therefore the Company does not adjust the value at each reporting period. Any income generated on the common securities is recorded as interest income, a component of interest expense, net, in the consolidated statement of operations. | |||||||||||||||||||
The junior subordinated notes have several financial covenants. Since the Merger, IFMI has been in violation of one covenant of the Alesco Capital Trust I. As a result of this violation, IFMI is prohibited from issuing additional debt that is either subordinated to or pari passu with the Alesco Capital Trust I debt. This violation does not prohibit IFMI from issuing senior debt or the Operating LLC from issuing debt of any kind. IFMI is in compliance with all other covenants of the junior subordinated notes. The Company does not consider this violation to have a material adverse impact on its operations or on its ability to obtain financing in the future. | |||||||||||||||||||
Subordinated Notes Payable | |||||||||||||||||||
The Subordinated Notes matured and were paid in full on June 20, 2013 and bore interest at an annual rate of 12%. A portion of this interest, 9%, was payable in cash semiannually on May 1 and November 1 of each year. The remaining portion, 3%, was paid in kind at an annual rate of 3%, which was also payable semiannually. | |||||||||||||||||||
Promissory Notes Issued in Connection with the Repurchase of Mandatorily Redeemable Equity Interests | |||||||||||||||||||
On October 5, 2012, PrinceRidge issued a promissory note of $4,824 to certain former members who had withdrawn. As a result, the Company reclassified $4,824 from mandatorily redeemable equity interests that were included as a component of accounts payable and other liabilities to debt. The note bore interest at 5% and was paid in full on December 21, 2012. | |||||||||||||||||||
Star Asia Manager Note Payable | |||||||||||||||||||
In connection with the Star Asia Manager Repurchase Transaction in March 2013, Star Asia Manager had paid cash of $425 and issued to Mercury a note payable in the principal amount of $725. See notes 4 and 15. Under the note payable, interest accrued on the unpaid balance of the principal amount at a floating rate equal to three-month LIBOR plus 2.75% per annum. The Star Asia Manager note payable was paid in full in October 2013. | |||||||||||||||||||
Deferred Financing | |||||||||||||||||||
The Company paid $670 of deferred financing costs during the year ended December 31, 2013 associated with the issuance of the 8.0% Convertible Notes. The Company recognized interest expense from deferred financing costs of $111, $26, and $0 for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||||
Interest Expense, net | |||||||||||||||||||
From January 1, 2012 to December 31, 2014, interest expense includes interest incurred in connection with the Company’s debt described in this note, the amortization of deferred financing related to the 8.0% Convertible Notes, the amortization of discount related to the convertible senior notes and the junior subordinated notes, interest income or expense related to the amounts owed to withdrawing partners of PrinceRidge (see note 18), and other miscellaneous items. | |||||||||||||||||||
Redeemable_NonControlling_Inte
Redeemable Non-Controlling Interest (Temporary Equity) And Mandatorily Redeemable Equity Interests | 12 Months Ended |
Dec. 31, 2014 | |
Redeemable Non-Controlling Interest (Temporary Equity) [Abstract] | |
Redeemable Non-Controlling Interest (Temporary Equity) And Mandatorily Redeemable Equity Interests | 18. REDEEMABLE NON-CONTROLLING INTEREST |
The redeemable non-controlling interest represented the equity interests of PrinceRidge that were not owned by the Company. The members of PrinceRidge had the right to withdraw from PrinceRidge and require PrinceRidge to redeem the interests for cash over a contractual payment period. The Company’s policy on accounting for the redeemable non-controlling interest is discussed in note 3-O. | |
Conditionally Redeemable Non-Controlling Interest (Temporary Equity) | |
During the year ended December 31, 2012, the Company reclassified $6,446 from redeemable non-controlling interest to mandatorily redeemable equity interests, which was included as a component of accounts payable and other liabilities in the Company’s consolidated balance sheets, due to partnership withdrawals from PrinceRidge. In addition, PrinceRidge purchased $6,172 of non-controlling interest for cash during the year ended December 31, 2012 from existing partners, and received $20 in cash related to capital contributions made to PrinceRidge during the year ended December 31, 2012. | |
During 2013, the Company purchased $789 of non-controlling interest for cash from existing partners. As of December 31, 2014 and 2013, the Company had no redeemable non-controlling interest outstanding. | |
Mandatorily Redeemable Non-Controlling Interest (Liability) | |
During the year ended December 31, 2012, the Company distributed cash of $3,723 to the holders of mandatorily redeemable equity interests. During the year ended December 31, 2013, the Company distributed cash of $86 to the holders of the mandatorily redeemable equity interests. | |
As of December 31, 2014 and 2013, the Company had no redeemable non-controlling interest outstanding. | |
Permanent_Equity
Permanent Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Permanent Equity [Abstract] | |||||||||||||
Permanent Equity | 19. PERMANENT EQUITY | ||||||||||||
Stockholders’ Equity | |||||||||||||
Common Stock | |||||||||||||
The holders of the Company’s Common Stock are entitled to one vote per share. These holders are entitled to receive distributions on such stock when, as, and if authorized by the Company’s Board of Directors out of funds legally available and declared by the Company, and to share ratably in the assets legally available for distribution to the Company’s stockholders in the event of its liquidation, dissolution, or winding up after payment of or adequate provision for all of the Company’s known debts and liabilities, including the preferential rights on dissolution of any class or classes of preferred stock. The holders of the Company’s Common Stock have no preference, conversion, exchange, sinking fund, redemption, or, so long as the Company’s Common Stock remains listed on a national exchange, appraisal rights and have no preemptive rights to subscribe for any of the Company’s securities. Shares of the Company’s Common Stock have equal dividend, liquidation, and other rights. | |||||||||||||
Preferred Stock | |||||||||||||
Series C Junior Participating Preferred Stock: Series C Junior Participating Preferred Stock (“Series C Preferred Stock”) was authorized by the Company’s Board of Directors in connection with the Stockholder Rights Plan discussed below. The Series C Preferred Stock has a par value of $0.001 per share and 10,000 shares were authorized as of December 31, 2014 and 2013, respectively. The holders of Series C Preferred Stock are entitled to receive, when, as, and if declared by the Company’s Board of Directors out of funds legally available for the purpose, quarterly dividends payable in cash on the last day of March, June, September, and December in each year commencing on the first quarterly dividend payment date after the first issuance of a share or fraction of a share of Series C Preferred Stock. Dividends accrue and are cumulative. The holder of each share of Series C Junior Participating Preferred Stock is entitled to 10,000 votes on all matters submitted to a vote of the Company’s stockholders. Holders of Series C Preferred Stock are entitled to receive dividends, distributions or distributions upon liquidation, dissolution, or winding up of the Company in an amount equal to $100,000 per share of Series C Preferred Stock, plus an amount equal to accrued and unpaid dividends and distributions, whether or not declared, prior to payments made to holders of shares of stock ranking junior to the Series C Preferred Stock. The shares of Series C Preferred Stock are not redeemable. There were no shares of Series C Preferred Stock issued and outstanding as of December 31, 2014 and 2013. | |||||||||||||
Series E Voting Non-Convertible Preferred Stock: Each share of the Company’s Series E Voting Non-Convertible Preferred Stock (“Series E Preferred Stock”) has no economic rights but entitles Mr. Cohen, the Company’s Vice Chairman, to vote the Series E Preferred Stock on all matters presented to the Company’s stockholders. Each share of Series E Preferred Stock is entitled to one vote. The 4,983,557 shares of Series E Preferred Stock currently outstanding are equivalent to the amount of Operating LLC membership units held by Mr. Cohen as of December 31, 2013. See note 1. The 4,983,557 shares of Series E Preferred Stock were issued on May 9, 2013 in exchange for the 4,983,557 shares of Series D Voting Non-Convertible Preferred Stock (“Series D Preferred Stock”) held by CBF, an entity wholly owned by Mr. Cohen. The Series E Preferred Stock effectively gives Mr. Cohen voting rights at the Company in the same proportion as his economic interest (as his membership units of the Operating LLC do not carry voting rights at the Company level). The Series E Preferred Stock effectively enables Mr. Cohen to exercise approximately 24.9% of the voting power of the Company’s total shares outstanding that were entitled to vote as of December 31, 2014. The terms of the Series E Preferred Stock provide that, if the Company causes the redemption of or otherwise acquires any of the Operating LLC units owned by Mr. Cohen as of May 9, 2013, then the Company will redeem an equal number of shares of Series E Preferred Stock. The Series E Preferred Stock is otherwise perpetual. All former Series D Preferred Stock and Series B Voting Non-Convertible Preferred Stock, which entitled Mr. Cohen to vote on all matters presented to the Company’s stockholders, were cancelled on May 9, 2013 and December 28, 2012, respectively. As of December 31, 2014, there were 4,983,557 shares of Series E Preferred Stock issued and outstanding. See Non-Controlling Interest — Future Conversion / Redemption of Operating LLC Units below. | |||||||||||||
Stockholder Rights Plan | |||||||||||||
The Company’s Board of Directors adopted a Section 382 Rights Agreement on December 21, 2009 (the “2009 Rights Agreement”) in an effort to protect against a possible limitation on the Company’s ability to use its net operating loss and net capital loss carry forwards (the “deferred tax assets”) to reduce potential future federal income tax obligations. No rights pursuant to the 2009 Rights Agreement were exercisable at December 31, 2012 or 2011. There was no impact to the Company’s financial results as a result of the adoption of the 2009 Rights Agreement. The 2009 Rights Agreement expired on December 31, 2012. | |||||||||||||
In connection with the investments by Mead Park Capital and EBC (see note 4), on May 9, 2013, the Company’s Board of Directors adopted the Section 382 Rights Agreement between the Company and Computershare Shareowner Services LLC (the “2013 Rights Agreement”) in an effort to protect stockholder value by attempting to protect against a possible limitation on the Company’s ability to use its deferred tax assets to reduce potential future federal income tax obligations. The Company’s Board of Directors authorized and declared a dividend distribution of one right for each share of the Company’s Common Stock outstanding at the close of business on May 20, 2013. Each right entitles the registered holder to purchase from the Company one ten-thousandth of a share of the Company’s Series C Junior Participating Preferred Stock at an exercise price of $100.00 per one ten-thousandth of a share of the Company’s Series C Junior Participating Preferred Stock, subject to adjustment. | |||||||||||||
The rights will become exercisable following (i) the 10th day following a public announcement that a person or group of affiliated or associated persons has acquired beneficial ownership of 4.95% or more of the Company’s Common Stock or (ii) the 10th business day following the commencement of a tender offer or exchange offer that would result in a person or group having ownership of 4.95% or more of the Company’s Common Stock. | |||||||||||||
The 2013 Rights Agreement has no voting privileges and will expire on the earliest of (i) the close of business on October 1, 2016, (ii) the time at which the rights are redeemed pursuant to the 2013 Rights Agreement, (iii) the time at which the rights are exchanged pursuant to the 2013 Rights Agreement, (iv) the repeal of Section 382 of the Internal Revenue Code or any successor statute if the Company’s Board of Directors determines that the 2013 Rights Agreement is no longer necessary or desirable for the preservation of certain tax benefits, and (v) the beginning of the taxable year in which the Company’s Board of Directors determines that certain tax benefits may not be carried forward. | |||||||||||||
No rights were exercisable at December 31, 2014. There was no impact to the Company’s financial results as a result of the adoption of the 2013 Rights Agreement. The terms and the conditions of the rights are set forth in the Section 382 Rights Agreement attached as Exhibit 4.1 to the IFMI’s Form 8-K filed with the Securities and Exchange Commission on May 13, 2013. | |||||||||||||
Net Share Settlement of Restricted Stock | |||||||||||||
The Company may, from time to time, net share settle equity-based awards for the payment of employees’ tax obligations to taxing authorities related to the vesting of such equity-based awards. The total shares withheld are based on the value of the restricted award on the applicable vesting date as determined by the Company’s closing stock price. These net share settlements reduced and retired the number of shares that would have otherwise been issued as a result of the vesting and do not represent an expense to the Company. | |||||||||||||
Repurchases of Shares and Retirement of Treasury Stock | |||||||||||||
During the third quarter of 2012, the Company retired 50,400 shares, resulting in an increase of $328 in accumulated deficit, and a decrease of $328 in treasury stock. The shares remain as authorized stock; however, they are now considered unissued. In conjunction with this retirement, IFMI surrendered an equal number of units to the Operating LLC. | |||||||||||||
During the third quarter of 2014, the Company repurchased 100,000 shares of the Company’s Common Stock at $2.07 per share from the Company’s Vice Chairman, Daniel G. Cohen. The Company retired these shares. | |||||||||||||
During the fourth quarter of 2014, the Company repurchased 100,000 shares of the Company’s Common Stock at $1.77 per share from the Company’s Vice Chairman, Daniel G. Cohen. The Company retired these shares. | |||||||||||||
Dividends and Distributions | |||||||||||||
During 2014, 2013 and 2012, the Company paid cash dividends on its outstanding Common Stock in the amount of $1,278, $1,066, and $953, respectively. Pro-rata distributions were made to the other members of the Operating LLC upon the payment of dividends to the Company’s stockholders. During 2014, 2013, and 2012, the Company paid cash distributions of $419, $431, and $420, respectively, to the holders of the non-controlling interest (that is, the members of the Operating LLC other than IFMI). | |||||||||||||
Certain subsidiaries of the Operating LLC have restrictions on the withdrawal of capital and otherwise in making distributions and loans. JVB is subject to net capital restrictions imposed by the SEC and FINRA, which require certain minimum levels of net capital to remain in this subsidiary. In addition, these restrictions could potentially impose notice requirements or limit the Company’s ability to withdraw capital above the required minimum amounts (excess capital) whether through distribution or loan. CCFL is regulated by the Financial Services Authority in the United Kingdom and must maintain certain minimum levels of capital but will allow withdrawal of excess capital without restriction. See note 23. | |||||||||||||
Shares Outstanding of Stockholders’ Equity of the Company | |||||||||||||
The following table summarizes the share transactions that occurred in stockholders’ equity during the years ended December 31, 2014, 2013, and 2012. | |||||||||||||
ROLLFORWARD OF SHARES OUTSTANDING OF | |||||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. | |||||||||||||
Common Stock | Restricted Stock | Treasury Stock | Total | ||||||||||
31-Dec-11 | 10,132,497 | 2,597,620 | -50,400 | 12,679,717 | |||||||||
Issuance of shares | 230,846 | - | - | 230,846 | |||||||||
Issuance as equity-based compensation | - | 428,984 | - | 428,984 | |||||||||
Vesting of shares | 643,830 | -643,830 | - | - | |||||||||
Shares withheld for employee taxes | -162,048 | - | - | -162,048 | |||||||||
Forfeiture / cancellation of restricted stock (1) | - | -1,508,353 | - | -1,508,353 | |||||||||
Surrender of restricted stock (1) | - | -116,595 | - | -116,595 | |||||||||
Retirement of treasury stock | -50,400 | - | 50,400 | - | |||||||||
31-Dec-12 | 10,794,725 | 757,826 | - | 11,552,551 | |||||||||
Issuance of shares | 2,935,506 | - | - | 2,935,506 | |||||||||
Issuance as equity-based compensation | - | 408,079 | - | 408,079 | |||||||||
Vesting of shares / restricted units (2) | 739,931 | -649,796 | - | 90,135 | |||||||||
Shares withheld for employee taxes | -71,583 | - | - | -71,583 | |||||||||
Forfeiture / cancellation of restricted stock | - | -104,983 | - | -104,983 | |||||||||
31-Dec-13 | 14,398,579 | 411,126 | - | 14,809,705 | |||||||||
Issuance of shares | 186,342 | - | - | 186,342 | |||||||||
Issuance as equity-based compensation | - | 158,438 | - | 158,438 | |||||||||
Vesting of shares / restricted units (2) | 511,318 | -378,868 | - | 132,450 | |||||||||
Shares withheld for employee taxes | -37,458 | - | - | -37,458 | |||||||||
Forfeiture / cancellation of restricted stock | - | -32,258 | - | -32,258 | |||||||||
Repurchase and retirement of common stock | -200,000 | - | - | -200,000 | |||||||||
December 31, 2014 (3) | 14,858,781 | 158,438 | - | 15,017,219 | |||||||||
(1)In December 2012, Mr. Cohen transferred 116,595 restricted shares of IFMI Common Stock to the Company in order to satisfy his obligation under the Equity Funding Agreement. See note 20 for the discussion about the 2009 Restricted Units Pursuant to the 2009 Equity Award Plan. | |||||||||||||
(2)Vesting includes 132,450 and 90,135 of unvested restricted units of IFMI Common Stock for the years ended December 31, 2014 and 2013, respectively. See note 20. | |||||||||||||
(3)Excludes remaining restricted units of IFMI Common Stock. See note 20. | |||||||||||||
Non-Controlling Interest | |||||||||||||
Future Conversion / Redemption of Operating LLC Units | |||||||||||||
Of the 5,324,090 Operating LLC membership units not held by the Company as of December 31, 2014 and 2013, respectively, Daniel G. Cohen, the Company’s Vice Chairman, through CBF, a single member LLC, held 4,983,557 Operating LLC membership units. Each Operating LLC membership unit is redeemable at the member’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’s 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. | |||||||||||||
In December 2012, 116,595 restricted units of the Operating LLC vested pursuant to the Cohen Brothers, LLC Amended and Restated 2009 Equity Award Plan (the “2009 Equity Award Plan”). See note 20. The holders of 44,507 vested Operating LLC membership units elected to redeem these units. The Company, at its discretion, issued 44,507 shares of the Company’s Common Stock, in exchange for the 44,507 vested membership units. The holder of 72,088 vested Operating LLC membership units elected to remain a partner of the Operating LLC. | |||||||||||||
In connection with the private placement investment made in September 2013 by Mead Park Capital and EBC, as assignee of CBF, in IFMI, the Operating LLC issued 2,749,167 Operating LLC membership units to IFMI. | |||||||||||||
In connection with the repurchase and retirement of 200,000 of the Company’s Common Stock during 2014, IFMI surrendered 200,000 Operating LLC membership units. | |||||||||||||
Unit Issuance and Surrender Agreement — 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”); that 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. | |||||||||||||
The following table summarizes the transactions that resulted in changes in the unit ownership of the Operating LLC including unit issuances and forfeitures related to the UIS agreement. | |||||||||||||
ROLLFORWARD OF UNITS OUTSTANDING OF | |||||||||||||
THE OPERATING LLC | |||||||||||||
Units Held by IFMI | Units Held by Daniel G. Cohen | Units Held by Others | Total | ||||||||||
31-Dec-11 | 10,248,009 | 4,983,557 | 268,445 | 15,500,011 | |||||||||
Issuance of Units under UIS, net | 705,083 | - | - | 705,083 | |||||||||
Vesting of Units | - | - | 302,934 | 302,934 | |||||||||
Redemption of Operating LLC Units for cash | 230,846 | - | -230,846 | - | |||||||||
Retirement of treasury stock | -50,400 | - | - | -50,400 | |||||||||
31-Dec-12 | 11,133,538 | 4,983,557 | 340,533 | 16,457,628 | |||||||||
Issuance of Units under UIS, net | 502,614 | - | - | 502,614 | |||||||||
Issuance of Units for Mead/EBC Investment | 2,749,167 | - | - | 2,749,167 | |||||||||
Vesting of Units | - | - | 186,339 | 186,339 | |||||||||
Redemption of Operating LLC Units for IFMI Shares | 186,339 | - | -186,339 | - | |||||||||
31-Dec-13 | 14,571,658 | 4,983,557 | 340,533 | 19,895,748 | |||||||||
Issuance of Units under UIS, net | 459,219 | - | - | 459,219 | |||||||||
Vesting of Units | - | - | 186,342 | 186,342 | |||||||||
Redemption of Operating LLC Units for IFMI Shares | 186,342 | - | -186,342 | - | |||||||||
Repurchase and retirement of common stock | -200,000 | - | - | -200,000 | |||||||||
December 31, 2014 (1) | 15,017,219 | 4,983,557 | 340,533 | 20,341,309 | |||||||||
(1)Unit amounts above exclude unvested Operating LLC units. See note 20. | |||||||||||||
The following schedule presents the impact to permanent equity from IFMI’s ownership interest in the Operating LLC for the years ended December 31, 2014, 2013, and 2012. | |||||||||||||
For the Year Ended December 31, 2014 | For the Year Ended December 31, 2013 | For the Year Ended December 31, 2012 | |||||||||||
Net income / (loss) attributable to IFMI | $ | -2,585 | $ | -13,318 | $ | -968 | |||||||
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 | 215 | 2,764 | 928 | ||||||||||
Changes from net income / loss) attributable to IFMI and transfers (to) from non-controlling interest | $ | -2,370 | $ | -10,554 | $ | -40 | |||||||
Equity_Based_Compensation
Equity Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Equity Based Compensation | 20. EQUITY-BASED COMPENSATION | ||||||||||||
As described in note 3-Q, the Company’s equity-based compensation paid to its employees is comprised of Restricted Units, Restricted Stock, and stock options. | |||||||||||||
The following table summarizes the amounts the Company recognized as equity-based compensation expense including Restricted Stock, Restricted Units, and stock options. These amounts are included as a component of compensation and benefits in the consolidated statements of operations. The remaining unrecognized compensation expense related to unvested awards at December 31, 2014 was $1,404 and the weighted average period of time over which this expense will be recognized is approximately 2.0 years. The awards assume estimated forfeitures during the vesting period, which were updated to reflect the actual forfeitures that occurred during the relevant periods. | |||||||||||||
EQUITY-BASED COMPENSATION INCLUDED IN COMPENSATION AND BENEFITS | |||||||||||||
(Dollars in Thousands) | |||||||||||||
For the year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Equity-based compensation expense | $ | 1,319 | $ | 1,947 | $ | 1,271 | |||||||
Non equity-based compensation expense | 28,445 | 45,220 | 61,680 | ||||||||||
Total compensation and benefits | $ | 29,764 | $ | 47,167 | $ | 62,951 | |||||||
The following table summarizes the equity-based compensation by plan. Each plan is discussed in detail below. | |||||||||||||
DETAIL OF EQUITY BASED COMPENSATION BY PLAN | |||||||||||||
For the year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
The 2009 Equity Award Plan | $ | - | $ | - | $ | -586 | |||||||
Operating LLC Units - JVB Acquisition | 32 | 911 | 911 | ||||||||||
Restricted Units - 2006/2010 Plans | 538 | 905 | 1,290 | ||||||||||
Options - 2010 Plan | 749 | 114 | - | ||||||||||
Restricted PrinceRidge units (1) | - | 17 | -344 | ||||||||||
Total equity based compensation expense | $ | 1,319 | $ | 1,947 | $ | 1,271 | |||||||
-1 | Relates to the issuance of restricted PrinceRidge units to certain investment banking professionals and executives of PrinceRidge. As of December 31, 2014, there were no restricted PrinceRidge units outstanding. | ||||||||||||
The 2009 Equity Award Plan | |||||||||||||
The 2009 Equity Award Plan was originally adopted by the Company in August 2009 and was amended and restated on April 28, 2010. The 2009 Equity Award Plan permitted the grant of Operating LLC restricted units to the Company’s employees, which represented the right to receive, upon vesting of the restricted unit, the number of Operating LLC membership units in the restricted unit agreement. The awards under this plan were subject to time-based and/or performance-based vesting conditions and generally vested over a period of three years ending in December 2012. All awards pursuant to this plan were subject to the prior written consent of the Company’s Vice Chairman, Daniel G. Cohen. In December 2012, all of the 116,595 restricted units that were outstanding vested. Following the vesting of the restricted units in December 2012, the 2009 Equity Award Plan expired. | |||||||||||||
In connection with the 2009 Equity Award Plan, Mr. Cohen and the Operating LLC were parties to an Equity Plan Funding Agreement (the “Equity Funding Agreement”) whereby Mr. Cohen was required to transfer to (1) the Operating LLC the number of Operating LLC membership units or shares of the Company’s Common Stock equal to the number of Operating LLC membership units to be issued by the Operating LLC to the participants in the 2009 Equity Award Plan in connection with vesting of an Operating LLC restricted unit, or (2) the Company the number of shares of Common Stock equal to the number of Operating LLC membership units to be issued to the participants in the 2009 Equity Award Plan in connection with the vesting of an Operating LLC restricted unit. As a result of the Equity Funding Agreement, the capitalization of the Operating LLC did not change as result of the issuance of Operating LLC restricted units under the 2009 Equity Award Plan. In December 2012, Mr. Cohen transferred 116,595 restricted shares of IFMI Common Stock to the Company in order to satisfy his obligation under the Equity Funding Agreement. | |||||||||||||
Substantially all of the 2009 Equity Award Plan awards were issued during 2009 prior to the Merger. For the awards that were issued prior to the Merger, the Company determined the fair value of these restricted units based on the implied value of a Cohen Brothers membership unit derived from the Company’s public stock price on the date of grant multiplied by the exchange ratio called for in the Merger Agreement. For the awards that were issued during 2010, the Company determined the fair value of these restricted units based on the Company’s stock price on the date of grant. There were no grants made after 2010. | |||||||||||||
Restricted Units of the Operating LLC Related to the JVB Holdings Acquisition | |||||||||||||
In connection with the acquisition of JVB Holdings in January 2011, the Company issued 559,020 restricted units of the Operating LLC to certain JVB Holdings Sellers who remained employees of JVB Holdings. These units included a service requirement and vested over a three year period ending in January 2014 and were treated as compensation for future service rather than as part of the purchase price to acquire JVB. The weighted average grant date fair value for the restricted units was $4.89. As of December 31, 2014 and December 31, 2013, 0 and 186,342 restricted units, respectively, of the Operating LLC were unvested. Upon vesting, the restricted units may be redeemed by the employee and the Company, at its discretion, may either pay cash or issue an equivalent number of IFMI Common Stock for the redemption of vested restricted units. All units of the Operating LLC vested and were redeemed by the JVB Holdings Sellers and the Company issued an equivalent number of IFMI Common Stock for the redemption of the vested restricted units in each period. See note 19. | |||||||||||||
During the years ended December 31, 2014 and 2013, the total fair value of the restricted Operating LLC awards related to the JVB Holdings acquisition that vested based on the fair market value derived from the closing stock price of the Company’s Common Stock on the vesting date during the year ended December 31, 2014 and 2013 was $435 and $233, respectively. | |||||||||||||
The AFN 2006 Equity Incentive Plan and the Institutional Financial Markets Inc. 2010 Long-Term Incentive Plan – Restricted Common Stock, Restricted Units and Stock Options | |||||||||||||
In connection with the Merger, the Company assumed the AFN 2006 Equity Incentive Plan (the “2006 Equity Incentive Plan”). In addition, the Company adopted the Institutional Financial Markets, Inc. 2010 Long-Term Incentive Plan (the “2010 Equity Incentive Plan”) on April 22, 2010, which was approved by the Company’s stockholders at the Company’s annual meeting on December 10, 2010, and amended on April 18, 2011 and amended and restated on March 8, 2012 and again on November 30, 2013. The 2006 Equity Incentive Plan and the 2010 Equity Incentive Plan are collectively referred to as the “Equity Incentive Plans.” The Equity Incentive Plans provide for the granting of stock options, restricted Common Stock, restricted units, stock appreciation rights, and other share-based awards. The Equity Incentive Plans are administered by the compensation committee of the Company’s Board of Directors. 1,239,488 shares remained available to be issued under these plans as of December 31, 2014. | |||||||||||||
RESTRICTED STOCK AND RESTRICTED UNITS - SERVICE BASED VESTING | |||||||||||||
Number of Shares of Restricted Stock | Weighted average grant date fair value | Number of Restricted Units | Weighted average grant date fair value | ||||||||||
Unvested at January 1, 2012 | 1,574,064 | $ | 4.17 | 40,135 | $ | 3.26 | |||||||
Granted | 396,726 | 1.43 | 132,450 | 1.51 | |||||||||
Vested | -543,830 | 4.47 | - | - | |||||||||
Forfeited | -883,308 | 3.75 | - | - | |||||||||
Surrendered (1) | -116,595 | 5.00 | - | - | |||||||||
Unvested at December 31, 2012 | 427,057 | 1.87 | 172,585 | 1.92 | |||||||||
Granted | 408,079 | 1.98 | - | - | |||||||||
Vested | -522,008 | 1.62 | -40,135 | 3.26 | |||||||||
Forfeited | -1,828 | 4.89 | - | - | |||||||||
Unvested at December 31, 2013 | 311,300 | 2.42 | 132,450 | 1.51 | |||||||||
Granted | 158,438 | 2.43 | - | - | |||||||||
Vested | -311,300 | 2.42 | -132,450 | 1.51 | |||||||||
Unvested at December 31, 2014 | 158,438 | $ | 2.43 | - | $ | - | |||||||
(1) In December 2012, Mr. Cohen transferred 116,595 restricted shares of IFMI Common Stock to the Company in order to satisfy his obligation under the Equity Funding Agreement related to the 2009 Equity Award Plan. These shares were treated as vested and compensation expense was fully recognized. | |||||||||||||
RESTRICTED STOCK AND RESTRICTED UNITS - PERFORMANCE AND SERVICE BASED VESTING | |||||||||||||
Number of Shares of Restricted Stock | Weighted average grant date fair value | Number of Restricted Units (1) | Weighted average grant date fair value | ||||||||||
Unvested at January 1, 2012 | 1,023,556 | $ | 4.72 | 50,000 | $ | 3.07 | |||||||
Granted | 32,258 | 1.47 | 500,000 | -1 | |||||||||
Vested | -100,000 | 4.60 | - | - | |||||||||
Forfeited | -625,045 | 4.69 | -50,000 | 3.07 | |||||||||
Unvested at December 31, 2012 | 330,769 | 4.34 | 500,000 | $ | - | ||||||||
Granted | - | - | 50,000 | 2.42 | |||||||||
Vested | -127,788 | 4.34 | -50,000 | 2.42 | |||||||||
Forfeited | -103,155 | 4.89 | - | - | |||||||||
Unvested at December 31, 2013 | 99,826 | 3.78 | 500,000 | $ | - | ||||||||
Granted | - | - | - | - | |||||||||
Vested | -67,568 | 4.89 | - | - | |||||||||
Forfeited | -32,258 | 1.47 | - | - | |||||||||
Unvested at December 31, 2014 | - | $ | - | 500,000 | $ | - | |||||||
(1)During the first quarter of 2012, the Company issued 500,000 restricted units of IFMI Common Stock to a non-employee. FASB ASC 505-50 requires that an equity instrument issued to a non-employee should be measured by using the stock price and other measurement assumptions as of the earlier of the date at which either (i) a commitment for performance by the counterparty has been reached or (2) the counterparty’s performance is complete. In accordance with FASB ASC 505-50, the Company will not accrue any expense until the actual vesting date occurs. As of the grant date, the restricted units were valued at $0. | |||||||||||||
The total fair value of all equity awards vested in each year based on the fair market value of the Company’s Common Stock on the vesting date during the years ended December 31, 2014, 2013, and 2012, was $1,086, $1,667, and $947, respectively. | |||||||||||||
The restricted shares and restricted units of Common Stock typically may vest either quarterly, annually, or at the end of a specified term on a straight line basis over the remaining term of the awards, assuming the recipient is continuing in service to the Company at such date, and, in the case of performance based equity awards, the performance thresholds have been attained. In the case of director grants, the equity awards are restricted for one year but have no performance or service conditions. | |||||||||||||
STOCK OPTIONS - SERVICE BASED VESTING | |||||||||||||
Number of Options | Weighted Average Exercise Price | Weighted average grant date fair value | Weighted Average Remaining Contractual Term (in years) | ||||||||||
Balance at January 1, 2013 | - | $ | - | ||||||||||
Granted | 3,000,000 | 4.00 | $ 0.70 | ||||||||||
Vested | - | - | |||||||||||
Forfeited | - | - | |||||||||||
Balance at December 31, 2013 | 3,000,000 | 4.00 | |||||||||||
Granted | 278,571 | 4.00 | $ 0.70 | ||||||||||
Vested | - | - | |||||||||||
Forfeited | -85,714 | 4.00 | $ 0.70 | ||||||||||
Balance at December 31, 2014 | 3,192,857 | $ | 4.00 | $ 0.70 | 3.9 | ||||||||
Exercisable at December 31, 2014 | 763,094 | $ | 4.44 | - | |||||||||
-1 | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing stock price of the Company’s Common Stock of on December 31, 2014. As of December 31, 2014, all options were out of the money. | ||||||||||||
The fair values of the options granted during 2013 were estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: (i) expected volatility – 68.5%; (ii) expected dividends – 3.49%; (iii) expected lives of options (in years) – 4.0; and (iv) risk free rate – 0.96%. | |||||||||||||
The fair values of the options granted during 2014 were estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: (i) expected volatility – 68.1%; (ii) expected dividends – 3.42%; (iii) expected lives of options (in years) – 3.5; and (iv) risk free rate – 0.74%. | |||||||||||||
The expected volatility reflects IFMI’s past stock price volatility since December 16, 2009 (the Merger Date). The expected life of the options is based on the estimated average life of the options using the simplified method. The Company utilized the simplified method to determine the expected life of the options due to insufficient exercise activity during recent years as a basis from which to estimate future exercise patterns. The risk free rate is derived from public data sources at the time of the grant. Compensation cost is recognized over the vesting term of the option using the straight-line method. | |||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||||
Income Taxes | 21. INCOME TAXES | ||||||||||||||||||
For tax purposes, AFN contributed its assets and certain of its liabilities to Cohen Brothers in exchange for an interest in Cohen Brothers on December 16, 2009. AFN was organized and had been operated as a REIT for United States federal income tax purposes. Accordingly, AFN generally was not subject to United States federal income tax to the extent of its distributions to stockholders and as long as certain asset, income, distribution, and share ownership tests were met. As a result of the consummation of the Merger, IFMI ceased to qualify as a REIT effective as of January 1, 2010, and is instead treated as a C corporation for United States federal income tax purposes. The components of income tax expense (benefit) included in the consolidated statements of operations for each year presented herein are shown in the table below. | |||||||||||||||||||
INCOME TAX EXPENSE | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Current income tax expense (benefit): | |||||||||||||||||||
Federal income tax expense (benefit) | $ | - | $ | -1,442 | $ | 142 | |||||||||||||
Foreign income tax expense (benefit) | 228 | 8 | 20 | ||||||||||||||||
State and local income tax expense (benefit) | - | -57 | 120 | ||||||||||||||||
228 | -1,491 | 282 | |||||||||||||||||
Deferred income tax expense (benefit) | |||||||||||||||||||
Federal income tax expense (benefit) | -566 | -1,827 | -703 | ||||||||||||||||
Foreign income tax expense (benefit) | - | - | - | ||||||||||||||||
State and local income tax expense (benefit) | -76 | -247 | -194 | ||||||||||||||||
-642 | -2,074 | -897 | |||||||||||||||||
Total | $ | -414 | $ | -3,565 | $ | -615 | |||||||||||||
The components of income (loss) before income taxes is shown below: | |||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Domestic | $ | -2,583 | $ | -20,404 | $ | -3,711 | |||||||||||||
Foreign | -1,503 | -3,080 | 1,055 | ||||||||||||||||
Total Income (loss) before income taxes | $ | -4,086 | $ | -23,484 | $ | -2,656 | |||||||||||||
As of December 31, 2014, the Company had net current tax liability of $63 included as a component of accounts payable and other liabilities in the consolidated balance sheet. As of December 31, 2013, the Company had net prepaid taxes of $146 included as a component of other assets in the consolidated balance sheet. | |||||||||||||||||||
The expected income tax expense /(benefit) using the federal statutory rate differs from income tax expense / (benefit) pertaining to pre-tax income / (loss) as a result of the following for the years ended December 31, 2014, 2013, and 2012. | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Federal statutory rate - 35% | $ | -1,430 | $ | -8,220 | $ | -929 | |||||||||||||
Pass thru impact | 375 | 2,581 | 352 | ||||||||||||||||
Deferred tax valuation allowance | 489 | 3,812 | -42 | ||||||||||||||||
Recognition of previously unrecognized tax benefit | - | -1,231 | - | ||||||||||||||||
Other | 152 | -507 | 4 | ||||||||||||||||
Total | $ | -414 | $ | -3,565 | $ | -615 | |||||||||||||
Deferred tax assets and liabilities are determined based on the difference between the book basis and tax basis of assets and liabilities using tax rates in effect for the year in which the differences are expected to reverse. The recognition of deferred tax assets is reduced by a valuation allowance if it is more likely than not that the tax benefits will not be realized. | |||||||||||||||||||
The components of the net deferred tax asset (liability) are as follows. | |||||||||||||||||||
DEFERRED TAX ASSET AND LIABILITY | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||
Asset | Liability | Net | Asset | Liability | Net | ||||||||||||||
Federal net operating loss carry-forward | $ | 34,788 | $ | - | $ | 34,788 | $ | 33,439 | $ | - | $ | 33,439 | |||||||
State net operating loss carry-forward | 5,791 | - | 5,791 | 5,291 | - | 5,291 | |||||||||||||
Federal capital loss carry-forward | 10,597 | - | 10,597 | 23,784 | - | 23,784 | |||||||||||||
Unrealized gain on debt | - | -12,426 | -12,426 | - | -13,274 | -13,274 | |||||||||||||
Unrealized loss on investment in Operating LLC | 68,813 | - | 68,813 | 110,382 | - | 110,382 | |||||||||||||
Other | 754 | - | 754 | 873 | - | 873 | |||||||||||||
Gross deferred tax asset / (liability) | 120,743 | -12,426 | 108,317 | 173,769 | -13,274 | 160,495 | |||||||||||||
Less: valuation allowance | -112,205 | - | -112,205 | -165,025 | - | -165,025 | |||||||||||||
Net deferred tax asset / (liability) | $ | 8,538 | $ | -12,426 | $ | -3,888 | $ | 8,744 | $ | -13,274 | $ | -4,530 | |||||||
As of December 31, 2014, the Company had a federal net operating loss (“NOL”) of approximately $99,409, which will be available to offset future taxable income, subject to limitations described below. If not used, this NOL will begin to expire in 2028. The Company also had net capital losses (“NCLs”) in excess of capital gains of $25,754 as of December 31, 2014, which can be carried forward to offset future capital gains, subject to the limitations described below. If not used, this carry forward will begin to expire in 2015. No assurance can be made that the Company will have future taxable income or future capital gains to benefit from its NOL and NCL carryovers. | |||||||||||||||||||
The Company has determined that its NOL and NCL carryovers are not currently limited by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). However, the Company may experience an ownership change as defined in that section (“Ownership Change”) in the future. | |||||||||||||||||||
If an Ownership Change were to occur in the future, the Company’s ability to use its NOLs, NCLs, and certain recognized built-in losses to reduce its taxable income in a future year would generally be limited to an annual amount (the “Section 382 Limitation”) equal to the fair value of the Company immediately prior to the Ownership Change multiplied by the “long term tax-exempt interest rate.” In the event of an Ownership Change, NOLs and NCLs that exceed the Section 382 Limitation in any year will continue to be allowed as carry forwards for the remainder of the carry forward period, and such NOLs and NCLs can be used to offset taxable income for years within the carry forward period subject to the Section 382 Limitation in each year. However, if the carry forward period for any NOL or NCL were to expire before that loss is fully utilized, the unused portion of that loss would be lost. | |||||||||||||||||||
In connection with the investments by Mead Park Capital and EBC, the Company entered into the 2013 Rights Agreement on May 9, 2013, to protect the use of previously accumulated NOLs, NCLs, and certain other tax attributes by dissuading investors from aggregating ownership in the Company and triggering an ownership change. See note 19. | |||||||||||||||||||
Notwithstanding the facts that the Company has determined that the use of its remaining NOL and NCL carry forwards are not currently limited by Section 382 of the Code, the Company recorded a valuation allowance for a significant portion of its NOLs and NCLs when calculating its net deferred tax liability as of December 31, 2013. The valuation allowance was recorded because the Company determined it is not more likely than not that it will realize these benefits. | |||||||||||||||||||
In determining its federal income tax provision for 2014, the Company has assumed that it will retain the valuation allowance applied against its deferred tax asset related to the NOL and NCL carry forwards as of December 31, 2014. The Company’s determination that it is not more likely than not that it will realize future tax benefits from the NOLs and NCLs may change in the future. In the future, the Company may conclude that it is more likely than not that it will realize the benefit of all or a portion of the NOL and NCL carry forwards. If it makes this determination in the future, the Company would reduce the valuation allowance and record a tax benefit as a component of the statements of operations in the period it makes this determination. From that point forward, the Company would begin to record net deferred tax expense for federal and state income taxes as a component of its provision for income tax expense as it utilizes the NOLs and NCLs, for which the valuation allowance was removed. | |||||||||||||||||||
A reconciliation of the beginning and ending unrecognized tax benefits for years ended December 31, 2014, 2013, and 2012 follows. | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Unrecognized tax benefits as of January 1 | $ | - | $ | 1,231 | $ | 1,231 | |||||||||||||
Increases due to tax positions taken during prior periods | - | - | - | ||||||||||||||||
Increases due to tax positions taken in current period | - | - | - | ||||||||||||||||
Decreases due to settlements with tax authorities | - | - | - | ||||||||||||||||
Reductions due to lapse of applicable statute of limitations | - | -1,231 | - | ||||||||||||||||
Unrecognized tax benefits as of December 31 | $ | - | $ | - | $ | 1,231 | |||||||||||||
During the years ended December 31, 2014, 2013, and 2012, the Company recognized interest expense of $0, $0, and $79, respectively. The Company files tax returns in the U.S. federal jurisdiction, various states or local jurisdictions, the United Kingdom, Spain, and France. With few exceptions, the Company is no longer subject to examination for years prior to 2011. | |||||||||||||||||||
In December 2012, IFMI received notification from the IRS that the IRS would examine its 2011 federal tax return. The exam was conducted in February 2013, IFMI received notification from the IRS that the exam was complete and no adjustments were identified. | |||||||||||||||||||
Pennsylvania Income Tax Assessment | |||||||||||||||||||
In October 2013, the Company received a Pennsylvania corporate net income tax assessment from the Pennsylvania Department of Revenue in the amount of $4,683 (including penalties) plus interest 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 Board of Appeals, which was denied in June 2014. The Company filed an appeal with the Pennsylvania Board of Finance and Revenue. A hearing has been scheduled for April 7, 2015. 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. | |||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income / (Loss) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Accumulated Other Comprehensive Income (Loss) Disclosure [Abstract] | ||||||||||
Accumulated Other Comprehensive Income / (Loss) | ||||||||||
22. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | ||||||||||
The following table shows the components of other comprehensive income / (loss) and the tax effects allocated to other comprehensive income / (loss). | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) AND INCOME TAX EFFECT OF ITEMS ALLOCATED TO OTHER COMPREHENSIVE INCOME / (LOSS) | ||||||||||
(Dollars in thousands) | ||||||||||
Foreign currency items | Tax effect | Total | ||||||||
31-Dec-11 | $ | -626 | $ | - | $ | -626 | ||||
Change in foreign currency items | 154 | - | 154 | |||||||
Other comprehensive income / (loss), net | 154 | - | 154 | |||||||
Acquisition / (surrender) of additional units in consolidated subsidiary, net | -23 | - | -23 | |||||||
31-Dec-12 | -495 | - | -495 | |||||||
Change in foreign currency items | -14 | - | -14 | |||||||
Other comprehensive income / (loss), net | -14 | - | -14 | |||||||
Acquisition / (surrender) of additional units in consolidated subsidiary, net | -127 | - | -127 | |||||||
31-Dec-13 | -636 | - | -636 | |||||||
Change in foreign currency items | -126 | - | -126 | |||||||
Other comprehensive income / (loss), net | -126 | - | -126 | |||||||
Acquisition / (surrender) of additional units in consolidated subsidiary, net | -10 | - | -10 | |||||||
31-Dec-14 | $ | -772 | $ | - | $ | -772 | ||||
Net_Capital_Requirements
Net Capital Requirements | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Net Capital Requirements [Abstract] | ||||||||||
Net Capital Requirements | 23 . NET CAPITAL REQUIREMENTS | |||||||||
JVB is 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. | ||||||||||
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. | ||||||||||
The following table shows the actual net capital (in the case of the JVB) and actual net liquid capital (in the case of CCFL) as compared to the required amounts for the periods indicated. | ||||||||||
Statutory Net Capital Requirements | ||||||||||
(Dollars in thousands) | ||||||||||
As of December 31, 2014 | ||||||||||
Actual Net Capital or Liquid Capital | Amount Required | Excess | ||||||||
JVB | $ | 12,750 | $ | 267 | $ | 12,483 | ||||
CCFL | 3,502 | 2,038 | 1,464 | |||||||
Total | $ | 16,252 | $ | 2,305 | $ | 13,947 | ||||
As of December 31, 2013 | ||||||||||
Actual Net Capital or Liquid Capital | Amount Required | Excess | ||||||||
JVB | $ | 7,470 | $ | 188 | $ | 7,282 | ||||
CCPR | 18,566 | 250 | 18,316 | |||||||
CCFL | 2,593 | 2,198 | 395 | |||||||
Total | $ | 28,629 | $ | 2,636 | $ | 25,993 | ||||
Earnings_Loss_Per_Common_Share
Earnings / (Loss) Per Common Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings / (Loss) Per Common Share [Abstract] | |||||||||
Earnings / (Loss) Per Common Share | 24 . 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) | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Net income / (loss) attributable to IFMI | $ | -2,585 | $ | -13,318 | $ | -968 | |||
Add/ (deduct): Income / (loss) attributable to non-controlling interest attributable to Operating LLC membership units exchangeable into IFMI shares (1) | -1,087 | -6,592 | -857 | ||||||
Add / (deduct): Adjustment (2) | 185 | 876 | 307 | ||||||
Net income / (loss) on a fully converted basis | $ | -3,487 | $ | -19,034 | $ | -1,518 | |||
Weighted average common shares outstanding - Basic | 14,998,620 | 12,340,468 | 10,732,723 | ||||||
Unrestricted Operating LLC membership units exchangeable into IFMI shares (1) | 5,324,130 | 5,324,090 | 5,252,198 | ||||||
Weighted average common shares outstanding - Diluted (3) | 20,322,750 | 17,664,558 | 15,984,921 | ||||||
Net income / (loss) per common share - Basic | $ | -0.17 | $ | -1.08 | $ | -0.09 | |||
Net income / (loss) per common share - Diluted | $ | -0.17 | $ | -1.08 | $ | -0.09 | |||
(1)The Operating LLC membership units not held by IFMI (that is, those held by the non-controlling interest) may be redeemed and exchanged into shares of the Company on a one-to-one basis. The Operating LLC membership units not held by IFMI are redeemable at the member’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’s 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. These units are not included in the computation of basic earnings per share. These units enter into the computation of diluted net income / (loss) per common share when the effect is not anti-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 years ended December 31, 2014, 2013, and 2012, weighted average common shares outstanding excludes a total of 121,914, 395,457, and 144,401 shares, respectively, representing restricted Operating LLC units, restricted IFMI Common Stock, and restricted units of IFMI Common Stock. For the years ended December 31, 2014 and 2013, weighted average common shares outstanding also excludes 2,749,167 and 732,115 shares, respectively, from the assumed conversion of the 8% Convertibles Notes because the inclusion of the converted shares would be anti-dilutive. | |||||||||
Reserve_Requirements
Reserve Requirements | 12 Months Ended |
Dec. 31, 2014 | |
Reserve Requirements Disclosure [Abstract] | |
Reserve Requirements | 25. RESERVE REQUIREMENTS |
As of December 31, 2014 and 2013, JVB was not subject to the reserve requirements under Rule 15c3-3 of the Securities Exchange Act of 1934 because JVB does not carry securities accounts for their customers or perform custodial functions relating to customer securities and, therefore, they qualify for an exemption under Rule 15c3-3(k)(2)(ii). | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Commitments And Contingencies [Abstract] | ||||||||||
Commitments And Contingencies | 26. COMMITMENTS AND CONTINGENCIES | |||||||||
Lease Commitments | ||||||||||
The Company leases office space in several cities under agreements that expire prior to 2018. Future minimum commitments under these operating leases are as follows. | ||||||||||
FUTURE LEASE COMMITMENTS | ||||||||||
(Dollars in thousands) | ||||||||||
Lease | Less: Sublease | Net Commitment | ||||||||
2015 | $ | 4,332 | $ | -2,646 | $ | 1,686 | ||||
2016 | 3,275 | -2,105 | 1,170 | |||||||
2017 | 616 | - | 616 | |||||||
2018 | 312 | - | 312 | |||||||
2019 | 224 | - | 224 | |||||||
2020 and Thereafter | 249 | - | 249 | |||||||
$ | 9,008 | $ | -4,751 | $ | 4,257 | |||||
Rent expense for the years ended December 31, 2014, 2013, and 2012 was $1,660, $2,619, and $2,537, respectively, and was included in business development, occupancy, equipment expense in the consolidated statements of operations. Rent expense was recorded net of sublease income of $784, $304, and $68, for the year ended December 31, 2014, 2013, and 2012, respectively. The lease commitments noted above represent the actual cash commitments and will not necessarily match the amount of rent expense recorded in the consolidated statements of operations. See note 3-N. | ||||||||||
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, LLC (“CIRA”), are parties to litigation commenced on June 7, 2013, in the Supreme Court of the State of New York, currently captioned NRAM PLC (f/k/a Northern Rock (Asset Management) PLC) v. Société Générale Corporate and Investment Banking, et al. NRAM PLC, Plaintiff, served the Summons with Notice on Defendants on October 3, 2013, and filed its complaint relating to an investment in Kleros Preferred Funding VIII, Ltd., a collateralized debt obligation, on November 12, 2013. CCS and CIRA filed a motion to dismiss the complaint on January 27, 2014. On October 31, 2014, the Court ruled on the motion, dismissing certain of the Plaintiff’s theories. The litigation is ongoing and the Company intends to defend the action vigorously. | ||||||||||
In October 2013, the Company received a Pennsylvania corporate net income tax assessment from the Pennsylvania Department of Revenue in the amount of $4,683 (including penalties) plus interest 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 Board of Appeals, which was denied in June 2014. The Company filed an appeal with the Pennsylvania Board of Finance and Revenue. A hearing has been scheduled for April 7, 2015. 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. | ||||||||||
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. | ||||||||||
Alesco XIV Guarantee | ||||||||||
AFN invested in a CDO (Alesco XIV) in which Assured Guaranty (“Assured”) was providing credit support to the senior interests in securitizations. Alesco XIV made a loan (the “Guaranteed Loan”) to a particular borrower and AFN entered into an arrangement with Assured whereby AFN agreed to make payments to Assured upon the occurrence of both (i) a loss on the Guaranteed Loan and (ii) a loss suffered by Assured on its overall credit support arrangement to Alesco XIV security holders. This arrangement was accounted for as a guarantee by the Company. As of December 31, 2012, the Company had a liability of $1,084 related to this arrangement that was included in accounts payable and other liabilities in the Company’s consolidated balance sheets. In May 2013, the underlying loan was paid off in full by the borrower. As a result, the Company’s guarantee with Assured was extinguished. For the year ended December 31, 2013, the Company recognized other income of $1,084, which was included as a component of principal transactions and other income in the Company’s consolidated statements of operations, and wrote off the liability. | ||||||||||
Segment_And_Geographic_Informa
Segment And Geographic Information | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Segment and Geographic Information [Abstract] | |||||||||||||||||||
Segment And Geographic Information | 27. 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 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 note (1) in the table 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 | |||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 28,056 | $ | - | $ | - | $ | 28,056 | $ | - | $ | 28,056 | |||||||
Asset management | - | 14,496 | - | 14,496 | - | 14,496 | |||||||||||||
New issue and advisory | 5,219 | - | - | 5,219 | - | 5,219 | |||||||||||||
Principal transactions and other income | 397 | 5,362 | 2,220 | 7,979 | - | 7,979 | |||||||||||||
Total revenues | 33,672 | 19,858 | 2,220 | 55,750 | - | 55,750 | |||||||||||||
Total operating expenses | 32,831 | 10,500 | 370 | 43,701 | 11,761 | 55,462 | |||||||||||||
Operating income / (loss) | 841 | 9,358 | 1,850 | 12,049 | -11,761 | 288 | |||||||||||||
Income / (loss) from equity method affiliates | - | 27 | - | 27 | - | 27 | |||||||||||||
Other non-operating income / (expense) | - | - | - | - | -4,401 | -4,401 | |||||||||||||
Income / (loss) before income taxes | 841 | 9,385 | 1,850 | 12,076 | -16,162 | -4,086 | |||||||||||||
Income tax expense / (benefit) | - | - | - | - | -414 | -414 | |||||||||||||
Net income / (loss) | 841 | 9,385 | 1,850 | 12,076 | -15,748 | -3,672 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | - | - | - | - | -1,087 | -1,087 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | 841 | $ | 9,385 | $ | 1,850 | $ | 12,076 | $ | -14,661 | $ | -2,585 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 756 | $ | 57 | $ | - | $ | 813 | $ | 290 | $ | 1,103 | |||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 38,528 | $ | - | $ | - | $ | 38,528 | $ | - | $ | 38,528 | |||||||
Asset management | - | 19,239 | - | 19,239 | - | 19,239 | |||||||||||||
New issue and advisory | 6,418 | - | - | 6,418 | - | 6,418 | |||||||||||||
Principal transactions and other income | 542 | 2,276 | -9,486 | -6,668 | - | -6,668 | |||||||||||||
Total revenues | 45,488 | 21,515 | -9,486 | 57,517 | - | 57,517 | |||||||||||||
Total operating expenses | 53,518 | 11,523 | 319 | 65,360 | 13,261 | 78,621 | |||||||||||||
Operating income / (loss) | -8,030 | 9,992 | -9,805 | -7,843 | -13,261 | -21,104 | |||||||||||||
Income / (loss) from equity method affiliates | - | 546 | 1,282 | 1,828 | - | 1,828 | |||||||||||||
Other non-operating income / (expense) | -164 | -9 | - | -173 | -4,035 | -4,208 | |||||||||||||
Income / (loss) before income taxes | -8,194 | 10,529 | -8,523 | -6,188 | -17,296 | -23,484 | |||||||||||||
Income tax expense / (benefit) | 14 | - | - | 14 | -3,579 | -3,565 | |||||||||||||
Net income / (loss) | -8,208 | 10,529 | -8,523 | -6,202 | -13,717 | -19,919 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | -9 | - | - | -9 | -6,592 | -6,601 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | -8,199 | $ | 10,529 | $ | -8,523 | $ | -6,193 | $ | -7,125 | $ | -13,318 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 795 | $ | 317 | $ | - | $ | 1,112 | $ | 293 | $ | 1,405 | |||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 69,486 | $ | - | $ | - | $ | 69,486 | $ | - | $ | 69,486 | |||||||
Asset management | - | 23,172 | - | 23,172 | - | 23,172 | |||||||||||||
New issue and advisory | 6,021 | - | - | 6,021 | -1,000 | 5,021 | |||||||||||||
Principal transactions and other income | 166 | 894 | -3,499 | -2,439 | - | -2,439 | |||||||||||||
Total revenues | 75,673 | 24,066 | -3,499 | 96,240 | -1,000 | 95,240 | |||||||||||||
Total operating expenses | 74,595 | 8,690 | 347 | 83,632 | 11,313 | 94,945 | |||||||||||||
Operating income / (loss) | 1,078 | 15,376 | -3,846 | 12,608 | -12,313 | 295 | |||||||||||||
Income / (loss) from equity method affiliates | - | 3,309 | 1,743 | 5,052 | - | 5,052 | |||||||||||||
Other non-operating income / (expense) | -3,554 | - | - | -3,554 | -4,449 | -8,003 | |||||||||||||
Income / (loss) before income taxes | -2,476 | 18,685 | -2,103 | 14,106 | -16,762 | -2,656 | |||||||||||||
Income tax expense / (benefit) | 49 | - | - | 49 | -664 | -615 | |||||||||||||
Net income / (loss) | -2,525 | 18,685 | -2,103 | 14,057 | -16,098 | -2,041 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | -216 | - | - | -216 | -857 | -1,073 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | -2,309 | $ | 18,685 | $ | -2,103 | $ | 14,273 | $ | -15,241 | $ | -968 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 859 | $ | 17 | $ | - | $ | 876 | $ | 429 | $ | 1,305 | |||||||
(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. During the third quarter of 2012, PrinceRidge (Capital Markets business segment) entered into an intercompany engagement with CCFL (Asset Management business segment). This intercompany transaction was eliminated in the unallocated segment. | |||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Total Assets | $ | 248,881 | $ | 5,548 | $ | 28,649 | $ | 283,078 | $ | 13,009 | $ | 296,087 | |||||||
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 December 31, 2013 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Total Assets | $ | 172,526 | $ | 9,938 | $ | 26,897 | $ | 209,361 | $ | 7,689 | $ | 217,050 | |||||||
Included within total assets: | |||||||||||||||||||
Investment in equity method affiliates | $ | - | $ | -48 | $ | 17 | $ | -31 | $ | - | $ | -31 | |||||||
Goodwill (2) | $ | 7,937 | $ | 3,176 | $ | - | $ | 11,113 | $ | - | $ | 11,113 | |||||||
Intangible assets (2) | $ | 332 | $ | 151 | $ | - | $ | 483 | $ | - | $ | 483 | |||||||
(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 are allocated to the Capital Markets and Asset Management business segments as indicated in the table from above. | |||||||||||||||||||
Geographic Information | |||||||||||||||||||
The Company conducts its business activities through offices in the following locations: (1) United States; (2) United Kingdom and other; and (3) Asia. Total revenues by geographic area are summarized as follows: | |||||||||||||||||||
GEOGRAPHIC DATA | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
For the year ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Total Revenues: | |||||||||||||||||||
United States | $ | 44,991 | $ | 44,043 | $ | 78,597 | |||||||||||||
United Kingdom & Other | 10,636 | 11,178 | 16,643 | ||||||||||||||||
Asia | 123 | 2,296 | - | ||||||||||||||||
Total | $ | 55,750 | $ | 57,517 | $ | 95,240 | |||||||||||||
Long-lived assets attributable to an individual country, other than the United States, are not material. The Company no longer earns revenue in Asia effective with the sale of Star Asia Group. See note 5. | |||||||||||||||||||
Supplemental_Cash_Flow_Disclos
Supplemental Cash Flow Disclosure | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Supplemental Cash Flow Disclosure [Abstract] | ||||
Supplemental Cash Flow Disclosure | 28. SUPPLEMENTAL CASH FLOW DISCLOSURE | |||
Interest paid by the Company on its debt was $3,011, $3,170, and $4,698, for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||
The Company paid income taxes of $113, $351, and $158 for the years ended December 31, 2014, 2013, and 2012, respectively, and received income tax refunds of $105, $96, and $134 for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||
In 2014, the Company had the following significant non-cash transactions that are not reflected on the statement of cash flows: | ||||
Ÿ | 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 and the issuance of shares from the private placement. The Company recognized a net increase in additional paid-in capital of $215, a net decrease of $10 in accumulated other comprehensive income, and a decrease of $205 in non-controlling interest. See note 19. | |||
In 2013, the Company had the following significant non-cash transactions that are not reflected on the statement of cash flows: | ||||
Ÿ | 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 and the issuance of shares from the private placement. The Company recognized a net increase in additional paid-in capital of $2,764, a net decrease of $127 in accumulated other comprehensive income, and a decrease of $2,637 in non-controlling interest. See note 19. | |||
Ÿ | In connection with 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. On February 20, 2014, the Company sold its interests in the Star Asia Group, including Star Asia Manager. See note 5. | |||
In 2012, the Company had the following significant non-cash transactions that are not reflected on the statement of cash flows: | ||||
Ÿ | The Company acquired additional units of the Operating LLC pursuant to the UIS Agreement. The Company recognized a net increase in additional paid-in capital of $928, a net increase of $23 in accumulated other comprehensive loss, and a decrease of $905 in non-controlling interest. See note 19. | |||
Ÿ | The Company reclassified $6,446 from redeemable non-controlling interest to mandatorily redeemable equity interests in its consolidated balance sheets due to partnership withdrawals from PrinceRidge. See note 18. | |||
Ÿ | The Company retired 50,400 shares of Common Stock it held in treasury. The Company recognized an increase of $328 in accumulated deficit and a decrease of $328 in treasury stock. See note 19. | |||
Ÿ | The Company reclassified $4,824 from mandatorily redeemable equity interests (included as a component of accounts payable and other liabilities) to debt in its consolidated balance sheets related to the repurchase of certain mandatorily redeemable equity interests. The Company paid the debt of $4,824 in full in December 2012. See notes 17 and 18. | |||
Ÿ | The Company recorded a reclassification of $1,841 from equity method investments (component of other assets) to other investments, at fair value in the consolidated balance sheets related to the reorganization of Star Asia Opportunity II and the creation of the Star Asia Special Situations Fund. See notes 3-F, 8, 9, 15, and 29. | |||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||
Related Party Transactions | ||||||||||||||||
29 . RELATED PARTY TRANSACTIONS | ||||||||||||||||
The Company has identified the following related party transactions for the years ended December 31, 2014, 2013, and 2012. 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 Star Asia Manager and the Company | ||||||||||||||||
Star Asia Manager serves as external manager of Star Asia and Star Asia SPV (see D-1 and D-6 listed below) and the Company owned 50% of Star Asia Manager prior to March 1, 2013. Following the Star Asia Manager Repurchase Transaction, the Company acquired 100% control of Star Asia Manager and included Star Asia Manager in its consolidated financial statements. See note 4 for a description of the Star Asia Manager Repurchase Transaction. 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. On February 20, 2014, the Company sold its interest in Star Asia Manager. See note 5. | ||||||||||||||||
B. Cohen Bros. Financial, LLC (“CBF”) and EBC 2013 Family Trust (“EBC”) | ||||||||||||||||
CBF has been identified as a related party because (i) CBF is a non-controlling interest holder of the Company and (ii) CBF is wholly owned by Daniel G. Cohen, Vice Chairman of the Company’s Board of Directors and the board of managers of the Operating LLC, President and Chief Executive of the Company’s European business, and President of CCFL (formerly the Chairman and Chief Executive Officer of the Company). | ||||||||||||||||
Beginning in October 2008, the Company began receiving a monthly advisory fee for consulting services provided by the Company to CBF. The Company stopped providing these services and stopped receiving this fee as of March 31, 2012. The fee was recognized as a component of asset management revenue in the consolidated statements of operations. This fee is disclosed as management fee revenue in the tables at the end of this section. | ||||||||||||||||
In September 2013, EBC, as an assignee of CBF, made a $4,000 investment in the Company. Mr. Cohen is a trustee of EBC. The Company issued $2,400 in principal amount of the 8.0% Convertible Notes to EBC. See note E listed below and notes 4 and 17. The Company incurred interest expense on this debt, which is disclosed as part of interest expense incurred in the table at end of this section. | ||||||||||||||||
C. The Bancorp, Inc. | ||||||||||||||||
The Bancorp, Inc. (“TBBK”) is identified as a related party because TBBK’s Chairman is the Vice Chairman of the Company’s Board of Directors and of the board of managers of the Operating LLC, President and Chief Executive of the Company’s European business, and President of CCFL (formerly the Company’s Chairman and Chief Executive Officer). | ||||||||||||||||
TBBK maintained deposits for the Company in the amount of $86 and $52 as of December 31, 2014 and 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 December 31, 2014 and 2013, the Company had a repurchase agreement with TBBK as the counterparty in the amount of $46,275 and $6,445, respectively. 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 amounts of $461 and $396 for the years ended December 31, 2014 and 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. | ||||||||||||||||
During the year ended December 31, 2013, the Company’s broker-dealer operations received a new issue fee of $174 from the Bancorp Bank related to the placement of a CLO managed by a unrelated third party. | ||||||||||||||||
In December 2012, the Company purchased 2,400 shares of TBBK common stock in the open market for $26. As of December 31, 2012, the fair market value of the TBBK common stock was $26 and was included as a component of investments-trading on the Company’s consolidated balance sheets. | ||||||||||||||||
D. Investment Vehicles and Other | ||||||||||||||||
The following 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. Star Asia has been identified as a related party because in the absence of the fair value option of FASB ASC 825, Star Asia would be treated as an equity method affiliate, and because the Vice Chairman of the Company’s Board of Directors and of the board of managers of the Operating LLC, President and Chief Executive 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 February 20, 2014. As of December 31, 2013, the Company had an investment in Star Asia. The Company, through Star Asia Manager, had an asset management contract with Star Asia. Dividends received, gains or losses recognized from its investment are disclosed as part of principal transactions and other income 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. On February 20, 2014, the Company sold its interest in Star Asia. See note 5. | ||||||||||||||||
2. EuroDekania has been identified as a related party because the Vice Chairman of the Company’s Board of Directors and of the board of managers of the Operating LLC, President and Chief Executive of the Company’s European business, and President of CCFL (formerly the Chairman and Chief Executive Officer) was a member of EuroDekania’s board of directors from its inception through December 18, 2013. The Company has a management contract with and an investment in EuroDekania. Dividends received, gains or losses recognized from its investment are disclosed as part of principal transactions and other income 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. | ||||||||||||||||
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 EuroDekania. Or, the Company may purchase securities from EuroDekania and ultimately sell those securities to third parties. In either case, the Company includes the trading revenue earned (i.e. the gain or loss realized) 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. | ||||||||||||||||
3. The Deep Value GP and the Deep Value GP II have been identified as related parties because the Deep Value GPs were 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. | ||||||||||||||||
4. Deep Value (as a group) has been identified as a related party because in the absence of the fair value option of FASB ASC 825, the onshore and offshore feeder funds in which the Company had an investment would be treated as equity method affiliates of the Company. The Company had a management contract with and an investment in Deep Value. Amounts earned from its management contract are disclosed as part of management fee revenue in the tables at the end of this section. Gains or losses recognized from its investment are disclosed as part of gain / (loss) in the tables at the end of this section. The Company previously served as the investment advisor to these funds and sold these advisory contracts in March 2011. See note 5. | ||||||||||||||||
5. 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. See note 3-F. | ||||||||||||||||
6. Star Asia Opportunity 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. See note 3-F. | ||||||||||||||||
7. Star Asia Capital Management 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. See note 3-F. On February 20, 2014, the Company sold its ownership interest in the Star Asia Group including Star Asia Capital Management. See note 5. | ||||||||||||||||
8. Star Asia Opportunity II has been identified as a related party because it was an equity method investee of the Company until its reorganization in December 2012. Income or loss recognized under the equity method is disclosed in the table at the end of this section. See note 3-F. | ||||||||||||||||
9. The Star Asia Special Situations Fund has been identified as a related party because in the absence of the fair value option of FASB ASC 825, the investment the Company had in the Star Asia Special Situations Fund would be treated as an equity method affiliate of the Company. Dividends received from that investment are disclosed as part of dividend income in the tables at the end of this section. Gains and losses recognized from its investment are disclosed as part of gain / (loss) in the tables at the end of this section. On February 20, 2014, the Company sold its interest in Star Asia Special Situations Fund. See note 5. | ||||||||||||||||
10. SAA Manager serves as the external manager of the Star Asia Special Situations Fund. SAA Manager 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. See note 3-F. On February 20, 2014, the Company sold its interest in SAA Manager. See note 5. | ||||||||||||||||
11. SAP GP has been identified as a related party because the SAP GP was an equity method affiliate of the Company. Income or loss recognized under the equity method is disclosed in the table at the end of this section. See note 3-F. During the years ended December 31, 2013 and 2012, the Company did not make an investment or recognize any income or loss under the equity method related to this entity. On February 20, 2014, the Company sold its interest in SAP GP. See note 5. | ||||||||||||||||
E. Investment in IFMI by 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 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, 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 note B from above and notes 4 and 17. 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. | ||||||||||||||||
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 | ||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Management fee revenue | Net trading | Principal transactions and other income | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||
TBBK | $ | - | $ | 24 | $ | - | $ | - | $ | - | ||||||
Star Asia | 125 | - | - | - | - | |||||||||||
Star Asia Capital Management | - | - | - | 13 | - | |||||||||||
SAA Manager | - | - | - | 14 | - | |||||||||||
EuroDekania | - | - | 1,801 | - | - | |||||||||||
EBC | - | - | - | - | 224 | |||||||||||
Mead Park Capital | - | - | - | - | 547 | |||||||||||
$ | 125 | $ | 24 | $ | 1,801 | $ | 27 | $ | 771 | |||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Management fee revenue | Net trading | Principal transactions and other income | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||
TBBK | $ | - | $ | 483 | $ | - | $ | - | $ | - | ||||||
Star Asia | 2,329 | - | -13,065 | - | - | |||||||||||
Star Asia Manager (1) | - | - | - | 158 | - | |||||||||||
Star Asia SPV | - | - | - | 1,287 | - | |||||||||||
Star Asia Opportunity | - | - | - | -5 | - | |||||||||||
Star Asia Capital Management | - | - | - | 145 | - | |||||||||||
Star Asia Special Situations Fund | - | - | 152 | - | - | |||||||||||
SAA Manager | - | - | - | 255 | - | |||||||||||
EuroDekania | - | - | 1,971 | - | - | |||||||||||
Deep Value | - | - | - | -13 | - | |||||||||||
EBC | - | - | - | - | 59 | |||||||||||
Mead Park Capital | - | - | - | - | 144 | |||||||||||
Other | - | - | - | 1 | - | |||||||||||
$ | 2,329 | $ | 483 | $ | -10,942 | $ | 1,828 | $ | 203 | |||||||
(1) Beginning March 1, 2013, Star Asia Manager was consolidated by the Company. Prior to that, it was treated as an equity method investment. See note A above. | ||||||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Management fee revenue | Net trading | Principal transactions and other income | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||
CBF | $ | 64 | $ | - | $ | - | $ | - | $ | - | ||||||
TBBK | - | 156 | - | - | - | |||||||||||
Star Asia | - | - | -7,274 | - | - | |||||||||||
Star Asia Manager (1) | - | - | - | 1,101 | - | |||||||||||
Star Asia SPV | - | - | - | 1,581 | - | |||||||||||
Star Asia Opportunity | - | - | - | 544 | - | |||||||||||
Star Asia Opportunity II | -382 | - | ||||||||||||||
Star Asia Capital Management | - | - | - | 504 | - | |||||||||||
Star Asia Special Situations Fund | - | - | 662 | - | - | |||||||||||
SAA Manager | - | - | - | -8 | - | |||||||||||
EuroDekania | 139 | - | 638 | - | - | |||||||||||
Deep Value | - | - | - | 1,712 | - | |||||||||||
$ | 203 | $ | 156 | $ | -5,974 | $ | 5,052 | $ | - | |||||||
(1) Beginning March 1, 2013, Star Asia Manager was consolidated by the Company. Prior to that, it was treated as an equity method investment. See note A above. | ||||||||||||||||
The following related party transactions are non-routine and are not included in the tables above. | ||||||||||||||||
F. Additional Investment in the Star Asia Special Situations Fund | ||||||||||||||||
In December 2012, the Company made an initial investment of $1,841 in the Star Asia Special Situations Fund. During 2013, the Company made an additional investment of $302 in the Star Asia Special Situations Fund. See notes 3-F, 5, 8, 9, and 15. | ||||||||||||||||
G. Resource Securities, Inc. (formerly known as Chadwick Securities, Inc.), a registered broker-dealer subsidiary of Resource America, Inc. (“REXI”) | ||||||||||||||||
REXI is a publicly traded specialized asset management company in the commercial finance, real estate, and financial fund management sectors. It has been identified as a related party because (i) the Chairman of the board of REXI is the father of the Vice Chairman of the Company’s Board of Directors and of the board of managers of the Operating LLC, President and Chief Executive of the Company’s European business, and President of CCFL (formerly the Company’s Chairman and Chief Executive Officer). In September 2012, the Company paid a fee of $6 to REXI for its services as the introducing agent for a transaction in which the Company bought back $1,177 principal amount of subordinated notes payable from an unrelated third party. The $6 fee was treated as a reduction to the gain recognized on the repurchase of debt, which was included as a component of non-operating income / (expense) in the Company’s consolidated statements of operations for the year ended December 31, 2012. | ||||||||||||||||
H. 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. | ||||||||||||||||
I. Purchase of IFMI Common Stock from Vice Chairman | ||||||||||||||||
During the third quarter of 2014, the Company repurchased 100,000 shares of the Company’s Common Stock at $2.07 per share from the Company’s Vice Chairman, Daniel G. Cohen. The Company retired these shares. | ||||||||||||||||
During the fourth quarter of 2014, the Company repurchased 100,000 shares of the Company’s Common Stock at $1.77 per share the Company’s Vice Chairman, Daniel G. Cohen. The Company retired these shares. | ||||||||||||||||
J. Sale of European Operations | ||||||||||||||||
On August 19, 2014, the Operating LLC entered into a definitive agreement to sell its European operations to C&Co Europe Acquisition LLC, an entity controlled 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 of the Company’s European business, and the President of CCFL. See note 5. | ||||||||||||||||
Due_From_Due_To_Related_Partie
Due From / Due To Related Parties | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Due From / Due To Related Parties [Abstract] | |||||||
Due From / Due To Related Parties | 30. 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 29 and final settlement of those transactions in cash. All amounts are primarily non-interest bearing. | |||||||
DUE FROM/DUE TO RELATED PARTIES | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
EuroDekania | $ | - | $ | 18 | |||
Star Asia and related entities (1) | - | 450 | |||||
CBF | - | 4 | |||||
Employees & other | 552 | 411 | |||||
Due from Related Parties | $ | 552 | $ | 883 | |||
(1) Related entities include Star Asia Capital Management and SAA Manager. | |||||||
Schedule_I_Condensed_Financial
Schedule I Condensed Financial Information of Registrant | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||
Condensed Financial Information of Registrant | SCHEDULE I | |||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. | ||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. (PARENT COMPANY) | ||||||||||
Balance Sheet | ||||||||||
(Dollars in Thousands) | ||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||
Assets | ||||||||||
Cash | $ | 8 | $ | 7 | ||||||
Investment in IFMI, LLC | 79,816 | 85,401 | ||||||||
Other assets | 555 | 666 | ||||||||
Total assets | $ | 80,379 | $ | 86,074 | ||||||
Liabilities | ||||||||||
Accrued interest and other liabilities | $ | 317 | $ | 375 | ||||||
Deferred income taxes | 3,888 | 4,530 | ||||||||
Debt | 27,939 | 29,674 | ||||||||
Total liabilities | 32,144 | 34,579 | ||||||||
Stockholders’ Equity | ||||||||||
Preferred Stock: | 5 | 5 | ||||||||
Common Stock | 15 | 14 | ||||||||
Additional paid-in capital | 74,604 | 73,866 | ||||||||
Accumulated deficit | -25,617 | -21,754 | ||||||||
Accumulated other comprehensive loss | -772 | -636 | ||||||||
Total stockholders’ equity | 48,235 | 51,495 | ||||||||
Total liabilities and stockholders’ equity | $ | 80,379 | $ | 86,074 | ||||||
See accompanying notes to condensed financial statements. | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. | ||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. (PARENT COMPANY) | ||||||||||
Statement of Operations | ||||||||||
(Dollars in Thousands) | ||||||||||
For the Year Ended December 31, 2014 | For the Year Ended December 31, 2013 | For the Year Ended December 31, 2012 | ||||||||
Revenues | ||||||||||
Equity in undistributed earnings / (loss) from IFMI, LLC | $ | 1,174 | $ | -11,502 | $ | 2,666 | ||||
Total revenues | 1,174 | -11,502 | 2,666 | |||||||
Operating income / (loss) | 1,174 | -11,502 | 2,666 | |||||||
Non-operating expense | ||||||||||
Interest expense | -4,401 | -4,001 | -4,397 | |||||||
Income / (loss) before income taxes | -3,227 | -15,503 | -1,731 | |||||||
Income tax (benefit) / expense | -642 | -2,185 | -763 | |||||||
Net income / (loss) | $ | -2,585 | $ | -13,318 | $ | -968 | ||||
See accompanying notes to condensed financial statements. | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. | ||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. (PARENT COMPANY) | ||||||||||
Statement of Cash Flows | ||||||||||
(Dollars in Thousands) | ||||||||||
For the Year Ended December 31, 2014 | For the Year Ended December 31, 2013 | For the Year Ended December 31, 2012 | ||||||||
Operating activities | ||||||||||
Net income / (loss) | $ | -2,585 | $ | -13,318 | $ | -968 | ||||
Adjustments to reconcile net income / (loss) to net cash provided by / (used) in operating activities: | ||||||||||
Equity in undistributed earnings / (loss) from IFMI, LLC | -1,174 | 11,502 | -2,666 | |||||||
Distributions from / (contributions to) IFMI, LLC | 7,810 | -3,653 | 15,943 | |||||||
Other (income) / expense | - | 15 | -3 | |||||||
Amortization of discount of debt | 1,380 | 906 | 189 | |||||||
(Increase) / decrease in other assets | 111 | 32 | 246 | |||||||
Increase / (decrease) in accounts payable and other liabilities | -58 | 74 | -330 | |||||||
Increase / (decrease) in deferred income taxes | -642 | -2,144 | -826 | |||||||
Net cash provided by / (used in) operating activities | 4,842 | -6,586 | 11,585 | |||||||
Financing activities | ||||||||||
Repurchase and repayment of debt | -3,115 | -5,000 | -10,357 | |||||||
Issuance of debt | - | 8,248 | - | |||||||
Payments for deferred financing costs | - | -670 | - | |||||||
Cash used to net share settle equity awards | -64 | -110 | -135 | |||||||
Proceeds from issuance of stock, net | - | 5,051 | - | |||||||
Repurchase of stock | -384 | - | - | |||||||
Dividends paid to stockholders | -1,278 | -1,066 | -953 | |||||||
Net cash provided by / (used in) financing activities | -4,841 | 6,453 | -11,445 | |||||||
Net increase (decrease) in cash and cash equivalents | 1 | -133 | 140 | |||||||
Cash and cash equivalents, beginning of period | 7 | 140 | - | |||||||
Cash and cash equivalents, end of period | $ | 8 | $ | 7 | $ | 140 | ||||
See accompanying notes to condensed financial statements. | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. | ||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. (PARENT COMPANY) | ||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | ||||||||||
(Dollars in Thousands) | ||||||||||
The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and related notes of Institutional Financial Markets, Inc. Certain prior period amounts have been reclassified to conform to the current period presentation. | ||||||||||
The Company paid or received cash distributions to / from IFMI, LLC as disclosed above in the statements of cash flow. | ||||||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||
Principles of Consolidation | A . Principles of Consolidation | |||||||||
The consolidated financial statements reflect the accounts of IFMI and its wholly and majority owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||
Use of Estimates | B . Use of Estimates | |||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make assumptions and estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||
Cash And Cash Equivalents | C . Cash and Cash Equivalents | |||||||||
Cash and cash equivalents consist of cash and short-term, highly liquid investments that have original maturities of three months or less. Most cash and cash equivalents are in the form of short-term investments and are not held in federally insured bank accounts. | ||||||||||
Adoption Of New Accounting Standards | D. Adoption of New Accounting Standards | |||||||||
In July 2012, the FASB issued ASU No. 2012-02, Intangibles — Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”), which provides an option for companies to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If a company concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the company is not required to take further action. However, if a company concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount in accordance with Subtopic 350-30. A company also has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative assessment in any subsequent period. The Company’s adoption of the provisions of ASU 2012-02 effective January 1, 2013 did not have an effect on the Company’s consolidated financial position, results of operations, or cash flows. | ||||||||||
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, results of operations, cash flows, or related disclosures. | ||||||||||
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 position, results of operations, cash flows, or related 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, results of operations, cash flows, or related disclosures. | ||||||||||
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 financial position, results of operations, cash flows, or related disclosures. | ||||||||||
Financial Instruments | E. Financial Instruments | |||||||||
The Company accounts for its investment securities at fair value under various accounting literature including FASB Accounting Standards Codification (“ASC”) 320, Investments — Debt and Equity Securities (“FASB ASC 320”), pertaining to investments in debt and equity securities and the fair value option of financial instruments in FASB ASC 825, Financial Instruments (“FASB ASC 825”). The Company also accounts for certain assets at fair value under the applicable industry guidance, namely FASB ASC 946, Financial Services-Investment Companies (“FASB ASC 946”). | ||||||||||
Certain of the Company’s assets and liabilities are required to be measured at fair value. For those assets and liabilities, the Company determines fair value according to the fair value measurement provisions included in FASB ASC 820, Fair Value Measurements and Disclosures (“FASB ASC 820”). FASB ASC 820 establishes a single authoritative definition of fair value, sets out a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and requires additional disclosures about fair value measurements. The definition of fair value focuses on the price that would be received to sell the asset or paid to transfer the liability between market participants at the measurement date (an exit price). An exit price valuation will include margins for risk even if they are not observable. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels (“level 1, 2 and 3”). | ||||||||||
In addition the Company has elected to account for certain of its other financial assets at fair value under the fair value option provisions included in FASB ASC 825. This standard provides companies the option of reporting certain instruments at fair value (with changes in fair value recognized in the statement of operations) that were previously either carried at cost, not recognized on the financial statements, or carried at fair value with changes in fair value recognized as a component of equity rather than in the statement of operations. The election is made on an instrument-by-instrument basis and is irrevocable. | ||||||||||
See note 9 for the information regarding the effects of applying the fair value option to the Company’s financial instruments on the Company’s consolidated financial statements for the year ended December 31, 2014. | ||||||||||
The changes in fair value (realized and unrealized gains and losses) of these instruments are recorded in principal transactions and other income in the consolidated statements of operations. See notes 8 and 9 for further information. | ||||||||||
FASB ASC 320 requires that the Company classify its investments as either (i) held to maturity, (ii) available for sale, or (iii) trading. This determination is made at the time a security is purchased. FASB ASC 320 requires that both trading and available for sale securities are to be carried at fair value. However, in the case of trading assets, both unrealized and realized gains and losses are recorded in the statement of operations. For available for sale securities, only realized gains and losses are recognized in the statement of operations while unrealized gains and losses are recognized as a component of other comprehensive income. | ||||||||||
In all the periods presented, all securities were either classified as trading or available for sale. No securities were classified as held to maturity. Furthermore, the Company elected the fair value option, in accordance with FASB ASC 825, for all securities that were classified as available for sale. Therefore, for all periods presented, all securities owned by the Company were accounted for at fair value with unrealized and realized gains and losses recorded in the statement of operations. | ||||||||||
All securities that are classified as trading are included in investments-trading. However, when the Company acquires an investment that is classified as available for sale, but for which the Company elected the fair value option under FASB ASC 825, the investment is classified as other investments, at fair value. | ||||||||||
The determination of 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, when independent broker quotations or market price quotations from third party pricing services are unavailable, valuation models prepared by the Company’s management. These models include estimates and the valuations derived from them could differ materially from amounts realizable in an open market exchange. | ||||||||||
Also, from time to time, the Company may be deemed to be the primary beneficiary of a variable interest entity and may be required to consolidate it and its investments under the provisions included in FASB ASC 810, Consolidation (“FASB ASC 810”). See notes 3-J and 16. In those cases, the Company’s classification of the assets as trading, other investments, at fair value, available for sale, or held to maturity will depend on the intended use of the investment by the variable interest entity. | ||||||||||
Investments-trading | ||||||||||
Unrealized and realized gains and losses on securities classified as investments-trading are recorded in net trading in the consolidated statements of operations. | ||||||||||
Other Investments, at fair value | ||||||||||
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. | ||||||||||
Trading Securities Sold, Not Yet Purchased | ||||||||||
Trading securities sold, not yet purchased represent obligations of the Company to deliver the specified security at the contracted price, thereby creating a liability to purchase the security in the market at prevailing prices. The Company is obligated to acquire the securities sold short at prevailing market prices, which may exceed the amount reflected on the consolidated balance sheets. Unrealized and realized gains and losses on trading securities sold, not yet purchased are recorded in net trading in the consolidated statement of operations. See notes 8 and 9. | ||||||||||
Investment Vehicles | F. Investment Vehicles | |||||||||
As of December 31, 2014 and 2013, the Company had investments in several Investment Vehicles. When making an investment in an Investment Vehicle, the Company must determine the appropriate method of accounting for the investment. In most cases, the Company will either (i) consolidate the Investment Vehicle, (ii) account for its investment under the equity method of accounting or (iii) account for its investment as a marketable equity security under the provisions of FASB ASC 320. In the case of (ii) and (iii), the Company may account for its investment at fair value under the fair value option election included in FASB ASC 825. | ||||||||||
The Company may treat an investment in equity of an entity under the equity method of accounting when it has significant influence (as described in the FASB Codification) in the investee. In addition, the Company may elect to account for its investment at fair value under the fair value option included in FASB ASC 825. | ||||||||||
The Company consolidates an investment when it has control of the investee. In general, control is interpreted as owning in excess of 50% of the voting interest of an investee. However, this percentage is only a guideline and the Company considers the unique facts and circumstances of each investment. In addition, if the Company determines the investee is a variable interest entity and the Company is the primary beneficiary, the Company will consolidate the investee under the requirements for the consolidation of variable interest entities included in FASB ASC 810. | ||||||||||
If the Company determines that it is not required to consolidate an investee and does not have significant influence over the investee, it will account for the investment as a marketable equity security under the provisions included in FASB ASC 320. | ||||||||||
In general, if the investment was deemed to be an equity method investment and fair value was readily determinable, the Company made the fair value election. In all cases, if the investment was deemed to be a marketable equity security, the Company made the fair value election. | ||||||||||
The following discussion describes the Company’s accounting policy as it pertains to certain Investment Vehicles, the associated management contracts, and other related transactions. All of the Investment Vehicles described below are considered related parties of the Company. See note 29. | ||||||||||
Star Asia Related Entities | ||||||||||
For the three years ended December 31, 2014, the Company had an investment in several entities that either (i) invest in securities or real estate in Japan or (ii) provide management services to entities that invest in securities or real estate in Japan. | ||||||||||
On February 20, 2014, the Company completed the sale of the Company’s ownership interests in all of the Star Asia related entities except for its remaining interest in Star Asia Opportunity. Star Asia Opportunity was liquidated and made its final distribution in 2014. | ||||||||||
The combination of interests sold on February 20, 2014 is referred to as the “Star Asia Group.” The Star Asia Group included the Company’s interest in the following entities (each defined individually below): Star Asia, Star Asia Manager, Star Asia Special Situations Fund, SAA Manager, SAP GP, and Star Asia Capital Management. | ||||||||||
See notes 5 and 15. | ||||||||||
Star Asia Finance, Limited (“Star Asia”) | ||||||||||
The Company had an investment in Star Asia. Star Asia invests primarily in Asian commercial real estate structured finance products, including CMBS, corporate debt of REITs and real estate operating companies, B notes, mezzanine loans, and other commercial real estate fixed income investments. | ||||||||||
The Company held no interest in Star Asia as of December 31, 2014. The Company held a 28% interest in Star Asia as of December 31, 2013. | ||||||||||
The Company sold its interest in this entity on February 20, 2014. From January 1, 2012 until its sale on February 20, 2014, the Company accounted for its investment in Star Asia as an equity method investment for which it made the fair value election. Changes in fair value are recorded in earnings under the fair value option provisions included in FASB ASC 825. Because it was accounted for at fair value, it was included as a component of other investments, at fair value in the consolidated balance sheet. See notes 3-E, 8 and 9 for further information. | ||||||||||
Star Asia Management, LTD (“Star Asia Manager”) | ||||||||||
The Company had an investment in Star Asia Manager. Star Asia Manager serves as external manager of Star Asia and Star Asia SPV (see below). For the period from January 1, 2012 to March 1, 2013, the Company owned a 50% interest in Star Asia Manager and accounted for its investment under the equity method with no fair value option election. From March 1, 2013 until its sale on February 20, 2014, the Company owned 100% of Star Asia Manager and included it in its consolidated statements. The Company held no interest in Star Asia Manager as of December 31, 2014. | ||||||||||
Star Asia SPV | ||||||||||
The Company had an investment in Star Asia SPV. Star Asia SPV held investments in Asian commercial real estate. During the period from January 1, 2012 until its final distribution in April 2013, the Company accounted for its interest in Star Asia SPV under the equity method with no fair value option election. The Company held no interest in Star Asia SPV as of December 31, 2014 and 2013. | ||||||||||
Star Asia Opportunity, LLC (“Star Asia Opportunity”) | ||||||||||
The Company had an investment in Star Asia Opportunity. Star Asia Opportunity held investments in seven real estate properties in Tokyo, Japan. For the period from January 1, 2012 until its final distribution in May 2014, the Company accounted for its interest in Star Asia Opportunity under the equity method with no fair value election. The Company held no interest in Star Asia Opportunity as of December 31, 2014. The Company held a 28% interest in Star Asia Opportunity as of December 31, 2013. | ||||||||||
Star Asia Opportunity II, LLC (“Star Asia Opportunity II”) | ||||||||||
The Company had an investment in Star Asia Opportunity II. Star Asia Opportunity II held interests in real estate property in Japan. For the period from January 1, 2012 to December 20, 2012, the Company accounted for its interest in Star Asia Opportunity II under the equity method with no fair value election. | ||||||||||
On December 20, 2012, Star Asia Opportunity II completed a reorganization whereby its assets were contributed into a subsidiary of the Star Asia Special Situations Fund (see below). The net effect of this reorganization to the Company was that the Company exchanged its ownership interest in Star Asia Opportunity II for cash and an interest in the Star Asia Special Situations Fund. See note 15. The Company held no interest in Star Asia Opportunity II as of December 31, 2014 and 2013. | ||||||||||
Star Asia Capital Management LLC (“Star Asia Capital Management”) | ||||||||||
The Company had an investment in Star Asia Capital Management. Star Asia Capital Management served as the external manager of Star Asia Opportunity. It also served as external manager of Star Asia Opportunity II prior to December 20, 2012. The Company sold its interest in this entity on February 20, 2014. From January 1, 2012 until its sale on February 20, 2014, the Company accounted for its interest in Star Asia Capital Management under the equity method with no fair value election. The Company held no interest in Star Asia Capital Management as of December 31, 2014. The Company held a 33% interest in Star Asia Capital Management as of December 31, 2013. | ||||||||||
Star Asia Japan Special Situations LP (“Star Asia Special Situations Fund”) | ||||||||||
The Company had an investment in Star Asia Special Situations Fund. The Star Asia Special Situations Fund is an investment fund that primarily invests in real estate and securities backed by real estate in Japan. The Company sold its interest in this entity on February 20, 2014. From the Company’s initial investment in December 2012 until its sale on February 20, 2014, the Company accounted for this investment under the equity method of accounting. The Company elected to carry its investment in the Star Asia Special Situations Fund at fair value with changes in fair value recorded in earnings under the fair value option provisions included in FASB ASC 825. Because it is accounted for at fair value, it is included as a component of other investments, at fair value in the consolidated balance sheet. The Company held no interest in Star Asia Special Situations Fund as of December 31, 2014. The Company held a 2% interest in Star Asia Special Situations Fund as of December 31, 2013. | ||||||||||
Star Asia Advisors LTD (“SAA Manager”) | ||||||||||
The Company had an investment in SAA Manager. SAA Manager serves as the external manager of the Star Asia Special Situations Fund. The Company sold its interest in this entity on February 20, 2014. From its initial investment in December 2012 until its sale on February 20, 2014, the Company accounted for its interest in SAA Manager under the equity method of accounting with no fair value election. The Company held no interest in SAA Manager as of December 31, 2014. The Company held a 33% interest in SAA Manager as of December 31, 2013. | ||||||||||
Star Asia Partners LTD (“SAP GP”) | ||||||||||
The Company had an investment in SAP GP. SAP GP serves as the general partner for the Star Asia Special Situations Fund. The Company sold its interest in this entity on February 20, 2014. From its initial investment in December 2012 until its sale on February 20, 2014, the Company accounted for its interest in SAP GP under the equity method of accounting with no fair value election. The Company held no interest in SAP GP as of December 31, 2014. The Company held a 33% interest in SAP GP as of December 31, 2013. | ||||||||||
EuroDekania Limited and EuroDekania (Cayman) Ltd. (“EuroDekania”) | ||||||||||
The Company has an investment in, and serves as external manager, of EuroDekania. 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 U.K. Pounds Sterling. | ||||||||||
As of December 31, 2014 and 2013, the Company directly owned approximately 17% of EuroDekania’s outstanding shares. The Company accounts for its investment in EuroDekania as a marketable equity security classified as available for sale for which the fair value option was elected effective January 1, 2008. Changes in fair value are recorded in earnings under the fair value option provisions included in FASB ASC 825. See notes 3-E, 8 and 9 for further information. The Company also serves as external manager of EuroDekania. See note 5 regarding sale of European operations which includes the management contract for EuroDekania but excludes the Company’s investment in EuroDekania. | ||||||||||
Tiptree Financial Partners, L.P. (“Tiptree”) | ||||||||||
The Company has an investment in Tiptree. Tiptree is a diversified holding company. As of December 31, 2014 and 2013, the Company owned approximately 1% of Tiptree. | ||||||||||
During 2013, Tiptree completed a transaction with its publicly-traded, majority-owned subsidiary, Care Investment Trust Inc., which combined their businesses into a single operating company. In connection with the closing of this transaction, the company, formerly known as Care Investment Trust Inc., changed its name to “Tiptree Financial Inc.” Tiptree Financial Inc. (“Tiptree Inc.”) (NASDAQ: TIPT), a Maryland corporation, is a diversified financial services holding company that was organized in 2007, and primarily focuses on the acquisition of majority control equity interests in financial services businesses. | ||||||||||
For the period from January 1, 2012 until December 31, 2014, the Company accounted for its investment in Tiptree under the cost method of accounting. However, the Company elected to carry its investment at fair value with changes in fair value recorded in earnings under the fair value option provisions included in FASB ASC 825. Because it is accounted for at fair value, it is included as a component of other investments, at fair value in the consolidated balance sheet. See notes 3-E, 8 and 9 for further information. | ||||||||||
Derivative Financial Instruments | G. 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 its 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 as a 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 sensitive investments; and (iii) arising from the Company’s facilitation of mortgage-backed trading. Derivatives entered into by the Company may include (i) foreign currency forward contracts; (ii) EuroDollar futures; (iii) purchase and sale agreements of TBAs; and (iv) other extended settlement trades. | ||||||||||
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. From January 1, 2012 until December 31, 2014, all TBA transactions entered into by the Company have been accounted for as derivatives. The settlement of these transactions is not expected to have a material effect on the Company’s consolidated financial statements. | ||||||||||
In addition to TBAs as part of the Company’s broker-dealer operations, the Company may from time to time enter into other securities or loan trades that do not settle within the normal securities settlement period. In those cases, the purchase or sale of the security or loan is not recorded until the settlement date. However, from the trade date until the settlement date, the Company’s interest in the security is accounted for as a derivative as either a forward purchase commitment or forward sale commitment. | ||||||||||
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. See note 10. | ||||||||||
The Company does not offset the fair value of derivatives form the right to reclaim or the obligation to return collateral as allowed for in ASC 815. | ||||||||||
Furniture, Equipment, and Leasehold Improvements, Net | H. Furniture, Equipment, and Leasehold Improvements, Net | |||||||||
Furniture, equipment, and leasehold improvements are stated at cost, less accumulated depreciation and amortization, and are included as a component of other assets in the consolidated balance sheets. Furniture and equipment are depreciated on a straight line basis over their estimated useful life of 3 to 5 years. Leasehold improvements are amortized over the lesser of their useful life or lease term, which generally ranges from 5 to 10 years. | ||||||||||
Goodwill and Intangible Assets with Indefinite Lives | I. Goodwill and Intangible Assets with Indefinite Lives | |||||||||
Goodwill represents the amount of the purchase price in excess of the fair value assigned to the individual assets acquired and liabilities assumed in various acquisitions completed by the Company. See note 4 and note 12. In accordance with FASB ASC 350, Intangibles — Goodwill and Other (“FASB ASC 350”), goodwill and intangible assets deemed to have indefinite lives are not amortized to expense but rather are analyzed for impairment. | ||||||||||
The Company measures its goodwill for 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 goodwill impairment test two-step process requires management to make judgments in determining what assumptions to use in the calculation. The first step in the process is to identify potential goodwill impairment by comparing the fair value of the reporting unit to its carrying value. If the carrying value is less than fair value, the Company would complete step two in the impairment review process, which measures the amount of goodwill impairment. | ||||||||||
The Company includes intangible assets comprised primarily of its broker-dealer licenses in other assets on its consolidated balance sheets that it considers to have indefinite useful lives. The Company reviews these assets for impairment on an annual basis. | ||||||||||
Variable Interest Entities | J. Variable Interest Entities | |||||||||
FASB ASC 810, Consolidation (“FASB ASC 810”), contains the guidance surrounding the definition of variable interest entities (“VIEs”), the definition of variable interests, 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 has included the required disclosures for VIEs in its consolidated financial statements for the year ended December 31, 2014. See note 16 for further details. | ||||||||||
Collateralized Securities Transactions | K . Collateralized Securities Transactions | |||||||||
The Company may enter into transactions involving purchases of securities under agreements to resell (“reverse repurchase agreements” or “receivables under resale agreements”) or sales of securities under agreements to repurchase (“repurchase agreements”) that 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. See note 11. | ||||||||||
Revenue Recognition | L . Revenue Recognition | |||||||||
Net trading | ||||||||||
Net trading includes: (i) all gains, losses, and income (interest and dividend) from securities classified as investments-trading and trading securities sold, not yet purchased; (ii) interest income and expense from collateralized securities transactions; and (iii) commissions and riskless trading profits. Riskless trades are transacted through the Company’s proprietary account with a customer order in hand, resulting in little or no market risk to the Company. Transactions that settle in the regular way are recognized on a trade date basis. Extended settlement transactions are recognized on a settlement date basis. The investments classified as trading are carried at fair value. The determination of fair value is based on quoted market prices of an active exchange, independent broker market quotations, market price quotations from third party pricing services or, when independent broker quotations or market price quotations from third party pricing services are unavailable, valuation models prepared by the Company’s management. The models include estimates, and the valuations derived from them could differ materially from amounts realizable in an open market exchange. Net trading is reduced by interest expense which is directly incurred to purchase income generating assets related to trading activities such as margin interest. Such interest expense is recorded on an accrual basis. | ||||||||||
Asset management | ||||||||||
Asset management revenue consists of CDO asset management fees, fees earned for management of the Company’s permanent capital vehicles and investment funds, fees earned under a service arrangement with another CDO asset manager, and other asset management fees. CDO asset management fees are earned for providing ongoing asset management services to the trust. In general, the Company earns a senior asset management fee, a subordinated asset management fee, and an incentive asset management fee. | ||||||||||
The senior asset management fee is generally senior to all the securities in the CDO capital structure and is recognized on a monthly basis as services are performed. The senior asset management fee is generally paid on a quarterly basis. | ||||||||||
The subordinated asset management fee is an additional payment for the same services but has a lower priority in the CDO cash flows. If the trust experiences a certain level of asset defaults, these fees may not be paid. There is no recovery by the trust of previously paid subordinated asset management fees. It is the Company’s policy to recognize these fees on a monthly basis as services are performed. The subordinated asset management fee is generally paid on a quarterly basis. However, if the Company determines that the subordinated asset management fee will not be paid (which generally occurs on the quarterly payment date), the Company will stop recognizing additional subordinated asset management fees on that particular trust and will reverse any subordinated asset management fees that are accrued and unpaid. The Company will begin accruing the subordinated asset management fee again if payment resumes and, in management’s estimate, continued payment is reasonably assured. If payment were to resume but the Company was unsure of continued payment, it would recognize the subordinated asset management fee as payments were received and would not accrue such fees on a monthly basis. | ||||||||||
The incentive management fee is an additional payment, made typically after five to seven years of the life of a CDO, which is based on the clearance of an accumulated cash return on investment (“Hurdle Return”) received by the most junior CDO securities holders. It is an incentive for the Company to perform in its role as asset manager by minimizing defaults and maximizing recoveries. The incentive management fee is not ultimately determined or payable until the achievement of the Hurdle Return by the most junior CDO securities holders. The Company does not recognize incentive fee revenue until the Hurdle Return is achieved and the amount of the incentive management fee is determinable and payment is reasonably assured. | ||||||||||
Other asset management fees represents fees earned for the base and incentive management of various other Investment Vehicles that the Company manages. See note 3-F. | ||||||||||
New issue and advisory | ||||||||||
New issue and advisory revenue includes: (i) origination fees for corporate debt issues originated by the Company; (ii) revenue from advisory services; and (iii) new issue revenue associated with arranging the issuance of and placing newly created financial instruments. New issue and advisory revenue is recognized when all services have been provided and payment is earned. | ||||||||||
Principal transactions and other income | ||||||||||
Principal transactions include all gains, losses, and income (interest and dividend) from financial instruments classified as other investments, at fair value in the consolidated balance sheets. | ||||||||||
The investments classified as other investments, at fair value are carried at fair value. The determination of fair value is based on quoted market prices of an active exchange, independent broker market quotations, market price quotations from third party pricing services, or, when independent broker quotations or market price quotations from third party pricing services are unavailable, valuation models prepared by the Company’s management. These models include estimates, and the valuations derived from them could differ materially from amounts realizable in an open market exchange. Dividend income is recognized on the ex-dividend date. | ||||||||||
Other income / (loss) includes foreign currency gains and losses, interest earned on cash and cash equivalents, and other miscellaneous income. | ||||||||||
Interest Expense, net | M. Interest Expense, net | |||||||||
Interest expense incurred other than interest income and expense included as a component of net trading (described in 3-L above) is recorded on an accrual basis and presented in the consolidated statements of operations as a separate non-operating expense. See notes 17 and 18. | ||||||||||
Leases | N. Leases | |||||||||
The Company is a tenant pursuant to several commercial office leases. All of the Company’s leases are currently treated as operating leases. The Company records rent expense on a straight-line basis taking into account minimum rent escalations included in each lease. Any rent expense recorded in excess of amounts currently paid is recorded as deferred rent and included as a component of accounts payable and other liabilities in the consolidated balance sheets. | ||||||||||
Redeemable Non-Controlling Interest | O. Redeemable Non-Controlling Interest | |||||||||
The redeemable non-controlling interest represented the equity interests of PrinceRidge that were not owned by the Company. The members of PrinceRidge had the right to withdraw from PrinceRidge and require PrinceRidge to redeem the interests for cash over a contractual payment period. | ||||||||||
The capital account of a member who had not withdrawn was treated as a conditionally redeemable equity interest. As such, the Company accounted for these interests as temporary equity under Accounting Series Release 268 (“ASR 268”). These interests were shown outside of the permanent equity of IFMI in its consolidated balance sheet as redeemable non-controlling interest. | ||||||||||
The capital account of a member who had withdrawn was treated as a mandatorily redeemable equity interest. As such, the Company accounted for these interests as liabilities as a component of accounts payable and other liabilities in the consolidated balance sheets. Upon notification of withdrawal, the Company would reclassify the member’s equity interest form temporary equity to accounts payable and other liabilities. During the period from notification of withdrawal until final repayment, the member continued to participate in earnings and losses of PrinceRidge. Any earnings allocated to the member that increased the amount owed to the member were treated as interest expense. Any losses allocated to the member that reduced the amount owed to the member were treated as interest income. | ||||||||||
During 2013, the Company acquired all of the outstanding equity interests of PrinceRidge. As of December 31, 2014 and 2013, the Company owned 100% of PrinceRidge. See note 18 | ||||||||||
Non-Controlling Interest | P. Non-Controlling Interest | |||||||||
Subsequent to the consummation of the Merger on December 16, 2009, member interests in the Operating LLC, other than the interests held by the Company, are treated as a non-controlling interest. As of December 31, 2014 and 2013, the Company directly owned approximately 73.8% and 73.2%, respectively, of the Operating LLC. See note 1. | ||||||||||
Equity-Based Compensation | Q. Equity-Based Compensation | |||||||||
The Company accounts for equity-based compensation issued to its employees using the fair value based methodology prescribed by the provisions related to share-based payments included in FASB ASC 718, Compensation-Stock Compensation (“FASB ASC 718”). Through the periods presented herein, the Company has issued the following types of instruments: (i) “Restricted Units” that include both actual membership interests of the Operating LLC or interests that represent the right to receive common shares of IFMI, both of which may be subject to certain restrictions; (ii) “Restricted Stock” that are shares of IFMI’s Common Stock; and (iii) stock options of IFMI. | ||||||||||
When issuing equity compensation, the Company first determines the fair value of the Restricted Units or Restricted Stock or stock options granted. Once the fair value of the equity-based awards is determined, the Company determines whether the grants qualify for liability or equity treatment. The individual rights of the equity grants are the determining factors of the appropriate treatment (liability or equity). In general terms, if the equity-based awards granted have certain features (like put or cash settlement options) that give employees the right to redeem the grants for cash instead of equity of the Company, the grants will require liability treatment. Otherwise, equity treatment is generally appropriate. | ||||||||||
If the grants qualify for equity treatment, the value of the grant is recorded as an expense as part of compensation and benefits in the consolidated statements of operations. The expense is recorded ratably over the service period as defined in FASB ASC 718, which is generally the vesting period. The offsetting entry is to stockholders’ equity or non-controlling interest. In the case of grants that qualify for equity treatment, compensation expense is fixed on the date of grant. The only subsequent adjustments made would be to account for differences between actual forfeitures of grants when an employee leaves the Company and initial estimate of forfeitures. | ||||||||||
If the grants were to qualify for liability treatment, the treatment is the same as above except that the offsetting entry is to liability for equity compensation. In addition, in the case of grants that qualify for liability treatment, the Company would adjust the total compensation and the liability for equity compensation to account for subsequent changes in fair value as well as forfeitures as described in the preceding paragraph. | ||||||||||
From time to time, the Company has issued equity to non-employees as compensation for services. The Company follows the provisions of FASB ASC 505-50, Equity-Based Payments to Non Employees (“FASB ASC 505-50”). In those cases, the accounting treatment is materially the same as described for employees except that the fair value of the grant is determined at the earlier of (i) the performance commitment date; or (ii) the actual completion date of services. FASB ASC 505-50 describes the performance commitment date as the date when performance by the non-employee is probable because of sufficiently large disincentives in the event of nonperformance. If the sole remedy for the non-employee’s lack of performance is either the non-employee’s forfeiture of the equity instruments or the entity’s ability to sue the non-employee, those remedies should not, by themselves, be considered sufficiently large disincentives to nonperformance. When the Company has issued non employees grants, generally it has determined that the measurement date is the actual date of completion of services, which in the Company’s case, is the vesting date of the underlying grant. | ||||||||||
Accounting for Income Taxes | R. Accounting for Income Taxes | |||||||||
The Company’s majority owned subsidiary, the Operating LLC, is treated as a pass-through entity for U.S. federal income tax purposes and in most of the states in which it does business. It is, however, subject to entity level income taxes in the United Kingdom, Spain, France, New York City, Pennsylvania, Philadelphia, and Illinois. Beginning on April 1, 2006, the Company qualified for Keystone Opportunity Improvement Zone (“KOZ”) benefits, which exempts the Operating LLC and its members from Philadelphia and Pennsylvania state income and capital stock franchise tax liabilities. The Company’s current lease in Philadelphia will expire on April 30, 2016. However, assuming the Company extends its lease, it will be entitled to KOZ benefits through December 31, 2018. | ||||||||||
For tax purposes, AFN contributed its assets and certain of its liabilities to Cohen Brothers in exchange for an interest in Cohen Brothers on December 16, 2009. AFN was organized and had been operated as a REIT for United States federal income tax purposes and therefore was not subject to U.S. federal income tax to the extent of its distributions to stockholders and as long as certain asset, income, distribution, and share ownership tests were met. Effective as of January 1, 2010, the Company ceased to qualify as a REIT and is instead treated as a C corporation for United States federal income tax purposes. | ||||||||||
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the U.S. GAAP and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||||||||||
The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such a determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial operations. In the event the Company were to determine that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance that would reduce the provision for income taxes. | ||||||||||
The Company’s policy is to record penalties and interest as a component of provision for income taxes in the consolidated statements of operations. | ||||||||||
Other Comprehensive Income / (Loss) | S. Other Comprehensive Income / (Loss) | |||||||||
The Company reports the components of comprehensive income / (loss) within the consolidated statements of operations and comprehensive income / (loss). Comprehensive income / (loss) includes net income / (loss) and foreign translation adjustment. | ||||||||||
Earnings / (Loss) Per Common Share | T. Earnings / (Loss) Per Common Share | |||||||||
In accordance with FASB ASC 260, Earnings Per Share (“FASB ASC 260”), the Company presents both basic and diluted earnings / (loss) per common share in its consolidated financial statements and footnotes. Basic earnings / (loss) per common share (“Basic EPS”) excludes dilution and is computed by dividing net income or loss allocable to common stockholders or members by the weighted average number of common shares and restricted stock entitled to non-forfeitable dividends outstanding for the period. Diluted earnings per common share (“Diluted EPS”) reflects the potential dilution of common stock equivalents (such as restricted stock and restricted units entitled to forfeitable dividends, and in-the-money stock options), if they are not anti-dilutive. See note 24 for the computation of earnings/(loss) per common share. | ||||||||||
Recent Accounting Developments | U. 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 our 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. We 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 our 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 that 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 may have to our 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 it may have to our consolidated financial statements. | ||||||||||
In August 2014, the FASB issued ASU No. 2014-13, Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity, which provides a measurement alternative for an entity that consolidates collateralized financing entities. A collateralized financing entity is a variable interest entity with nominal or no equity that holds financial assets and issues beneficial interests in those financial assets. The beneficial interests, which are financial liabilities of the collateralized financing entity, have contractual recourse only to the related assets of the collateralized financing entity. If elected, the alternative method results in the reporting entity measuring both the financial assets and financial liabilities of the collateralized financing entity using the more observable of the two fair value measurements, which effectively removes measurement differences between the financial assets and financial liabilities of the collateralized financing entity previously recorded as net income (loss) attributable to non-controlling and other beneficial interests and as an adjustment to appropriated retained earnings. The reporting entity continues to measure its own beneficial interests in the collateralized financing entity (other than those that represent compensation for services) at fair value. The ASU is effective for annual periods and interim periods with those annual periods beginning after December 15, 2015. A reporting entity may apply the ASU using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the annual period of adoption. A reporting entity may also apply the ASU retrospectively to all relevant prior periods beginning with the annual period in which ASU No. 2009-17, Consolidation (Topic 810): Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, was adopted. Early adoption is permitted. The Company is currently evaluating the potential impact on its consolidated financial statements and related disclosures. | ||||||||||
In November 2014, the FASB issued ASU No. 2014-17, Pushdown Accounting, which provides guidance on whether and at what threshold an acquired entity can apply pushdown accounting in its separate financial statements. The amendment gives the acquired entity the option of applying pushdown accounting in the reporting period in which the change-in-control event occurs. The decision to apply pushdown accounting is made for each individual change-in-control event. Once the election is made for a particular event, it is irrevocable. Furthermore, an entity may elect to apply push down accounting in a period subsequent to the change-in-control event but must treat such application as a change in accounting principle and apply the guidance of Accounting Changes and Error Corrections (Topic 250). The amendment is effective on November 18, 2014. This ASU will have no effect on the consolidated financial statements of the Company. The Company is currently evaluating the potential impact on any separately issued subsidiary statements. | ||||||||||
Business Concentration | V. Business Concentration | |||||||||
A substantial portion of the Company’s asset management revenues in a year may be derived from a small number of transactions. CDO asset management revenue was generated from a limited number of CDOs. In addition, the Company may earn a substantial portion of its income in the form of principal transactions. This is comprised of gains and losses on a small number of investments. | ||||||||||
The following table provides a summary for the relevant periods | ||||||||||
SUMMARY OF REVENUE CONCENTRATION | ||||||||||
(Dollars in Thousands) | ||||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
CDO Asset Management | ||||||||||
CDO asset management revenue and related service agreements | $ | 10,999 | $ | 13,664 | $ | 21,729 | ||||
Total asset management revenue | $ | 14,496 | $ | 19,239 | $ | 23,172 | ||||
Total revenues | $ | 55,750 | $ | 57,517 | $ | 95,240 | ||||
CDO asset management % as compared to total asset management fees | 76% | 71% | 94% | |||||||
CDO asset management % as compared to total revenues | 20% | 24% | 23% | |||||||
Number of CDOs generating management fees | 14 | 21 | 25 | |||||||
Principal Transactions | ||||||||||
Principal transactions and other income | $ | 7,979 | $ | -6,668 | $ | -2,439 | ||||
Principal transactions % as compared to total revenues | 14% | -12% | -3% | |||||||
Non CDO asset management revenue is also derived from a small number of engagements. Principal transaction income is generated from a limited number of investments. See note 8. | ||||||||||
The Company’s trading revenue is generated from transactions with a diverse set of institutional customers. The Company does not consider its trading revenue to be concentrated from a customer perspective. | ||||||||||
Fair Value of Financial Instruments | W. 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 9 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 9 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 9 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 9 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 December 31, 2014 and 2013, the fair value of the Company’s debt was estimated to be $39.3 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 9 and 10. 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 and Eurodollar futures. For derivative instruments, such as TBAs, the fair value is generally based on market price quotations from third party pricing services. See note 9 for disclosures concerning the categorization of the fair value measurements within the three level fair value hierarchy. | ||||||||||
Recovered_Sheet1
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||
Summary of Revenue Concentration | ||||||||||
SUMMARY OF REVENUE CONCENTRATION | ||||||||||
(Dollars in Thousands) | ||||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
CDO Asset Management | ||||||||||
CDO asset management revenue and related service agreements | $ | 10,999 | $ | 13,664 | $ | 21,729 | ||||
Total asset management revenue | $ | 14,496 | $ | 19,239 | $ | 23,172 | ||||
Total revenues | $ | 55,750 | $ | 57,517 | $ | 95,240 | ||||
CDO asset management % as compared to total asset management fees | 76% | 71% | 94% | |||||||
CDO asset management % as compared to total revenues | 20% | 24% | 23% | |||||||
Number of CDOs generating management fees | 14 | 21 | 25 | |||||||
Principal Transactions | ||||||||||
Principal transactions and other income | $ | 7,979 | $ | -6,668 | $ | -2,439 | ||||
Principal transactions % as compared to total revenues | 14% | -12% | -3% | |||||||
Acquisitions_And_Private_Inves1
Acquisitions And Private Investment In IFMI (Tables) (Star Asia Manager [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Star Asia Manager [Member] | |||
Business Acquisition [Line Items] | |||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | |||
Total Estimated Fair Value as of Acquisition Date | |||
Assets acquired: | |||
Cash and cash equivalents | $ | 1,104 | |
Due from related parties | 253 | ||
Other assets | 150 | ||
Liabilities assumed: | |||
Accounts payable and other liabilities | -55 | ||
Fair value of net assets acquired | 1,452 | ||
Purchase price (1) | 1,855 | ||
Intangible Asset (2) | $ | 403 | |
As provisional amounts, the amounts in the table above are subject to changes during the measurement period. See notes 15 and 28. | |||
(1)The purchase price represents the cash paid to Mercury of $425, the note payable to Mercury of $725, and the Company’s equity method investment immediately prior to the Star Asia Manager Repurchase Transaction. For purposes of the provisional amounts, the Company has assumed the carrying value of the Company’s equity method investment immediately prior to the Star Asia Manager Repurchase Transaction approximated fair value. As with all provisional purchase accounting amounts, this is subject to adjustment during the measurement period. | |||
(2)For purposes of the provisional purchase accounting, the Company determined that the excess of the purchase price over the net fair value of tangible assets acquired should entirely be allocated to an intangible asset representing the value of Star Asia Manager’s investment management contract with Star Asia. The Company treated the estimated value as an intangible asset with a finite life. The Company amortized the intangible asset using the straight-line method over the estimated economic life of the asset of 1.3 years. The intangible asset was allocated to the Asset Management business segment. See note 27. As with all provisional purchase accounting amounts, this was subject to adjustment during the measurement period. | |||
Receivables_From_And_Payables_1
Receivables From And Payables To Brokers, Dealers, And Clearing Agencies (Tables) | 12 Months Ended | ||||||
Dec. 31, 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 December 31, 2014 and 2013, respectively. | ||||||
RECEIVABLES FROM BROKERS, DEALERS, AND CLEARING AGENCIES | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Deposits with clearing organizations | $ | 1,296 | $ | 1,428 | |||
Receivable from clearing organizations | 340 | 418 | |||||
Receivables from brokers, dealers, and clearing agencies | $ | 1,636 | $ | 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 December 31, 2014 and 2013, respectively. | |||||||
PAYABLES TO BROKERS, DEALERS, AND CLEARING AGENCIES | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Unsettled regular way trades, net | $ | 4,971 | $ | 5,600 | |||
Margin payable | 43,042 | 25,111 | |||||
Payables to brokers, dealers, and clearing agencies | $ | 48,013 | $ | 30,711 | |||
Other_Receivables_Tables
Other Receivables (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Receivables [Abstract] | |||||||
Schedule Of Other Receivables | |||||||
OTHER RECEIVABLES | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Asset management fees | $ | 3,165 | $ | 3,886 | |||
New issue and advisory fees | - | 150 | |||||
Accrued interest and dividends receivable | 931 | 695 | |||||
Notes receivable | 2,463 | 1,849 | |||||
Revenue share receivable | 2,217 | 628 | |||||
Other | 622 | 554 | |||||
Other receivables | $ | 9,398 | $ | 7,762 | |||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Financial Instruments [Abstract] | |||||||||||
Schedule Of Trading Securities | |||||||||||
INVESTMENTS - TRADING | |||||||||||
(Dollars in Thousands) | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
U.S. government agency MBS and CMOs (1) | $ | 11,647 | $ | 13,520 | |||||||
U.S. government agency debt securities | 25,785 | 32,213 | |||||||||
RMBS | 358 | 1,584 | |||||||||
U.S. Treasury securities | 1,131 | 764 | |||||||||
CLOs | 952 | 186 | |||||||||
Other ABS | 112 | 268 | |||||||||
SBA loans | 29,681 | 27,719 | |||||||||
Corporate bonds and redeemable preferred stock | 22,142 | 23,562 | |||||||||
Foreign government bonds | - | 88 | |||||||||
Municipal bonds | 33,664 | 16,024 | |||||||||
Exchange traded funds | - | 6 | |||||||||
Certificates of deposit | 985 | 1,648 | |||||||||
Equity securities | 291 | 36 | |||||||||
Investments-trading | $ | 126,748 | $ | 117,618 | |||||||
(1)Includes TBAs. See notes 3-G and 10. | |||||||||||
Schedule Of Trading Securities Sold, Not Yet Purchased | |||||||||||
TRADING SECURITIES SOLD, NOT YET PURCHASED | |||||||||||
(Dollars in Thousands) | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
U.S. government agency MBS (1) | $ | 1,666 | $ | 121 | |||||||
U.S. Treasury securities | 15,644 | 38,066 | |||||||||
SBA loans | 4 | - | |||||||||
Corporate bonds and redeemable preferred stock | 31,406 | 10,679 | |||||||||
Foreign government bonds | - | 26 | |||||||||
Municipal bonds | 20 | 88 | |||||||||
Certificates of deposit | - | 524 | |||||||||
Trading securities sold, not yet purchased | $ | 48,740 | $ | 49,504 | |||||||
(1)Includes TBAs. See notes 3-G and 10. | |||||||||||
Schedule Of Other Investments | |||||||||||
OTHER INVESTMENTS, AT FAIR VALUE | |||||||||||
(Dollars in Thousands) | |||||||||||
31-Dec-14 | |||||||||||
Cost | Carrying Value | Unrealized Gain(Loss) | |||||||||
CLOs | $ | 23,139 | $ | 21,518 | $ | -1,621 | |||||
CDOs | 193 | 11 | -182 | ||||||||
Equity Securities: | |||||||||||
EuroDekania | 6,503 | 3,717 | -2,786 | ||||||||
Tiptree | 5,455 | 2,472 | -2,983 | ||||||||
Other securities | 176 | 33 | -143 | ||||||||
Total equity securities | 12,134 | 6,222 | -5,912 | ||||||||
Residential loans | 118 | 565 | 447 | ||||||||
Foreign currency forward contracts | - | 83 | 83 | ||||||||
Other investments, at fair value | $ | 35,584 | $ | 28,399 | $ | -7,185 | |||||
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 sold its ownership interests in the Star Asia Group. See note 5. | |||||||||||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 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 | ||||||||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||
(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 | $ | 11,647 | $ | - | $ | 11,647 | $ | - | ||||||||||||||||||||
U.S. government agency debt securities | 25,785 | - | 25,785 | - | ||||||||||||||||||||||||
RMBS | 358 | - | 358 | - | ||||||||||||||||||||||||
U.S. Treasury securities | 1,131 | 1,131 | - | - | ||||||||||||||||||||||||
CLOs | 952 | - | 952 | - | ||||||||||||||||||||||||
Other ABS | 112 | - | 112 | - | ||||||||||||||||||||||||
SBA loans | 29,681 | - | 29,681 | - | ||||||||||||||||||||||||
Corporate bonds and redeemable preferred stock | 22,142 | - | 22,142 | - | ||||||||||||||||||||||||
Municipal bonds | 33,664 | - | 33,664 | - | ||||||||||||||||||||||||
Certificates of deposit | 985 | - | 985 | - | ||||||||||||||||||||||||
Equity securities | 291 | 233 | 58 | - | ||||||||||||||||||||||||
Total investments - trading | $ | 126,748 | $ | 1,364 | $ | 125,384 | $ | - | ||||||||||||||||||||
Other investments, at fair value | ||||||||||||||||||||||||||||
EuroDekania | $ | 3,717 | $ | - | $ | - | $ | 3,717 | ||||||||||||||||||||
Tiptree | 2,472 | 2,472 | - | - | ||||||||||||||||||||||||
Other equity securities | 33 | 23 | 10 | - | ||||||||||||||||||||||||
CLOs | 21,518 | - | - | 21,518 | ||||||||||||||||||||||||
CDOs | 11 | - | - | 11 | ||||||||||||||||||||||||
Residential loans | 565 | - | 565 | - | ||||||||||||||||||||||||
Foreign currency forward contracts | 83 | 83 | - | - | ||||||||||||||||||||||||
Total other investments, at fair value | $ | 28,399 | $ | 2,578 | $ | 575 | $ | 25,246 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Trading securities sold, not yet purchased: | ||||||||||||||||||||||||||||
U.S. government agency MBS | $ | 1,666 | $ | - | $ | 1,666 | $ | - | ||||||||||||||||||||
U.S. Treasury securities | 15,644 | 15,644 | - | - | ||||||||||||||||||||||||
SBA loans | 4 | - | 4 | - | ||||||||||||||||||||||||
Corporate bonds and redeemable preferred stock | 31,406 | - | 31,406 | - | ||||||||||||||||||||||||
Municipal bonds | 20 | - | 20 | - | ||||||||||||||||||||||||
Total trading securities sold, not yet purchased | $ | 48,740 | $ | 15,644 | $ | 33,096 | $ | - | ||||||||||||||||||||
FAIR VALUE MEASUREMENTS ON A RECURRING BASIS | ||||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
(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 | $ | 4,192 | $ | - | $ | - | $ | 4,192 | ||||||||||||||||||||
Star Asia | 17,104 | - | - | 17,104 | ||||||||||||||||||||||||
Tiptree | 2,282 | - | 2,282 | - | ||||||||||||||||||||||||
Star Asia Special Situations Fund | 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 | $ | - | ||||||||||||||||||||
Schedule Of Assets And Liabilities Measured With Level 3 Inputs | ||||||||||||||||||||||||||||
LEVEL 3 INPUTS | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
31-Dec-13 | Net trading | Gains and losses | Transfers out of Level 3 | Accretion of income | Purchases | Sales and returns of capital | 31-Dec-14 | Change in unrealized gains /(losses) for the period included in earnings (1) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Investments-trading | ||||||||||||||||||||||||||||
CLOs | $ | 186 | $ | -3 | $ | - | $ | - | $ | - | $ | - | $ | -183 | $ | - | $ | - | ||||||||||
Total investments-trading | $ | 186 | $ | -3 | $ | - | $ | - | $ | - | $ | - | $ | -183 | $ | - | $ | - | ||||||||||
Other investments, at fair value: | ||||||||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||
EuroDekania | $ | 4,192 | $ | - | $ | 1,800 | $ | - | $ | - | $ | - | $ | -2,275 | $ | 3,717 | $ | 1,800 | ||||||||||
Star Asia | 17,104 | - | 78 | - | - | - | -17,182 | - | - | |||||||||||||||||||
Star Asia Special Situations Fund | 2,747 | - | - | - | - | - | -2,747 | - | - | |||||||||||||||||||
Total equity securities | 24,043 | - | 1,878 | - | - | - | -22,204 | 3,717 | 1,800 | |||||||||||||||||||
CLOs | - | - | -1,699 | - | 1,577 | 25,288 | -3,648 | 21,518 | -1,622 | |||||||||||||||||||
CDOs | 35 | - | -24 | - | - | - | - | 11 | - | |||||||||||||||||||
Total other investments, fair value | $ | 24,078 | $ | - | $ | 155 | $ | - | $ | 1,577 | $ | 25,288 | $ | -25,852 | $ | 25,246 | $ | 178 | ||||||||||
(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. | ||||||||||||||||||||||||||||
LEVEL 3 INPUTS | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
31-Dec-12 | Net trading | Principal transactions and other income | Transfers out of Level 3 | Accretion of income | Purchases | Sales and returns of capital | 31-Dec-13 | Change in unrealized gains /(losses) for the period included in earnings (1) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Investments-trading | ||||||||||||||||||||||||||||
CLOs | $ | 295 | $ | 82 | $ | - | $ | - | $ | - | $ | - | $ | -191 | $ | 186 | $ | -111 | ||||||||||
SBA loans | - | 213 | - | - | - | 37 | -250 | - | - | |||||||||||||||||||
Total investments-trading | $ | 295 | $ | 295 | $ | - | $ | - | $ | - | $ | 37 | $ | -441 | $ | 186 | $ | -111 | ||||||||||
Other investments, at fair value: | ||||||||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||
EuroDekania | $ | 2,054 | $ | - | $ | 1,167 | $ | - | $ | - | $ | 971 | $ | - | $ | 4,192 | $ | 1,167 | ||||||||||
Star Asia | 30,169 | - | -13,065 | - | - | - | - | 17,104 | -13,065 | |||||||||||||||||||
Tiptree | 2,834 | - | - | -2,834 | - | - | - | - | - | |||||||||||||||||||
Star Asia Special Situations Fund | 2,503 | - | 152 | - | - | 302 | -210 | 2,747 | 152 | |||||||||||||||||||
Total equity securities | 37,560 | - | -11,746 | -2,834 | - | 1,273 | -210 | 24,043 | -11,746 | |||||||||||||||||||
CDOs | 77 | - | -42 | - | - | - | 35 | -42 | ||||||||||||||||||||
Total other investments, fair value | $ | 37,637 | $ | - | $ | -11,788 | $ | -2,834 | $ | - | $ | 1,273 | $ | -210 | $ | 24,078 | $ | -11,788 | ||||||||||
(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. | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
31-Dec-14 | Technique | Inputs | Average | Inputs | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Other investments, at fair value | ||||||||||||||||||||||||||||
CLOs | $ | 21,518 | Discounted Cash Flow Model | Yield | 16.2% | 12.4% - 18.3% | ||||||||||||||||||||||
Duration (years) | 4.1 | 2.6 - 4.5 | ||||||||||||||||||||||||||
Default rate | 1.0% | 1.00% | ||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
(dollars in thousands) | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | |||||||||||||||||||||||||
Other investments, at fair value | ||||||||||||||||||||||||||||
EuroDekania (a) | $ | 3,717 | N/A | N/A | N/A | |||||||||||||||||||||||
$ | 3,717 | |||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
(dollars in thousands) | 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 | $ | 321 | 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. As described in more detail in note 5, the Company sold its investment in Star Asia in February 2014 along with the other Star Asia Group investments. According to ASC 820, when a sale is considered probable as 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 as of December 31, 2013, by utilizing a valuation model that took into account the terms and conditions of the sale in February 2014. | ||||||||||||||||||||||||||||
(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. As described in more detail in note 5, the Company sold its investment in Star Asia Special Situations Fund in February 2014 along with the other Star Asia Group investments. According to ASC 820, when a sale is considered probable as 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) | 12 Months Ended | ||||||||||
Dec. 31, 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 | As of December 31, 2014 | As of December 31, 2013 | ||||||||
TBAs | Investments-trading | $ | 1,928 | $ | 188 | ||||||
Other extended settlement trades | Investments-trading | 2 | - | ||||||||
Foreign currency forward contracts | Other investments, at fair value | 83 | 190 | ||||||||
TBAs | Trading securities sold, not yet purchased | -1,666 | -66 | ||||||||
Other extended settlement trades | Trading securities sold, not yet purchased | -4 | - | ||||||||
$ | 343 | $ | 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 | For the Year Ended December 31, 2014 | For the Year Ended December 31, 2013 | For the Year Ended December 31, 2012 | |||||||
Foreign currency forward contracts | Revenues-principal transactions and other income | $ | -167 | $ | 260 | $ | 40 | ||||
EuroDollar futures contracts | Revenues-net trading | - | - | -30 | |||||||
Other extended settlement trades | Revenues-net trading | -2 | - | - | |||||||
TBAs | Revenues-net trading | 2,180 | 3,153 | 1,185 | |||||||
$ | 2,011 | $ | 3,413 | $ | 1,195 | ||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Goodwill Disclosure [Abstract] | |||||||
Schedule Of Goodwill | |||||||
GOODWILL | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Cira SCM | $ | - | $ | 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) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Assets and Accounts Payable and Other Liabilities [Abstract] | |||||||
Schedule Of Other Assets | |||||||
OTHER ASSETS | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Deferred costs | $ | 1,665 | $ | 644 | |||
Prepaid expenses | 1,835 | 2,226 | |||||
Prepaid income taxes | - | 146 | |||||
Security deposits | 2,417 | 2,492 | |||||
Miscellaneous other assets | 190 | 146 | |||||
Cost method investment | 11 | 235 | |||||
Furniture, equipment, and leasehold improvements, net | 1,150 | 2,054 | |||||
Intangible assets | 166 | 483 | |||||
Equity method affiliates | - | -31 | |||||
Other assets | $ | 7,434 | $ | 8,395 | |||
Schedule Of Accounts Payable And Other Liabilities | |||||||
ACCOUNTS PAYABLE AND OTHER LIABILITIES | |||||||
(Dollars in Thousands) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Accounts payable | $ | 512 | $ | 738 | |||
Rent payable | 626 | 1,058 | |||||
Accrued interest payable | 318 | 376 | |||||
Accrued interest on securities sold, not yet purchased | 626 | 255 | |||||
Payroll taxes payable | 754 | 1,055 | |||||
Accrued income taxes | 63 | - | |||||
Other general accrued expenses | 2,204 | 4,994 | |||||
Accounts payable and other liabilities | $ | 5,103 | $ | 8,476 | |||
Furniture_Equipment_And_Leaseh1
Furniture, Equipment, And Leasehold Improvements, Net (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Schedule Of Furniture, Equipment, And Leasehold Improvements | ||||||||||
FURNITURE, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET | ||||||||||
(Dollars in Thousands) | ||||||||||
Estimated Useful Lives | 31-Dec-14 | 31-Dec-13 | ||||||||
Furniture and equipment | 3 to 5 Years | $ | 2,816 | $ | 3,169 | |||||
Leasehold improvements | 5 to 10 Years | 4,353 | 5,122 | |||||||
7,169 | 8,291 | |||||||||
Accumulated depreciation | -6,019 | -6,237 | ||||||||
Furniture, equipment, and leasehold improvements, net | $ | 1,150 | $ | 2,054 | ||||||
Investments_In_Equity_Method_A1
Investments In Equity Method Affiliates (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Investments in Equity Method Affiliates [Abstract] | ||||||||||||||||||||||||||||||
Schedule Of Investments In Equity Method Affiliates | ||||||||||||||||||||||||||||||
INVESTMENTS IN EQUITY METHOD AFFILIATES | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||
Star | Deep | Deep | Star | Star | Star Asia | Star | ||||||||||||||||||||||||
Asia | Value | Value | Asia | Asia | Capital | Asia | SAA | |||||||||||||||||||||||
Manager (3) | GP | GP II | SPV (3) | Opportunity (3) | Management (3) | Opportunity II (3) | Manager (3) | Other | Total | |||||||||||||||||||||
31-Dec-11 | $ | 1,046 | $ | 21 | $ | 33 | $ | 466 | $ | 4,460 | $ | 50 | $ | - | $ | - | $ | - | $ | 6,076 | ||||||||||
Investment / advances | - | - | - | 10 | - | 6 | 4,700 | - | - | 4,716 | ||||||||||||||||||||
Distributions / repayments | -1,600 | - | -1,720 | -662 | -4,982 | -652 | -2,477 | - | - | -12,093 | ||||||||||||||||||||
Reorganization (1) | - | - | - | - | - | - | -1,841 | - | - | -1,841 | ||||||||||||||||||||
Earnings / (loss) realized | 1,101 | -14 | 1,726 | 1,581 | 544 | 504 | -382 | -8 | - | 5,052 | ||||||||||||||||||||
31-Dec-12 | 547 | 7 | 39 | 1,395 | 22 | -92 | - | -8 | - | 1,910 | ||||||||||||||||||||
Investment / advances | - | - | - | - | - | - | - | 10 | 20 | 30 | ||||||||||||||||||||
Distributions / repayments | - | -7 | -26 | -2,682 | - | -134 | - | -245 | - | -3,094 | ||||||||||||||||||||
Acquisition (2) | -705 | - | - | - | - | - | - | - | - | -705 | ||||||||||||||||||||
Earnings / (loss) realized | 158 | - | -13 | 1,287 | -5 | 145 | - | 255 | 1 | 1,828 | ||||||||||||||||||||
31-Dec-13 | - | - | - | - | 17 | -81 | - | 12 | 21 | -31 | ||||||||||||||||||||
Investments / advances | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Distributions / repayments | - | - | - | - | -17 | -15 | - | -25 | -10 | -67 | ||||||||||||||||||||
Sale (3) | - | - | - | - | - | 83 | - | -1 | -11 | 71 | ||||||||||||||||||||
Earnings / (loss) realized | - | - | - | - | - | 13 | - | 14 | - | 27 | ||||||||||||||||||||
31-Dec-14 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
(1)On December 20, 2012, Star Asia Opportunity II completed a reorganization whereby its assets were contributed into a subsidiary of the Star Asia Special Situations Fund. The net effect of the reorganization to the Company was that the Company exchanged its ownership interest in Star Asia Opportunity II for cash and an interest in the Star Asia Special Situations Fund. The Star Asia Special Situations Fund was carried at fair value and included as a component of other investments, at fair value. | ||||||||||||||||||||||||||||||
The cash received by the Company in the reorganization is included as distributions / repayments above. The remaining carrying value of the Company’s equity method investment in Star Asia Opportunity II was $1,841 after taking into account the cash distribution from the reorganization. This amount was reclassified from investments in equity method affiliates to other investments, at fair value. It is shown as reorganization in the table above and was treated as the cost basis of the Company’s investment in the Star Asia Special Situations Fund. Any difference between the cost basis assigned and the fair value of the Company’s investment in the Star Asia Special Situations Fund was included as a component of principal transactions, and other income. See notes 8, 9, 28, and 29. | ||||||||||||||||||||||||||||||
(2)See note 4. | ||||||||||||||||||||||||||||||
(3)See note 5. | ||||||||||||||||||||||||||||||
Summarized Data Of Equity Method Investees | ||||||||||||||||||||||||||||||
SUMMARY DATA OF EQUITY METHOD INVESTEES | ||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||
Total Assets | $ | - | $ | 370,388 | ||||||||||||||||||||||||||
Liabilities | $ | - | $ | 144,578 | ||||||||||||||||||||||||||
Equity attributable to the investees | - | 225,810 | ||||||||||||||||||||||||||||
Non-controlling interest | - | - | ||||||||||||||||||||||||||||
Total Liabilities & Equity | $ | - | $ | 370,388 | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Net income / (loss) | $ | - | $ | 28,885 | $ | 2,248 | ||||||||||||||||||||||||
Net income / (loss) attributable to the investees | $ | - | $ | 29,501 | $ | 2,667 | ||||||||||||||||||||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Variable Interest Entity Disclosure [Abstract] | ||||||||||
Schedule Of Variable Interest Entities | ||||||||||
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES | ||||||||||
(Dollars in Thousands) | ||||||||||
31-Dec-14 | ||||||||||
Other Receivable | Other Investments, at fair value | Maximum Exposure to loss in non-consolidated VIEs | ||||||||
Managed VIEs | $ | 1,829 | $ | - | $ | 1,829 | ||||
Third party managed VIEs | 73 | 21,528 | 21,601 | |||||||
Total | $ | 1,902 | $ | 21,528 | $ | 23,430 | ||||
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) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||
Debt Outstanding | |||||||||||||||||||
DETAIL OF DEBT | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Description | Current Outstanding Par | 31-Dec-14 | 31-Dec-13 | Interest Rate Terms | Interest (3) | Maturity | |||||||||||||
Contingent convertible senior notes: | |||||||||||||||||||
10.50% contingent convertible senior notes (the "New Notes") | $ | - | $ | - | $ | 3,115 | 10.50% | 10.50 | % | May-14 | |||||||||
8.00% contingent convertible senior notes (the "8.0% Convertible Notes") | 8,248 | 8,248 | 8,248 | 8.00% | 8.00 | % | September 2018 (1) | ||||||||||||
$ | 8,248 | $ | 8,248 | 11,363 | |||||||||||||||
Junior subordinated notes: | |||||||||||||||||||
Alesco Capital Trust I | $ | 28,125 | -2 | 11,499 | 10,697 | 4.26% | 4.26 | % | Jul-37 | ||||||||||
Sunset Financial Statutory Trust I | 20,000 | -2 | 8,192 | 7,614 | 4.41% | 4.41 | % | Mar-35 | |||||||||||
$ | 48,125 | 19,691 | 18,311 | ||||||||||||||||
Total | $ | 27,939 | $ | 29,674 | |||||||||||||||
(1)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. | |||||||||||||||||||
(2)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. | |||||||||||||||||||
(3)Represents the interest rate as of the last day of the reporting period. | |||||||||||||||||||
Permanent_Equity_Tables
Permanent Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Permanent Equity [Abstract] | |||||||||||||
Schedule Of Unrestricted Common Stock Activity | |||||||||||||
ROLLFORWARD OF SHARES OUTSTANDING OF | |||||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. | |||||||||||||
Common Stock | Restricted Stock | Treasury Stock | Total | ||||||||||
31-Dec-11 | 10,132,497 | 2,597,620 | -50,400 | 12,679,717 | |||||||||
Issuance of shares | 230,846 | - | - | 230,846 | |||||||||
Issuance as equity-based compensation | - | 428,984 | - | 428,984 | |||||||||
Vesting of shares | 643,830 | -643,830 | - | - | |||||||||
Shares withheld for employee taxes | -162,048 | - | - | -162,048 | |||||||||
Forfeiture / cancellation of restricted stock (1) | - | -1,508,353 | - | -1,508,353 | |||||||||
Surrender of restricted stock (1) | - | -116,595 | - | -116,595 | |||||||||
Retirement of treasury stock | -50,400 | - | 50,400 | - | |||||||||
31-Dec-12 | 10,794,725 | 757,826 | - | 11,552,551 | |||||||||
Issuance of shares | 2,935,506 | - | - | 2,935,506 | |||||||||
Issuance as equity-based compensation | - | 408,079 | - | 408,079 | |||||||||
Vesting of shares / restricted units (2) | 739,931 | -649,796 | - | 90,135 | |||||||||
Shares withheld for employee taxes | -71,583 | - | - | -71,583 | |||||||||
Forfeiture / cancellation of restricted stock | - | -104,983 | - | -104,983 | |||||||||
31-Dec-13 | 14,398,579 | 411,126 | - | 14,809,705 | |||||||||
Issuance of shares | 186,342 | - | - | 186,342 | |||||||||
Issuance as equity-based compensation | - | 158,438 | - | 158,438 | |||||||||
Vesting of shares / restricted units (2) | 511,318 | -378,868 | - | 132,450 | |||||||||
Shares withheld for employee taxes | -37,458 | - | - | -37,458 | |||||||||
Forfeiture / cancellation of restricted stock | - | -32,258 | - | -32,258 | |||||||||
Repurchase and retirement of common stock | -200,000 | - | - | -200,000 | |||||||||
December 31, 2014 (3) | 14,858,781 | 158,438 | - | 15,017,219 | |||||||||
(1)In December 2012, Mr. Cohen transferred 116,595 restricted shares of IFMI Common Stock to the Company in order to satisfy his obligation under the Equity Funding Agreement. See note 20 for the discussion about the 2009 Restricted Units Pursuant to the 2009 Equity Award Plan. | |||||||||||||
(2)Vesting includes 132,450 and 90,135 of unvested restricted units of IFMI Common Stock for the years ended December 31, 2014 and 2013, respectively. See note 20. | |||||||||||||
(3)Excludes remaining restricted units of IFMI Common Stock. See note 20. | |||||||||||||
Operating LLC Membership Units | |||||||||||||
ROLLFORWARD OF UNITS OUTSTANDING OF | |||||||||||||
THE OPERATING LLC | |||||||||||||
Units Held by IFMI | Units Held by Daniel G. Cohen | Units Held by Others | Total | ||||||||||
31-Dec-11 | 10,248,009 | 4,983,557 | 268,445 | 15,500,011 | |||||||||
Issuance of Units under UIS, net | 705,083 | - | - | 705,083 | |||||||||
Vesting of Units | - | - | 302,934 | 302,934 | |||||||||
Redemption of Operating LLC Units for cash | 230,846 | - | -230,846 | - | |||||||||
Retirement of treasury stock | -50,400 | - | - | -50,400 | |||||||||
31-Dec-12 | 11,133,538 | 4,983,557 | 340,533 | 16,457,628 | |||||||||
Issuance of Units under UIS, net | 502,614 | - | - | 502,614 | |||||||||
Issuance of Units for Mead/EBC Investment | 2,749,167 | - | - | 2,749,167 | |||||||||
Vesting of Units | - | - | 186,339 | 186,339 | |||||||||
Redemption of Operating LLC Units for IFMI Shares | 186,339 | - | -186,339 | - | |||||||||
31-Dec-13 | 14,571,658 | 4,983,557 | 340,533 | 19,895,748 | |||||||||
Issuance of Units under UIS, net | 459,219 | - | - | 459,219 | |||||||||
Vesting of Units | - | - | 186,342 | 186,342 | |||||||||
Redemption of Operating LLC Units for IFMI Shares | 186,342 | - | -186,342 | - | |||||||||
Repurchase and retirement of common stock | -200,000 | - | - | -200,000 | |||||||||
December 31, 2014 (1) | 15,017,219 | 4,983,557 | 340,533 | 20,341,309 | |||||||||
(1)Unit amounts above exclude unvested Operating LLC units. See note 20. | |||||||||||||
Schedule Of Effects Of Changes In Ownership Interest Subsidiary | |||||||||||||
For the Year Ended December 31, 2014 | For the Year Ended December 31, 2013 | For the Year Ended December 31, 2012 | |||||||||||
Net income / (loss) attributable to IFMI | $ | -2,585 | $ | -13,318 | $ | -968 | |||||||
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 | 215 | 2,764 | 928 | ||||||||||
Changes from net income / loss) attributable to IFMI and transfers (to) from non-controlling interest | $ | -2,370 | $ | -10,554 | $ | -40 | |||||||
EquityBased_Compensation_Table
Equity-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Equity-Based Compensation Included In Compensation And Benefits | |||||||||||||
EQUITY-BASED COMPENSATION INCLUDED IN COMPENSATION AND BENEFITS | |||||||||||||
(Dollars in Thousands) | |||||||||||||
For the year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Equity-based compensation expense | $ | 1,319 | $ | 1,947 | $ | 1,271 | |||||||
Non equity-based compensation expense | 28,445 | 45,220 | 61,680 | ||||||||||
Total compensation and benefits | $ | 29,764 | $ | 47,167 | $ | 62,951 | |||||||
Period Costs by Plan Name or Instrument | |||||||||||||
DETAIL OF EQUITY BASED COMPENSATION BY PLAN | |||||||||||||
For the year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
The 2009 Equity Award Plan | $ | - | $ | - | $ | -586 | |||||||
Operating LLC Units - JVB Acquisition | 32 | 911 | 911 | ||||||||||
Restricted Units - 2006/2010 Plans | 538 | 905 | 1,290 | ||||||||||
Options - 2010 Plan | 749 | 114 | - | ||||||||||
Restricted PrinceRidge units (1) | - | 17 | -344 | ||||||||||
Total equity based compensation expense | $ | 1,319 | $ | 1,947 | $ | 1,271 | |||||||
-1 | Relates to the issuance of restricted PrinceRidge units to certain investment banking professionals and executives of PrinceRidge. As of December 31, 2014, there were no restricted PrinceRidge units outstanding. | ||||||||||||
Stock Options, Activity | STOCK OPTIONS - SERVICE BASED VESTING | ||||||||||||
Number of Options | Weighted Average Exercise Price | Weighted average grant date fair value | Weighted Average Remaining Contractual Term (in years) | ||||||||||
Balance at January 1, 2013 | - | $ | - | ||||||||||
Granted | 3,000,000 | 4.00 | $ 0.70 | ||||||||||
Vested | - | - | |||||||||||
Forfeited | - | - | |||||||||||
Balance at December 31, 2013 | 3,000,000 | 4.00 | |||||||||||
Granted | 278,571 | 4.00 | $ 0.70 | ||||||||||
Vested | - | - | |||||||||||
Forfeited | -85,714 | 4.00 | $ 0.70 | ||||||||||
Balance at December 31, 2014 | 3,192,857 | $ | 4.00 | $ 0.70 | 3.9 | ||||||||
Exercisable at December 31, 2014 | 763,094 | $ | 4.44 | - | |||||||||
-1 | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing stock price of the Company’s Common Stock of on December 31, 2014. As of December 31, 2014, all options were out of the money. | ||||||||||||
Service Based Vesting [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted Stock and Restricted Stock Units Activity | |||||||||||||
RESTRICTED STOCK AND RESTRICTED UNITS - SERVICE BASED VESTING | |||||||||||||
Number of Shares of Restricted Stock | Weighted average grant date fair value | Number of Restricted Units | Weighted average grant date fair value | ||||||||||
Unvested at January 1, 2012 | 1,574,064 | $ | 4.17 | 40,135 | $ | 3.26 | |||||||
Granted | 396,726 | 1.43 | 132,450 | 1.51 | |||||||||
Vested | -543,830 | 4.47 | - | - | |||||||||
Forfeited | -883,308 | 3.75 | - | - | |||||||||
Surrendered (1) | -116,595 | 5.00 | - | - | |||||||||
Unvested at December 31, 2012 | 427,057 | 1.87 | 172,585 | 1.92 | |||||||||
Granted | 408,079 | 1.98 | - | - | |||||||||
Vested | -522,008 | 1.62 | -40,135 | 3.26 | |||||||||
Forfeited | -1,828 | 4.89 | - | - | |||||||||
Unvested at December 31, 2013 | 311,300 | 2.42 | 132,450 | 1.51 | |||||||||
Granted | 158,438 | 2.43 | - | - | |||||||||
Vested | -311,300 | 2.42 | -132,450 | 1.51 | |||||||||
Unvested at December 31, 2014 | 158,438 | $ | 2.43 | - | $ | - | |||||||
Performance and Service Based Vesting [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted Stock and Restricted Stock Units Activity | |||||||||||||
RESTRICTED STOCK AND RESTRICTED UNITS - PERFORMANCE AND SERVICE BASED VESTING | |||||||||||||
Number of Shares of Restricted Stock | Weighted average grant date fair value | Number of Restricted Units (1) | Weighted average grant date fair value | ||||||||||
Unvested at January 1, 2012 | 1,023,556 | $ | 4.72 | 50,000 | $ | 3.07 | |||||||
Granted | 32,258 | 1.47 | 500,000 | -1 | |||||||||
Vested | -100,000 | 4.60 | - | - | |||||||||
Forfeited | -625,045 | 4.69 | -50,000 | 3.07 | |||||||||
Unvested at December 31, 2012 | 330,769 | 4.34 | 500,000 | $ | - | ||||||||
Granted | - | - | 50,000 | 2.42 | |||||||||
Vested | -127,788 | 4.34 | -50,000 | 2.42 | |||||||||
Forfeited | -103,155 | 4.89 | - | - | |||||||||
Unvested at December 31, 2013 | 99,826 | 3.78 | 500,000 | $ | - | ||||||||
Granted | - | - | - | - | |||||||||
Vested | -67,568 | 4.89 | - | - | |||||||||
Forfeited | -32,258 | 1.47 | - | - | |||||||||
Unvested at December 31, 2014 | - | $ | - | 500,000 | $ | - | |||||||
(1)During the first quarter of 2012, the Company issued 500,000 restricted units of IFMI Common Stock to a non-employee. FASB ASC 505-50 requires that an equity instrument issued to a non-employee should be measured by using the stock price and other measurement assumptions as of the earlier of the date at which either (i) a commitment for performance by the counterparty has been reached or (2) the counterparty’s performance is complete. In accordance with FASB ASC 505-50, the Company will not accrue any expense until the actual vesting date occurs. As of the grant date, the restricted units were valued at $0. | |||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||||
Components of Income Tax Expense (Benefit) | |||||||||||||||||||
INCOME TAX EXPENSE | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Current income tax expense (benefit): | |||||||||||||||||||
Federal income tax expense (benefit) | $ | - | $ | -1,442 | $ | 142 | |||||||||||||
Foreign income tax expense (benefit) | 228 | 8 | 20 | ||||||||||||||||
State and local income tax expense (benefit) | - | -57 | 120 | ||||||||||||||||
228 | -1,491 | 282 | |||||||||||||||||
Deferred income tax expense (benefit) | |||||||||||||||||||
Federal income tax expense (benefit) | -566 | -1,827 | -703 | ||||||||||||||||
Foreign income tax expense (benefit) | - | - | - | ||||||||||||||||
State and local income tax expense (benefit) | -76 | -247 | -194 | ||||||||||||||||
-642 | -2,074 | -897 | |||||||||||||||||
Total | $ | -414 | $ | -3,565 | $ | -615 | |||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | |||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Domestic | $ | -2,583 | $ | -20,404 | $ | -3,711 | |||||||||||||
Foreign | -1,503 | -3,080 | 1,055 | ||||||||||||||||
Total Income (loss) before income taxes | $ | -4,086 | $ | -23,484 | $ | -2,656 | |||||||||||||
Effective Income Tax Rate Reconciliation | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Federal statutory rate - 35% | $ | -1,430 | $ | -8,220 | $ | -929 | |||||||||||||
Pass thru impact | 375 | 2,581 | 352 | ||||||||||||||||
Deferred tax valuation allowance | 489 | 3,812 | -42 | ||||||||||||||||
Recognition of previously unrecognized tax benefit | - | -1,231 | - | ||||||||||||||||
Other | 152 | -507 | 4 | ||||||||||||||||
Total | $ | -414 | $ | -3,565 | $ | -615 | |||||||||||||
Schedule of Deferred Tax Assets and Liabilities | |||||||||||||||||||
DEFERRED TAX ASSET AND LIABILITY | |||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||
Asset | Liability | Net | Asset | Liability | Net | ||||||||||||||
Federal net operating loss carry-forward | $ | 34,788 | $ | - | $ | 34,788 | $ | 33,439 | $ | - | $ | 33,439 | |||||||
State net operating loss carry-forward | 5,791 | - | 5,791 | 5,291 | - | 5,291 | |||||||||||||
Federal capital loss carry-forward | 10,597 | - | 10,597 | 23,784 | - | 23,784 | |||||||||||||
Unrealized gain on debt | - | -12,426 | -12,426 | - | -13,274 | -13,274 | |||||||||||||
Unrealized loss on investment in Operating LLC | 68,813 | - | 68,813 | 110,382 | - | 110,382 | |||||||||||||
Other | 754 | - | 754 | 873 | - | 873 | |||||||||||||
Gross deferred tax asset / (liability) | 120,743 | -12,426 | 108,317 | 173,769 | -13,274 | 160,495 | |||||||||||||
Less: valuation allowance | -112,205 | - | -112,205 | -165,025 | - | -165,025 | |||||||||||||
Net deferred tax asset / (liability) | $ | 8,538 | $ | -12,426 | $ | -3,888 | $ | 8,744 | $ | -13,274 | $ | -4,530 | |||||||
Schedule of Unrecognized Tax Benefits | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Unrecognized tax benefits as of January 1 | $ | - | $ | 1,231 | $ | 1,231 | |||||||||||||
Increases due to tax positions taken during prior periods | - | - | - | ||||||||||||||||
Increases due to tax positions taken in current period | - | - | - | ||||||||||||||||
Decreases due to settlements with tax authorities | - | - | - | ||||||||||||||||
Reductions due to lapse of applicable statute of limitations | - | -1,231 | - | ||||||||||||||||
Unrecognized tax benefits as of December 31 | $ | - | $ | - | $ | 1,231 | |||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income / (Loss) (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Accumulated Other Comprehensive Income (Loss) Disclosure [Abstract] | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) AND INCOME TAX EFFECT OF ITEMS ALLOCATED TO OTHER COMPREHENSIVE INCOME / (LOSS) | ||||||||||
(Dollars in thousands) | ||||||||||
Foreign currency items | Tax effect | Total | ||||||||
31-Dec-11 | $ | -626 | $ | - | $ | -626 | ||||
Change in foreign currency items | 154 | - | 154 | |||||||
Other comprehensive income / (loss), net | 154 | - | 154 | |||||||
Acquisition / (surrender) of additional units in consolidated subsidiary, net | -23 | - | -23 | |||||||
31-Dec-12 | -495 | - | -495 | |||||||
Change in foreign currency items | -14 | - | -14 | |||||||
Other comprehensive income / (loss), net | -14 | - | -14 | |||||||
Acquisition / (surrender) of additional units in consolidated subsidiary, net | -127 | - | -127 | |||||||
31-Dec-13 | -636 | - | -636 | |||||||
Change in foreign currency items | -126 | - | -126 | |||||||
Other comprehensive income / (loss), net | -126 | - | -126 | |||||||
Acquisition / (surrender) of additional units in consolidated subsidiary, net | -10 | - | -10 | |||||||
31-Dec-14 | $ | -772 | $ | - | $ | -772 | ||||
Net_Capital_Requirements_Table
Net Capital Requirements (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Net Capital Requirements [Abstract] | ||||||||||
Computation of Net Capital under Securities and Exchange Commission Regulation [Table Text Block] | ||||||||||
Statutory Net Capital Requirements | ||||||||||
(Dollars in thousands) | ||||||||||
As of December 31, 2014 | ||||||||||
Actual Net Capital or Liquid Capital | Amount Required | Excess | ||||||||
JVB | $ | 12,750 | $ | 267 | $ | 12,483 | ||||
CCFL | 3,502 | 2,038 | 1,464 | |||||||
Total | $ | 16,252 | $ | 2,305 | $ | 13,947 | ||||
As of December 31, 2013 | ||||||||||
Actual Net Capital or Liquid Capital | Amount Required | Excess | ||||||||
JVB | $ | 7,470 | $ | 188 | $ | 7,282 | ||||
CCPR | 18,566 | 250 | 18,316 | |||||||
CCFL | 2,593 | 2,198 | 395 | |||||||
Total | $ | 28,629 | $ | 2,636 | $ | 25,993 | ||||
Earnings_Loss_Per_Common_Share1
Earnings / (Loss) Per Common Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 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) | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Net income / (loss) attributable to IFMI | $ | -2,585 | $ | -13,318 | $ | -968 | |||
Add/ (deduct): Income / (loss) attributable to non-controlling interest attributable to Operating LLC membership units exchangeable into IFMI shares (1) | -1,087 | -6,592 | -857 | ||||||
Add / (deduct): Adjustment (2) | 185 | 876 | 307 | ||||||
Net income / (loss) on a fully converted basis | $ | -3,487 | $ | -19,034 | $ | -1,518 | |||
Weighted average common shares outstanding - Basic | 14,998,620 | 12,340,468 | 10,732,723 | ||||||
Unrestricted Operating LLC membership units exchangeable into IFMI shares (1) | 5,324,130 | 5,324,090 | 5,252,198 | ||||||
Weighted average common shares outstanding - Diluted (3) | 20,322,750 | 17,664,558 | 15,984,921 | ||||||
Net income / (loss) per common share - Basic | $ | -0.17 | $ | -1.08 | $ | -0.09 | |||
Net income / (loss) per common share - Diluted | $ | -0.17 | $ | -1.08 | $ | -0.09 | |||
(1)The Operating LLC membership units not held by IFMI (that is, those held by the non-controlling interest) may be redeemed and exchanged into shares of the Company on a one-to-one basis. The Operating LLC membership units not held by IFMI are redeemable at the member’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’s 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. These units are not included in the computation of basic earnings per share. These units enter into the computation of diluted net income / (loss) per common share when the effect is not anti-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 years ended December 31, 2014, 2013, and 2012, weighted average common shares outstanding excludes a total of 121,914, 395,457, and 144,401 shares, respectively, representing restricted Operating LLC units, restricted IFMI Common Stock, and restricted units of IFMI Common Stock. For the years ended December 31, 2014 and 2013, weighted average common shares outstanding also excludes 2,749,167 and 732,115 shares, respectively, from the assumed conversion of the 8% Convertibles Notes because the inclusion of the converted shares would be anti-dilutive. | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Commitments And Contingencies [Abstract] | ||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ||||||||||
FUTURE LEASE COMMITMENTS | ||||||||||
(Dollars in thousands) | ||||||||||
Lease | Less: Sublease | Net Commitment | ||||||||
2015 | $ | 4,332 | $ | -2,646 | $ | 1,686 | ||||
2016 | 3,275 | -2,105 | 1,170 | |||||||
2017 | 616 | - | 616 | |||||||
2018 | 312 | - | 312 | |||||||
2019 | 224 | - | 224 | |||||||
2020 and Thereafter | 249 | - | 249 | |||||||
$ | 9,008 | $ | -4,751 | $ | 4,257 | |||||
Recovered_Sheet2
Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Segment and Geographic Information [Abstract] | |||||||||||||||||||
Schedule Of Segment Reporting Information | |||||||||||||||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 28,056 | $ | - | $ | - | $ | 28,056 | $ | - | $ | 28,056 | |||||||
Asset management | - | 14,496 | - | 14,496 | - | 14,496 | |||||||||||||
New issue and advisory | 5,219 | - | - | 5,219 | - | 5,219 | |||||||||||||
Principal transactions and other income | 397 | 5,362 | 2,220 | 7,979 | - | 7,979 | |||||||||||||
Total revenues | 33,672 | 19,858 | 2,220 | 55,750 | - | 55,750 | |||||||||||||
Total operating expenses | 32,831 | 10,500 | 370 | 43,701 | 11,761 | 55,462 | |||||||||||||
Operating income / (loss) | 841 | 9,358 | 1,850 | 12,049 | -11,761 | 288 | |||||||||||||
Income / (loss) from equity method affiliates | - | 27 | - | 27 | - | 27 | |||||||||||||
Other non-operating income / (expense) | - | - | - | - | -4,401 | -4,401 | |||||||||||||
Income / (loss) before income taxes | 841 | 9,385 | 1,850 | 12,076 | -16,162 | -4,086 | |||||||||||||
Income tax expense / (benefit) | - | - | - | - | -414 | -414 | |||||||||||||
Net income / (loss) | 841 | 9,385 | 1,850 | 12,076 | -15,748 | -3,672 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | - | - | - | - | -1,087 | -1,087 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | 841 | $ | 9,385 | $ | 1,850 | $ | 12,076 | $ | -14,661 | $ | -2,585 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 756 | $ | 57 | $ | - | $ | 813 | $ | 290 | $ | 1,103 | |||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 38,528 | $ | - | $ | - | $ | 38,528 | $ | - | $ | 38,528 | |||||||
Asset management | - | 19,239 | - | 19,239 | - | 19,239 | |||||||||||||
New issue and advisory | 6,418 | - | - | 6,418 | - | 6,418 | |||||||||||||
Principal transactions and other income | 542 | 2,276 | -9,486 | -6,668 | - | -6,668 | |||||||||||||
Total revenues | 45,488 | 21,515 | -9,486 | 57,517 | - | 57,517 | |||||||||||||
Total operating expenses | 53,518 | 11,523 | 319 | 65,360 | 13,261 | 78,621 | |||||||||||||
Operating income / (loss) | -8,030 | 9,992 | -9,805 | -7,843 | -13,261 | -21,104 | |||||||||||||
Income / (loss) from equity method affiliates | - | 546 | 1,282 | 1,828 | - | 1,828 | |||||||||||||
Other non-operating income / (expense) | -164 | -9 | - | -173 | -4,035 | -4,208 | |||||||||||||
Income / (loss) before income taxes | -8,194 | 10,529 | -8,523 | -6,188 | -17,296 | -23,484 | |||||||||||||
Income tax expense / (benefit) | 14 | - | - | 14 | -3,579 | -3,565 | |||||||||||||
Net income / (loss) | -8,208 | 10,529 | -8,523 | -6,202 | -13,717 | -19,919 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | -9 | - | - | -9 | -6,592 | -6,601 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | -8,199 | $ | 10,529 | $ | -8,523 | $ | -6,193 | $ | -7,125 | $ | -13,318 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 795 | $ | 317 | $ | - | $ | 1,112 | $ | 293 | $ | 1,405 | |||||||
SEGMENT INFORMATION | |||||||||||||||||||
Statement of Operations Information | |||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Net trading | $ | 69,486 | $ | - | $ | - | $ | 69,486 | $ | - | $ | 69,486 | |||||||
Asset management | - | 23,172 | - | 23,172 | - | 23,172 | |||||||||||||
New issue and advisory | 6,021 | - | - | 6,021 | -1,000 | 5,021 | |||||||||||||
Principal transactions and other income | 166 | 894 | -3,499 | -2,439 | - | -2,439 | |||||||||||||
Total revenues | 75,673 | 24,066 | -3,499 | 96,240 | -1,000 | 95,240 | |||||||||||||
Total operating expenses | 74,595 | 8,690 | 347 | 83,632 | 11,313 | 94,945 | |||||||||||||
Operating income / (loss) | 1,078 | 15,376 | -3,846 | 12,608 | -12,313 | 295 | |||||||||||||
Income / (loss) from equity method affiliates | - | 3,309 | 1,743 | 5,052 | - | 5,052 | |||||||||||||
Other non-operating income / (expense) | -3,554 | - | - | -3,554 | -4,449 | -8,003 | |||||||||||||
Income / (loss) before income taxes | -2,476 | 18,685 | -2,103 | 14,106 | -16,762 | -2,656 | |||||||||||||
Income tax expense / (benefit) | 49 | - | - | 49 | -664 | -615 | |||||||||||||
Net income / (loss) | -2,525 | 18,685 | -2,103 | 14,057 | -16,098 | -2,041 | |||||||||||||
Less: Net income / (loss) attributable to the | |||||||||||||||||||
non-controlling interest | -216 | - | - | -216 | -857 | -1,073 | |||||||||||||
Net income / (loss) attributable to IFMI | $ | -2,309 | $ | 18,685 | $ | -2,103 | $ | 14,273 | $ | -15,241 | $ | -968 | |||||||
Other statement of operations data | |||||||||||||||||||
Depreciation and amortization (included in | |||||||||||||||||||
total operating expense) | $ | 859 | $ | 17 | $ | - | $ | 876 | $ | 429 | $ | 1,305 | |||||||
(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. During the third quarter of 2012, PrinceRidge (Capital Markets business segment) entered into an intercompany engagement with CCFL (Asset Management business segment). This intercompany transaction was eliminated in the unallocated segment. | |||||||||||||||||||
Reconciliation Of Assets From Segment To Consolidated | |||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Total Assets | $ | 248,881 | $ | 5,548 | $ | 28,649 | $ | 283,078 | $ | 13,009 | $ | 296,087 | |||||||
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 December 31, 2013 | |||||||||||||||||||
Capital | Asset | Principal | Segment | Unallocated | |||||||||||||||
Markets | Management | Investing | Total | -1 | Total | ||||||||||||||
Total Assets | $ | 172,526 | $ | 9,938 | $ | 26,897 | $ | 209,361 | $ | 7,689 | $ | 217,050 | |||||||
Included within total assets: | |||||||||||||||||||
Investment in equity method affiliates | $ | - | $ | -48 | $ | 17 | $ | -31 | $ | - | $ | -31 | |||||||
Goodwill (2) | $ | 7,937 | $ | 3,176 | $ | - | $ | 11,113 | $ | - | $ | 11,113 | |||||||
Intangible assets (2) | $ | 332 | $ | 151 | $ | - | $ | 483 | $ | - | $ | 483 | |||||||
(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 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) | |||||||||||||||||||
For the year ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Total Revenues: | |||||||||||||||||||
United States | $ | 44,991 | $ | 44,043 | $ | 78,597 | |||||||||||||
United Kingdom & Other | 10,636 | 11,178 | 16,643 | ||||||||||||||||
Asia | 123 | 2,296 | - | ||||||||||||||||
Total | $ | 55,750 | $ | 57,517 | $ | 95,240 | |||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||
Schedule Of Related Party Transactions | ||||||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Management fee revenue | Net trading | Principal transactions and other income | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||
TBBK | $ | - | $ | 24 | $ | - | $ | - | $ | - | ||||||
Star Asia | 125 | - | - | - | - | |||||||||||
Star Asia Capital Management | - | - | - | 13 | - | |||||||||||
SAA Manager | - | - | - | 14 | - | |||||||||||
EuroDekania | - | - | 1,801 | - | - | |||||||||||
EBC | - | - | - | - | 224 | |||||||||||
Mead Park Capital | - | - | - | - | 547 | |||||||||||
$ | 125 | $ | 24 | $ | 1,801 | $ | 27 | $ | 771 | |||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Management fee revenue | Net trading | Principal transactions and other income | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||
TBBK | $ | - | $ | 483 | $ | - | $ | - | $ | - | ||||||
Star Asia | 2,329 | - | -13,065 | - | - | |||||||||||
Star Asia Manager (1) | - | - | - | 158 | - | |||||||||||
Star Asia SPV | - | - | - | 1,287 | - | |||||||||||
Star Asia Opportunity | - | - | - | -5 | - | |||||||||||
Star Asia Capital Management | - | - | - | 145 | - | |||||||||||
Star Asia Special Situations Fund | - | - | 152 | - | - | |||||||||||
SAA Manager | - | - | - | 255 | - | |||||||||||
EuroDekania | - | - | 1,971 | - | - | |||||||||||
Deep Value | - | - | - | -13 | - | |||||||||||
EBC | - | - | - | - | 59 | |||||||||||
Mead Park Capital | - | - | - | - | 144 | |||||||||||
Other | - | - | - | 1 | - | |||||||||||
$ | 2,329 | $ | 483 | $ | -10,942 | $ | 1,828 | $ | 203 | |||||||
(1) Beginning March 1, 2013, Star Asia Manager was consolidated by the Company. Prior to that, it was treated as an equity method investment. See note A above. | ||||||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Management fee revenue | Net trading | Principal transactions and other income | Income / (loss) from equity method affiliates | Interest expense incurred | ||||||||||||
CBF | $ | 64 | $ | - | $ | - | $ | - | $ | - | ||||||
TBBK | - | 156 | - | - | - | |||||||||||
Star Asia | - | - | -7,274 | - | - | |||||||||||
Star Asia Manager (1) | - | - | - | 1,101 | - | |||||||||||
Star Asia SPV | - | - | - | 1,581 | - | |||||||||||
Star Asia Opportunity | - | - | - | 544 | - | |||||||||||
Star Asia Opportunity II | -382 | - | ||||||||||||||
Star Asia Capital Management | - | - | - | 504 | - | |||||||||||
Star Asia Special Situations Fund | - | - | 662 | - | - | |||||||||||
SAA Manager | - | - | - | -8 | - | |||||||||||
EuroDekania | 139 | - | 638 | - | - | |||||||||||
Deep Value | - | - | - | 1,712 | - | |||||||||||
$ | 203 | $ | 156 | $ | -5,974 | $ | 5,052 | $ | - | |||||||
(1) Beginning March 1, 2013, Star Asia Manager was consolidated by the Company. Prior to that, it was treated as an equity method investment. See note A above. | ||||||||||||||||
Recovered_Sheet3
Due from / Due to Related Parties (Tables) | 12 Months Ended | ||||||
Dec. 31, 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) | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
EuroDekania | $ | - | $ | 18 | |||
Star Asia and related entities (1) | - | 450 | |||||
CBF | - | 4 | |||||
Employees & other | 552 | 411 | |||||
Due from Related Parties | $ | 552 | $ | 883 | |||
(1) Related entities include Star Asia Capital Management and SAA Manager. | |||||||
Schedule_I_Condensed_Financial1
Schedule I Condensed Financial Information of Registrant (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||
Balance Sheet | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. | ||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. (PARENT COMPANY) | ||||||||||
Balance Sheet | ||||||||||
(Dollars in Thousands) | ||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||
Assets | ||||||||||
Cash | $ | 8 | $ | 7 | ||||||
Investment in IFMI, LLC | 79,816 | 85,401 | ||||||||
Other assets | 555 | 666 | ||||||||
Total assets | $ | 80,379 | $ | 86,074 | ||||||
Liabilities | ||||||||||
Accrued interest and other liabilities | $ | 317 | $ | 375 | ||||||
Deferred income taxes | 3,888 | 4,530 | ||||||||
Debt | 27,939 | 29,674 | ||||||||
Total liabilities | 32,144 | 34,579 | ||||||||
Stockholders’ Equity | ||||||||||
Preferred Stock: | 5 | 5 | ||||||||
Common Stock | 15 | 14 | ||||||||
Additional paid-in capital | 74,604 | 73,866 | ||||||||
Accumulated deficit | -25,617 | -21,754 | ||||||||
Accumulated other comprehensive loss | -772 | -636 | ||||||||
Total stockholders’ equity | 48,235 | 51,495 | ||||||||
Total liabilities and stockholders’ equity | $ | 80,379 | $ | 86,074 | ||||||
Statement of Operations | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. | ||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. (PARENT COMPANY) | ||||||||||
Statement of Operations | ||||||||||
(Dollars in Thousands) | ||||||||||
For the Year Ended December 31, 2014 | For the Year Ended December 31, 2013 | For the Year Ended December 31, 2012 | ||||||||
Revenues | ||||||||||
Equity in undistributed earnings / (loss) from IFMI, LLC | $ | 1,174 | $ | -11,502 | $ | 2,666 | ||||
Total revenues | 1,174 | -11,502 | 2,666 | |||||||
Operating income / (loss) | 1,174 | -11,502 | 2,666 | |||||||
Non-operating expense | ||||||||||
Interest expense | -4,401 | -4,001 | -4,397 | |||||||
Income / (loss) before income taxes | -3,227 | -15,503 | -1,731 | |||||||
Income tax (benefit) / expense | -642 | -2,185 | -763 | |||||||
Net income / (loss) | $ | -2,585 | $ | -13,318 | $ | -968 | ||||
Statement of cash flows | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. | ||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||
INSTITUTIONAL FINANCIAL MARKETS, INC. (PARENT COMPANY) | ||||||||||
Statement of Cash Flows | ||||||||||
(Dollars in Thousands) | ||||||||||
For the Year Ended December 31, 2014 | For the Year Ended December 31, 2013 | For the Year Ended December 31, 2012 | ||||||||
Operating activities | ||||||||||
Net income / (loss) | $ | -2,585 | $ | -13,318 | $ | -968 | ||||
Adjustments to reconcile net income / (loss) to net cash provided by / (used) in operating activities: | ||||||||||
Equity in undistributed earnings / (loss) from IFMI, LLC | -1,174 | 11,502 | -2,666 | |||||||
Distributions from / (contributions to) IFMI, LLC | 7,810 | -3,653 | 15,943 | |||||||
Other (income) / expense | - | 15 | -3 | |||||||
Amortization of discount of debt | 1,380 | 906 | 189 | |||||||
(Increase) / decrease in other assets | 111 | 32 | 246 | |||||||
Increase / (decrease) in accounts payable and other liabilities | -58 | 74 | -330 | |||||||
Increase / (decrease) in deferred income taxes | -642 | -2,144 | -826 | |||||||
Net cash provided by / (used in) operating activities | 4,842 | -6,586 | 11,585 | |||||||
Financing activities | ||||||||||
Repurchase and repayment of debt | -3,115 | -5,000 | -10,357 | |||||||
Issuance of debt | - | 8,248 | - | |||||||
Payments for deferred financing costs | - | -670 | - | |||||||
Cash used to net share settle equity awards | -64 | -110 | -135 | |||||||
Proceeds from issuance of stock, net | - | 5,051 | - | |||||||
Repurchase of stock | -384 | - | - | |||||||
Dividends paid to stockholders | -1,278 | -1,066 | -953 | |||||||
Net cash provided by / (used in) financing activities | -4,841 | 6,453 | -11,445 | |||||||
Net increase (decrease) in cash and cash equivalents | 1 | -133 | 140 | |||||||
Cash and cash equivalents, beginning of period | 7 | 140 | - | |||||||
Cash and cash equivalents, end of period | $ | 8 | $ | 7 | $ | 140 | ||||
Recovered_Sheet4
Organization and Nature of Operations (Details) (USD $) | 2 Months Ended | 10 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2013 | Dec. 31, 2013 | Feb. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2012 |
Securities [Line Items] | |||||
Assets under Management | $4,300,000 | ||||
CDOs [Member] | |||||
Securities [Line Items] | |||||
Assets under Management | $4,280,000 | ||||
Assets under management which are collateralized debt obligations percentage | 99.70% | ||||
PrinceRidge [Member] | |||||
Securities [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||||
Star Asia Manager [Member] | |||||
Securities [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 50.00% | 100.00% | 100.00% |
Recovered_Sheet5
Summary of Significant Accounting Policies (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary of Significant Accounting Policies [Abstract] | ||
Estimated debt in fair value | $39.30 | $40.20 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Investment Vehicles) (Details) | 2 Months Ended | 10 Months Ended | 12 Months Ended | ||
Feb. 28, 2013 | Dec. 31, 2013 | Feb. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | |
Star Asia [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage of equity method affiliate | 28.00% | 0.00% | |||
Star Asia Manager [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage of equity method affiliate | 50.00% | ||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 50.00% | 100.00% | 100.00% | ||
Star Asia SPV [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage of equity method affiliate | 0.00% | 0.00% | |||
Star Asia Opportunity [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage of equity method affiliate | 28.00% | 0.00% | |||
Star Asia Opportunity II [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage of equity method affiliate | 0.00% | 0.00% | |||
Star Asia Capital Management [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage of equity method affiliate | 33.00% | 0.00% | |||
Star Asia Special Situations Fund [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage of equity method affiliate | 2.00% | 0.00% | |||
SAA Manager [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage of equity method affiliate | 33.00% | 0.00% | |||
SAP GP [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage of equity method affiliate | 33.00% | 0.00% | |||
EuroDekania [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage of equity method affiliate | 17.00% | 17.00% | |||
Tiptree Financial Partners L.P. [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage of equity method affiliate | 1.00% | 1.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Furniture, Equipment, and Leasehold Improvements, Net) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Minimum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Maximum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Maximum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Redeemable and Non-Redeemable Non-Controlling Interest) (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
PrinceRidge [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
IFMI, LLC [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 73.80% | 73.20% |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Summary of Revenue Concentration) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
contract | contract | contract | |
Summary of Significant Accounting Policies [Abstract] | |||
CDO asset management revenue and related service | $10,999 | $13,664 | $21,729 |
Asset management | 14,496 | 19,239 | 23,172 |
Revenues | 55,750 | 57,517 | 95,240 |
CDO asset management % as compared to total asset management fees | 76.00% | 71.00% | 94.00% |
CDO asset management % as compared to total revenues | 20.00% | 24.00% | 23.00% |
Number of CDOs generating management fees | 14 | 21 | 25 |
Principal transactions and other income | $7,979 | ($6,668) | ($2,439) |
Principal transactions % as compared to total revenues | 14.00% | -12.00% | -3.00% |
Acquisitions_And_Private_Inves2
Acquisitions And Private Investment In IFMI (Narrative, Part I) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2013 |
Business Acquisition [Line Items] | |||
Goodwill | $7,992 | $11,113 | |
Star Asia Manager [Member] | |||
Business Acquisition [Line Items] | |||
Net Fair Value of IFMI Contribution | 1,855 | ||
Business Acquisition, Cost of Acquired Entity, Cash Paid | 425 | 425 | |
Business Combination, Consideration Transferred, Liabilities Incurred | 725 | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 50.00% | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 100.00% | ||
Pro forma revenue | 55,626 | 58,097 | |
Pro forma earnings (loss) attributable to IFMI | ($2,572) | ($13,293) |
Acquisitions_And_Private_Inves3
Acquisitions And Private Investment In IFMI (Narrative, Part II) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
item | item | |||
Private Placement [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 186,342 | 2,935,506 | 230,846 | |
Shares Issued, Price Per Share | 2 | |||
Proceeds from Issuance of Private Placement | $5,051,000 | |||
Stock Issued During Period, Value, New Issues | 5,498,000 | |||
Number of Directors | 8 | 10 | ||
Class of Warrant or Right, Warrants or Rights Exercisable | 0 | |||
Series C Junior Participating Preferred Stock | ||||
Private Placement [Line Items] | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 100 | |||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.0001 | |||
Class of Warrant or Right, Exercise Trigger, Percentage of Common Stock Owned by Individual or Affiliates | 4.95% | |||
Contingent convertible senior notes [Member] | ||||
Private Placement [Line Items] | ||||
Debt Instrument, Face Amount | 8,248,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
Mead Park Capital Partners And Cohen Brothers Financial [Member] | ||||
Private Placement [Line Items] | ||||
Proceeds from Issuance of Private Placement | 13,746,000 | |||
Mead Park Capital Partners L.L.C. [Member] | ||||
Private Placement [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 1,949,167 | |||
Mead Park Capital Partners L.L.C. [Member] | Contingent convertible senior notes [Member] | ||||
Private Placement [Line Items] | ||||
Debt Instrument, Face Amount | 5,848,000 | |||
Debt Instrument, Convertible, Number of Equity Instruments | 1,949,167 | |||
Debt Instrument, Convertible, Conversion Price | $3 | |||
Cohen Brothers Financial, L.L.C. [Member] | ||||
Private Placement [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 800,000 | |||
Cohen Brothers Financial, L.L.C. [Member] | Contingent convertible senior notes [Member] | ||||
Private Placement [Line Items] | ||||
Debt Instrument, Face Amount | $2,400,000 | |||
Debt Instrument, Convertible, Number of Equity Instruments | 800,000 | |||
Debt Instrument, Convertible, Conversion Price | $3 |
Acquisitions_And_Private_Inves4
Acquisitions And Private Investment In IFMI (Schedule Of Business Acquisitions) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||
Goodwill | $7,992 | $11,113 |
Star Asia Manager [Member] | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 1,104 | |
Receivables | 253 | |
Other assets | 150 | |
Accounts payable and other liabilities | -55 | |
Fair value of net assets acquired | 1,452 | |
Purchase price | 1,855 | |
Intangible Asset | $403 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year 3 months 18 days |
Sale_Of_Equity_Derivatives_Bro1
Sale Of Equity Derivatives Brokerage Business, Management Contracts, And Investment Advisory Agreements (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets under Management | 4,300,000 | |||
Equity Derivatives Brokerage Business [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue share allocation percentage | 4.50% | |||
Capital transaction allocation percentage | 10.00% | |||
Disposal Group, Including Discontinued Operation, Revenue | 7,842 | |||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 711 | |||
Star Asia And Related Entities [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
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, Gain (Loss) on Disposal | 78 | |||
European Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | 8,700 | |||
Proceeds from Divestiture of Businesses | 4,750 | |||
Disposal Group, Not Discontinued Operation, Contingent Consideration | 3,950 | |||
Disposal Group, Not Discontinued Operation, Contingent Consideration Arrangement, Measurement Period | 4 years | |||
Disposal Group, Including Discontinued Operation, Employees | 30 | |||
Assets under Management | 834,055 | |||
Assets under Management, Class as a Percentage of Total | 19.00% | |||
Disposal Group, Including Discontinued Operation, Revenue | 8,869 | |||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 1,858 | |||
Assets of Disposal Group, Including Discontinued Operation | 2,072 | |||
Munda CLO I [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets under Management | 723,381 | |||
Assets under Management, Class as a Percentage of Total | 17.00% | |||
CDOs [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets under Management | 4,280,000 |
Receivables_From_And_Payables_2
Receivables From And Payables To Brokers, Dealers, And Clearing Agencies (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables from and Payables to Brokers, Dealers, and Clearing Agencies [Abstract] | |||
Interest On Margin Payable | $447 | $627 | $1,456 |
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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables from Brokers-Dealers and Clearing Organizations [Abstract] | ||
Deposits with clearing organizations | $1,296 | $1,428 |
Receivable from clearing organizations | 340 | 418 |
Receivables from brokers, dealers, and clearing agencies | 1,636 | 1,846 |
Payables to Broker-Dealers and Clearing Organizations [Abstract] | ||
Unsettled regular way trades, net | 4,971 | 5,600 |
Margin payable | 43,042 | 25,111 |
Payables to brokers, dealers, and clearing agencies | $48,013 | $30,711 |
Other_Receivables_Details
Other Receivables (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Receivables [Abstract] | ||
Asset management fees | $3,165 | $3,886 |
New issue and advisory fees | 150 | |
Accrued interest and dividends receivable, net | 931 | 695 |
Notes receivable | 2,463 | 1,849 |
Revenue share receivable | 2,217 | 628 |
Other | 622 | 554 |
Other receivables | $9,398 | $7,762 |
Financial_Instruments_Narrativ
Financial Instruments (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financial Instruments [Abstract] | ||
Unrealized gain (losses) in net trading revenue | ($693) | $1,857 |
Financial_Instruments_Schedule
Financial Instruments (Schedule Of Trading Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments-trading | $126,748 | $117,618 |
U.S. government agency MBS and CMOs [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments-trading | 11,647 | 13,520 |
U.S. government agency debt securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments-trading | 25,785 | 32,213 |
RMBS [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments-trading | 358 | 1,584 |
U.S. Treasury securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments-trading | 1,131 | 764 |
CLO's [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments-trading | 952 | 186 |
Other ABS [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments-trading | 112 | 268 |
SBA loans [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments-trading | 29,681 | 27,719 |
Corporate bonds and redeemable preferred stock [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments-trading | 22,142 | 23,562 |
Foreign government bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments-trading | 88 | |
Municipal bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments-trading | 33,664 | 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 | 985 | 1,648 |
Equity securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Investments-trading | $291 | $36 |
Financial_Instruments_Schedule1
Financial Instruments (Schedule Of Trading Securities Sold, Not Yet Purchased) (Details) (USD $) | Dec. 31, 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 | $48,740 | $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 | 1,666 | 121 |
U.S. Treasury securities [Member] | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Trading securities sold, not yet purchased | 15,644 | 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 | 31,406 | 10,679 |
SBA loans [Member] | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Trading securities sold, not yet purchased | 4 | |
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 | 20 | 88 |
Certificates of deposit [Member] | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Trading securities sold, not yet purchased | $524 |
Financial_Instruments_Schedule2
Financial Instruments (Schedule Of Other Investments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ||
Other investments, Cost | $35,584 | $40,123 |
Other investments, Carrying Value | 28,399 | 26,877 |
Other investments, Unrealized Gain /(Loss) | -7,185 | -13,246 |
EuroDekania [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Carrying Value | 3,717 | 4,192 |
Star Asia [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Carrying Value | 17,104 | |
Star Asia Special Situations Fund [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Carrying Value | 2,747 | |
Tiptree Financial Partners L.P. [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Carrying Value | 2,472 | 2,282 |
Other Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Carrying Value | 33 | 33 |
CLO's [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Cost | 23,139 | 217 |
Other investments, Carrying Value | 21,518 | 35 |
Other investments, Unrealized Gain /(Loss) | -1,621 | -182 |
CDOs [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Cost | 193 | |
Other investments, Carrying Value | 11 | |
Other investments, Unrealized Gain /(Loss) | -182 | |
Equity securities [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Cost | 12,134 | 39,752 |
Other investments, Carrying Value | 6,222 | 26,358 |
Other investments, Unrealized Gain /(Loss) | -5,912 | -13,394 |
Equity securities [Member] | EuroDekania [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Cost | 6,503 | 8,778 |
Other investments, Carrying Value | 3,717 | 4,192 |
Other investments, Unrealized Gain /(Loss) | -2,786 | -4,586 |
Equity securities [Member] | Star Asia [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Cost | 23,304 | |
Other investments, Carrying Value | 17,104 | |
Other investments, Unrealized Gain /(Loss) | -6,200 | |
Equity securities [Member] | Star Asia Special Situations Fund [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Cost | 1,933 | |
Other investments, Carrying Value | 2,747 | |
Other investments, Unrealized Gain /(Loss) | 814 | |
Equity securities [Member] | Tiptree Financial Partners L.P. [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Cost | 5,455 | 5,561 |
Other investments, Carrying Value | 2,472 | 2,282 |
Other investments, Unrealized Gain /(Loss) | -2,983 | -3,279 |
Equity securities [Member] | Other Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Cost | 176 | 176 |
Other investments, Carrying Value | 33 | 33 |
Other investments, Unrealized Gain /(Loss) | -143 | -143 |
Residential Mortgage [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Cost | 118 | 154 |
Other investments, Carrying Value | 565 | 294 |
Other investments, Unrealized Gain /(Loss) | 447 | 140 |
Foreign currency forward contracts [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments, Carrying Value | 83 | 190 |
Other investments, Unrealized Gain /(Loss) | $83 | $190 |
Fair_Value_Disclosures_Narrati
Fair Value Disclosures (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of assets transfers out of level 3 | $2,834 | ||
Fair value, option, changes in fair value, gains (losses) | -531 | -11,399 | -6,284 |
Trading Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of assets transfers out of level 3 | 0 | ||
Alternative Investments [Member] | Tiptree Financial Partners L.P. [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 2,705 | ||
Fair value of assets transfers out of level 3 | $2,834 | $2,834 |
Fair_Value_Disclosures_Schedul
Fair Value Disclosures (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $) | Dec. 31, 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 | $126,748 | $117,618 |
Other investments, Carrying Value | 28,399 | 26,877 |
Trading securities sold, not yet purchased | 48,740 | 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 | 1,364 | 3,804 |
Other investments, Carrying Value | 2,578 | 213 |
Trading securities sold, not yet purchased | 15,644 | 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 | 125,384 | 113,628 |
Other investments, Carrying Value | 575 | 2,586 |
Trading securities sold, not yet purchased | 33,096 | 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 | 25,246 | 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 | 11,647 | 13,520 |
Trading securities sold, not yet purchased | 1,666 | 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 | 11,647 | 13,520 |
Trading securities sold, not yet purchased | 1,666 | 121 |
U.S. government agency debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments-trading | 25,785 | 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 | 25,785 | 32,168 |
RMBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments-trading | 358 | 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 | 358 | 1,584 |
U.S. Treasury securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments-trading | 1,131 | 764 |
Trading securities sold, not yet purchased | 15,644 | 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 | 1,131 | 764 |
Trading securities sold, not yet purchased | 15,644 | 38,066 |
CLO's [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments-trading | 952 | 186 |
Other investments, Carrying Value | 21,518 | 35 |
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 | 952 | |
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 | 112 | 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 | 112 | 268 |
SBA loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments-trading | 29,681 | 27,719 |
Trading securities sold, not yet purchased | 4 | |
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 | 29,681 | 27,719 |
Trading securities sold, not yet purchased | 4 | |
Corporate bonds and redeemable preferred stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments-trading | 22,142 | 23,562 |
Trading securities sold, not yet purchased | 31,406 | 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 | 22,142 | 20,589 |
Trading securities sold, not yet purchased | 31,406 | 10,679 |
Foreign government bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments-trading | 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 | 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 | 33,664 | 16,024 |
Trading securities sold, not yet purchased | 20 | 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 | 33,664 | 16,024 |
Trading securities sold, not yet purchased | 20 | 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 | 985 | 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 | 985 | 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 | 291 | 36 |
Other investments, Carrying Value | 6,222 | 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 | 233 | 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 | 58 | 20 |
Foreign currency forward contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments, Carrying Value | 83 | 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 | 83 | |
EuroDekania [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments, Carrying Value | 3,717 | 4,192 |
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 | 3,717 | 4,192 |
EuroDekania [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments, Carrying Value | 3,717 | 4,192 |
Star Asia [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments, Carrying Value | 17,104 | |
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 | |
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 | |
Tiptree Financial Partners L.P. [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments, Carrying Value | 2,472 | 2,282 |
Tiptree Financial Partners L.P. [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 | 2,472 | |
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 | 2,282 | |
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 | 2,472 | 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 | |
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 | |
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 | |
Other Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments, Carrying Value | 33 | 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 | 10 | 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 | 33 | 33 |
CLO's [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments, Carrying Value | 21,518 | |
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 | 21,518 | |
CDOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments, Carrying Value | 11 | 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 | 11 | 35 |
Residential Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments, Carrying Value | 565 | 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 | 565 | 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 |
Fair_Value_Disclosures_Schedul1
Fair Value Disclosures (Schedule Of Assets And Liabilities Measured With Level 3 Inputs) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ||
Level 3 inputs, Beginning balance | $37,637 | |
Transfers out of Level 3 | -2,834 | |
Accretion of income | ||
Purchases | 1,273 | |
Sales | -210 | |
Level 3 inputs, Ending balance | 24,078 | |
Change in unrealized gains /(losses) for the period included in earnings | -11,788 | |
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 | -11,788 | |
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 | 186 | 295 |
Transfers out of Level 3 | 0 | |
Accretion of income | ||
Purchases | 37 | |
Sales | -183 | -441 |
Level 3 inputs, Ending balance | 186 | |
Change in unrealized gains /(losses) for the period included in earnings | -111 | |
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 | -3 | 295 |
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 | 24,078 | |
Accretion of income | 1,577 | |
Purchases | 25,288 | |
Sales | -25,852 | |
Level 3 inputs, Ending balance | 25,246 | |
Change in unrealized gains /(losses) for the period included in earnings | 178 | |
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 | 155 | |
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 | 24,043 | 37,560 |
Transfers out of Level 3 | -2,834 | |
Accretion of income | ||
Purchases | 1,273 | |
Sales | -22,204 | -210 |
Level 3 inputs, Ending balance | 3,717 | 24,043 |
Change in unrealized gains /(losses) for the period included in earnings | 1,800 | -11,746 |
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 | 1,878 | -11,746 |
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 | 4,192 | 2,054 |
Accretion of income | ||
Purchases | 971 | |
Sales | -2,275 | |
Level 3 inputs, Ending balance | 3,717 | 4,192 |
Change in unrealized gains /(losses) for the period included in earnings | 1,800 | 1,167 |
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 | 1,800 | 1,167 |
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 | 17,104 | 30,169 |
Accretion of income | ||
Sales | -17,182 | |
Level 3 inputs, Ending balance | 17,104 | |
Change in unrealized gains /(losses) for the period included in earnings | -13,065 | |
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 | 78 | -13,065 |
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 | |
Transfers out of Level 3 | -2,834 | -2,834 |
Accretion of income | ||
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 | 2,747 | 2,503 |
Accretion of income | ||
Purchases | 302 | |
Sales | -2,747 | -210 |
Level 3 inputs, Ending balance | 2,747 | |
Change in unrealized gains /(losses) for the period included in earnings | 152 | |
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 | 152 | |
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 | ||
Accretion of income | 1,577 | |
Purchases | 25,288 | |
Sales | -3,648 | |
Level 3 inputs, Ending balance | 21,518 | |
Change in unrealized gains /(losses) for the period included in earnings | -1,622 | |
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 | -1,699 | |
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 | 77 | |
Accretion of income | ||
Level 3 inputs, Ending balance | 11 | 35 |
Change in unrealized gains /(losses) for the period included in earnings | -42 | |
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 | -24 | -42 |
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 | 186 | 295 |
Accretion of income | ||
Sales | -183 | -191 |
Level 3 inputs, Ending balance | 186 | |
Change in unrealized gains /(losses) for the period included in earnings | -111 | |
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 | -3 | 82 |
SBA loans [Member] | Trading Securities [Member] | ||
Schedule of additional information about assets and liabilities measured at fair value on a recurring basis level 3 inputs | ||
Accretion of income | ||
Purchases | 37 | |
Sales | -250 | |
SBA loans [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 | $213 |
Fair_Value_Disclosures_Quantit
Fair Value Disclosures (Quantitative Information About Level 3 Fair Value Measurements) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Star Asia [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate on debt | 12.40% | |
Star Asia [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate on debt | 18.30% | |
Significant Unobservable Inputs (Level 3) [Member] | Star Asia [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 21,518 | 17,104 |
Yield | 16.20% | |
Significant Unobservable Inputs (Level 3) [Member] | Star Asia [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Relative fair value of assets sold | 77.30% | |
Significant Unobservable Inputs (Level 3) [Member] | Star Asia Special Situations Fund [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate on debt | 1.00% | |
Significant Unobservable Inputs (Level 3) [Member] | CLO's [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Default rate | 1.00% | |
Alternative Investments [Member] | Star Asia [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Relative fair value of assets sold | 74.90% | |
Alternative Investments [Member] | Star Asia [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Relative fair value of assets sold | 79.10% | |
Alternative Investments [Member] | Star Asia Special Situations Fund [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 2,747 | |
Relative fair value of assets sold | 12.40% | |
Alternative Investments [Member] | Star Asia Special Situations Fund [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Relative fair value of assets sold | 12.00% | |
Alternative Investments [Member] | Star Asia Special Situations Fund [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Relative fair value of assets sold | 12.70% | |
Alternative Investments [Member] | CLO's [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Duration | 2 years 7 months 6 days | |
Alternative Investments [Member] | CLO's [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Duration | 4 years 6 months | |
Alternative Investments [Member] | CLO's [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Duration | 4 years 1 month 6 days |
Fair_Value_Disclosures_Fair_Va
Fair Value Disclosures (Fair Value, Investments, Entities That Calculate Net Asset Value Per Share) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Other investments, at fair value | $28,399 | $26,877 |
Other Investment Vehicles [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Other investments, at fair value | 3,717 | 24,043 |
EuroDekania [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Other investments, at fair value | 3,717 | 4,192 |
Redemption frequency | N/A | N/A |
Redemption notice period | N/A | N/A |
EuroDekania [Member] | Other Investment Vehicles [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Other investments, at fair value | 3,717 | 4,192 |
Star Asia [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Other investments, at fair value | 17,104 | |
Redemption frequency | N/A | |
Redemption notice period | N/A | |
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 | |
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 | |
Unfunded commitments | 321 | |
Redemption frequency | N/A | |
Redemption notice period | N/A | |
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 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $318,463 | $294,000 |
Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 318,463 | 284,808 |
EuroDollar futures contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 0 | 0 |
Other Contract [Member] | ||
Derivative [Line Items] | ||
Market Value Underlying, Net | 0 | 0 |
Other Contract [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Market Value Underlying, Net | 0 | |
Other Contract [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Market Value Underlying, Net | $3,517 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Balance Sheet Information) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | $343 | $312 |
Other Investment at Fair Value [Member] | Foreign currency forward contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 83 | 190 |
Investments-trading [Member] | TBAs [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 1,928 | 188 |
Investments-trading [Member] | Other Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 2 | |
Trading securities sold, not yet purchased [Member] | TBAs [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | -1,666 | -66 |
Trading securities sold, not yet purchased [Member] | Other Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | ($4) |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Statement Of Operations Information) (Details) (Not Designated as Hedging Instruments [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | |||
Derivative financial instruments, net gain (loss) recognized | $2,011 | $3,413 | $1,195 |
Foreign currency forward contracts [Member] | |||
Derivative [Line Items] | |||
Derivative financial instruments, net gain (loss) recognized | -167 | 260 | 40 |
EuroDollar futures contracts [Member] | |||
Derivative [Line Items] | |||
Derivative financial instruments, net gain (loss) recognized | -30 | ||
Other Contract [Member] | |||
Derivative [Line Items] | |||
Derivative financial instruments, net gain (loss) recognized | -2 | ||
TBAs [Member] | |||
Derivative [Line Items] | |||
Derivative financial instruments, net gain (loss) recognized | $2,180 | $3,153 | $1,185 |
Collateralized_Securities_Tran1
Collateralized Securities Transactions (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Brokers and Dealers [Abstract] | ||
Securities reverse repurchase agreements | $101,675 | $29,395 |
Fair value of securities received as collateral under reverse repurchase agreements | 107,931 | 29,575 |
Securities sold under agreements to repurchase | 101,856 | 28,748 |
Fair value of securities pledged as collateral under repurchase agreements | $108,065 | $28,591 |
Goodwill_Narrative_Details
Goodwill (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2007 | Dec. 31, 2012 |
Goodwill [Line Items] | ||||
Goodwill impairment charge | $3,121 | |||
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 | 0 | |||
AFN [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charge | 0 | 0 | 0 | |
JVB Holdings [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charge | $0 | $0 | $0 |
Goodwill_Schedule_Of_Goodwill_
Goodwill (Schedule Of Goodwill) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill [Line Items] | ||
Goodwill | $7,992 | $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_Sheet6
Other Assets And Accounts Payable And Other Liabilities (Schedule Of Other Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of other assets | ||
Deferred costs | $1,665 | $644 |
Prepaid expenses | 1,835 | 2,226 |
Prepaid income taxes | 146 | |
Security deposits | 2,417 | 2,492 |
Miscellaneous other assets | 190 | 146 |
Cost method investment | 11 | 235 |
Furniture, equipment and leasehold improvements, net | 1,150 | 2,054 |
Intangible assets | 166 | 483 |
Equity method affiliates | -31 | |
Other assets | $7,434 | $8,395 |
Other_Assets_and_Accounts_Paya2
Other Assets and Accounts Payable and Other Liabilities (Schedule Of Accounts Payable And Other Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of accounts payable and other liabilities | ||
Accounts payable | $512 | $738 |
Rent payable | 626 | 1,058 |
Accrued interest payable | 318 | 376 |
Accrued interest on securities sold, not yet purchased | 626 | 255 |
Payroll taxes payable | 754 | 1,055 |
Accrued income taxes | 63 | |
Other accrued expense | 2,204 | 4,994 |
Accounts payable and other liabilities | $5,103 | $8,476 |
Furniture_Equipment_And_Leaseh2
Furniture, Equipment, And Leasehold Improvements, Net (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Write-off of depreciated assets | $895 | ||
Depreciation and amortization | 1,103 | 1,405 | 1,305 |
Depreciation | $1,078 | $1,154 | $1,305 |
Furniture_Equipment_And_Leaseh3
Furniture, Equipment, And Leasehold Improvements, Net (Schedule Of Furniture, Equipment, And Leasehold Improvements) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Furniture, Equipment, and Leasehold Improvements, Gross | 7,169 | $8,291 |
Accumulated depreciation | -6,019 | -6,237 |
Furniture, equipment, and leasehold improvements, net | 1,150 | 2,054 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, Equipment, and Leasehold Improvements, Gross | 2,816 | 3,169 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, Equipment, and Leasehold Improvements, Gross | 4,353 | $5,122 |
Minimum [Member] | Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum [Member] | Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years |
Recovered_Sheet7
Investments in Equity Method Affiliates (Narrative) (Details) (Star Asia Manager [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Star Asia Manager [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Recovered_Sheet8
Investments in Equity Method Affiliates (Schedule Of Investments In Equity Method Affiliates) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Equity Method Investments [Line Items] | |||
Begining Balance | ($31) | $1,910 | $6,076 |
Investments / advances | 30 | 4,716 | |
Distributions/repayments | -67 | -3,094 | -12,093 |
Distributions/repayments | -67 | -3,094 | -12,093 |
Reorganization | -1,841 | ||
Acquisition | -705 | ||
Earnings / (loss) realized | 27 | 1,828 | 5,052 |
Sale | 71 | ||
Ending Balance | -31 | 1,910 | |
Star Asia Manager [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Begining Balance | 547 | 1,046 | |
Distributions/repayments | -1,600 | ||
Acquisition | -705 | ||
Earnings / (loss) realized | 158 | 1,101 | |
Ending Balance | 547 | ||
Deep Value GP [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Begining Balance | 7 | 21 | |
Distributions/repayments | -7 | ||
Earnings / (loss) realized | -14 | ||
Ending Balance | 7 | ||
Deep Value GP II [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Begining Balance | 39 | 33 | |
Distributions/repayments | -26 | -1,720 | |
Earnings / (loss) realized | -13 | 1,726 | |
Ending Balance | 39 | ||
Star Asia SPV [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Begining Balance | 1,395 | 466 | |
Investments / advances | 10 | ||
Distributions/repayments | -2,682 | -662 | |
Earnings / (loss) realized | 1,287 | 1,581 | |
Ending Balance | 1,395 | ||
Star Asia Opportunity [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Begining Balance | 17 | 22 | 4,460 |
Distributions/repayments | -17 | -4,982 | |
Earnings / (loss) realized | -5 | 544 | |
Ending Balance | 17 | 22 | |
Star Asia Capital Management [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Begining Balance | -81 | -92 | 50 |
Investments / advances | 6 | ||
Distributions/repayments | -15 | -134 | -652 |
Earnings / (loss) realized | 13 | 145 | 504 |
Sale | 83 | ||
Ending Balance | -81 | -92 | |
Star Asia Opportunity II [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments / advances | 4,700 | ||
Distributions/repayments | -2,477 | ||
Reorganization | -1,841 | ||
Earnings / (loss) realized | -382 | ||
SAA Manager [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Begining Balance | 12 | -8 | |
Investments / advances | 10 | ||
Distributions/repayments | -25 | -245 | |
Earnings / (loss) realized | 14 | 255 | -8 |
Sale | -1 | ||
Ending Balance | 12 | -8 | |
Duart Capital and Other [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Begining Balance | 21 | ||
Investments / advances | 20 | ||
Distributions/repayments | -10 | ||
Earnings / (loss) realized | 1 | ||
Sale | -11 | ||
Ending Balance | $21 |
Investments_in_Equity_Method_A2
Investments in Equity Method Affiliates (Summarized Data Of Equity Method Investees) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Investments in Equity Method Affiliates [Abstract] | |||
Total Assets | $370,388 | ||
Liabilities | 144,578 | ||
Equity attributable to the investees | 225,810 | ||
Non-controlling interest | |||
Liabilities & Equity | 370,388 | ||
Net income / (loss) | 28,885 | 2,248 | |
Net income / (loss) attributable to the investees | $29,501 | $2,667 |
Variable_Interest_Entities_Sch
Variable Interest Entities (Schedule Of Variable Interest Entities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Other Receivables | $1,902 | $2,323 |
Other Investments, at fair value | 21,528 | 35 |
Maximum Exposure to loss in non-consolidated VIEs | 23,430 | 2,358 |
Managed Variable Interest Entity [Member] | ||
Variable Interest Entity [Line Items] | ||
Other Receivables | 1,829 | 2,239 |
Maximum Exposure to loss in non-consolidated VIEs | 1,829 | 2,239 |
Third-Party Managed Variable Interest Entity [Member] | ||
Variable Interest Entity [Line Items] | ||
Other Receivables | 73 | 84 |
Other Investments, at fair value | 21,528 | 35 |
Maximum Exposure to loss in non-consolidated VIEs | $21,601 | $119 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Oct. 31, 2011 | Dec. 16, 2009 | Jul. 31, 2011 | |
Debt Instrument [Line Items] | ||||||||
Repayments of Debt | $3,121,000 | $6,072,000 | $16,270,000 | |||||
Gain (Loss) on Repurchase of Debt Instrument | -15,000 | 86,000 | ||||||
Fair value of common securities | 0 | |||||||
Payments for deferred financing costs | 670,000 | |||||||
Amortization of Financing Costs | 111,000 | 26,000 | 0 | |||||
Subordinated Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 12.00% | |||||||
Interest paid currently, percentage | 9.00% | |||||||
Interest paid in kind, percentage | 3.00% | |||||||
Repayments of Debt | 1,177,000 | |||||||
Junior subordinated debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | 1,489,000 | |||||||
Stated interest rate | 9.50% | |||||||
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust | 48,125,000 | 49,614,000 | ||||||
Long-term Debt, Gross | 0 | |||||||
Junior subordinated debt [Member] | VIE trusts [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust | 48,125,000 | |||||||
10.50% Contingent convertible senior notes due 2027 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 10.50% | |||||||
Proceeds from Issuance of Debt | 8,121,000 | |||||||
7.625% Contingent Convertible Senior Notes Due 2027 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | 7,621,000 | |||||||
Debt Instrument Principal Exchanged Amount | 500,000 | |||||||
Alesco Capital Trust I [Member] | Junior subordinated debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | 870,000 | |||||||
Stated interest rate | 4.26% | |||||||
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust | 28,125,000 | |||||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | |||||||
Shares of common securities of variable interest entity trusts issued | 870 | |||||||
Alesco Capital Trust I [Member] | Junior subordinated debt [Member] | VIE trusts [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust | 28,995,000 | |||||||
Sunset Financial Statutory Trust I [Member] | Junior subordinated debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | 619,000 | |||||||
Stated interest rate | 4.41% | |||||||
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust | 20,000,000 | |||||||
Debt Instrument, Basis Spread on Variable Rate | 4.15% | |||||||
Shares of common securities of variable interest entity trusts issued | 619 | |||||||
Sunset Financial Statutory Trust I [Member] | Junior subordinated debt [Member] | VIE trusts [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust | 20,619,000 | |||||||
Star Asia Manager Note Payable [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | 725,000 | |||||||
Stated interest rate | 2.75% | |||||||
8.00% Contingent Convertible Senior Notes Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | 8,248,000 | |||||||
Stated interest rate | 8.00% | |||||||
Debt Instrument, Convertible, Conversion Price | $3 | |||||||
Debt Instrument, Convertible, Number of Equity Instruments | 2,749,167 | |||||||
Debt Instrument, Convertible, Share Price | $3 | |||||||
Debt Instrument, Dividend Threshold for Interest to be Payable In-Kind | $0.02 | |||||||
Promissory Notes Issued In Connection With the Repurchase of Mandatorily Redeemable Equity Interests [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | 4,824,000 | |||||||
Stated interest rate | 5.00% | |||||||
Star Asia Manager [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Cash consideration | $425,000 | $425,000 |
Debt_Debt_Outstanding_Details
Debt (Debt Outstanding) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 16, 2009 | |
Debt Instrument [Line Items] | |||
Long-term Debt | $27,939,000 | $29,674,000 | |
Contingent convertible senior notes [Member] | |||
Debt Instrument [Line Items] | |||
Current Outstanding Par | 8,248,000 | ||
Long-term Debt | 8,248,000 | 11,363,000 | |
Interest Rate Terms | 8.00% | ||
Junior subordinated debt [Member] | |||
Debt Instrument [Line Items] | |||
Current Outstanding Par | 1,489,000 | ||
Junior subordinated notes | 48,125,000 | 49,614,000 | |
Long-term Debt | 19,691,000 | 18,311,000 | |
Interest Rate Terms | 9.50% | ||
Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Terms | 12.00% | ||
10.50% Contingent convertible senior notes due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 3,115,000 | ||
Interest Rate Terms | 10.50% | ||
Debt Instrument, Interest Rate at Period End | 10.50% | ||
Maturity | 20-May-14 | ||
8.00% Contingent Convertible Senior Notes Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Current Outstanding Par | 8,248,000 | ||
Long-term Debt | 8,248,000 | 8,248,000 | |
Interest Rate Terms | 8.00% | ||
Debt Instrument, Interest Rate at Period End | 8.00% | ||
Maturity | 25-Sep-18 | ||
Alesco Capital Trust I [Member] | Junior subordinated debt [Member] | |||
Debt Instrument [Line Items] | |||
Current Outstanding Par | 870,000 | ||
Junior subordinated notes | 28,125,000 | ||
Long-term Debt | 11,499,000 | 10,697,000 | |
Interest Rate Terms | 4.26% | ||
Debt Instrument, Interest Rate at Period End | 4.26% | ||
Maturity | 30-Jul-37 | ||
Sunset Financial Statutory Trust I [Member] | Junior subordinated debt [Member] | |||
Debt Instrument [Line Items] | |||
Current Outstanding Par | 619,000 | ||
Junior subordinated notes | 20,000,000 | ||
Long-term Debt | 8,192,000 | 7,614,000 | |
Interest Rate Terms | 4.41% | ||
Debt Instrument, Interest Rate at Period End | 4.41% | ||
Maturity | 30-Mar-35 | ||
Star Asia Manager Note Payable [Member] | |||
Debt Instrument [Line Items] | |||
Current Outstanding Par | $725,000 | ||
Interest Rate Terms | 2.75% |
Redeemable_NonControlling_Inte1
Redeemable Non-Controlling Interest (Temporary Equity) And Mandatorily Redeemable Equity Interests (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Redeemable Noncontrolling Interest [Line Items] | |||
Redemption of redeemable non-controlling interest, net | $789 | $6,152 | |
Distributions Mandatorily Redeemable Equity Interests | 86 | 3,723 | |
Reclassification to Mandatorily Redeemable Equity Interests | 6,446 | ||
Redeemable equity interests | 0 | 0 | |
Mandatorily redeemable equity interests | 0 | 0 | |
PrinceRidge [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Redemption of redeemable non-controlling interest, net | 6,172 | ||
PrinceRidge [Member] | Employees [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Proceeds from Noncontrolling Interests | $20 |
Permanent_Equity_Preferred_Sto
Permanent Equity (Preferred Stock) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | |||
Mr. Cohen [Member] | |||
Permanent Equity [Line Items] | |||
Voting Power, Percentage | 24.90% | ||
Series C Junior Participating Preferred Stock | |||
Permanent Equity [Line Items] | |||
Preferred Stock, Par or Stated Value Per Share | $0.00 | ||
Preferred Stock, Shares Authorized | 10,000 | 10,000 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Preferred Stock, Voting Rights per Share | 10,000 | ||
Preferred Stock, Liquidation Preference Per Share | $100,000 | ||
Series E Preferred Stock [Member] | |||
Permanent Equity [Line Items] | |||
Preferred Stock, Par or Stated Value Per Share | $0.00 | 0.001 | |
Preferred Stock, Shares Authorized | 4,983,557 | 4,983,557 | |
Preferred Stock, Shares Outstanding | 4,983,557 | 4,983,557 | |
Preferred Stock, Shares Issued | 4,983,557 | 4,983,557 |
Permanent_Equity_Stockholder_R
Permanent Equity (Stockholder Rights Plan) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Permanent Equity [Line Items] | |
Class of Warrant or Right, Warrants or Rights Exercisable | 0 |
Series C Junior Participating Preferred Stock | |
Permanent Equity [Line Items] | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | 100 |
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.0001 |
Class of Warrant or Right, Exercise Trigger, Percentage of Common Stock Owned by Individual or Affiliates | 4.95% |
Permanent_Equity_Retirement_of
Permanent Equity (Retirement of Treasury Stock) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2012 |
Equity, Class of Treasury Stock [Line Items] | ||||
Purchase of common stock for treasury | 116,595 | |||
Treasury Stock Acquired, Average Cost Per Share | $1.77 | $2.07 | ||
Retirement of treasury stock | 100,000 | 100,000 | 200,000 | 50,400 |
Retained Earnings/ (Accumulated Deficit) [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury Stock, Retired, Cost Method, Amount | 328 | |||
Treasury Stock [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury Stock, Retired, Cost Method, Amount | -328 | |||
Retirement of treasury stock | -50,400 |
Permanent_Equity_Dividends_and
Permanent Equity (Dividends and Distributions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Total Stockholders' Equity [Member] | |||
Class of Stock [Line Items] | |||
Dividends | $1,278 | $1,066 | $953 |
Non-controlling Interest [Member] | |||
Class of Stock [Line Items] | |||
Dividends | $419 | $431 | $420 |
Permanent_Equity_Future_Conver
Permanent Equity (Future Conversion / Redemption of Operating LLC Units) (Details) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Permanent Equity [Line Items] | ||||
Vesting of units | 132,450 | 90,135 | ||
Membership Units Received Net Of Surrenders | 2,749,167 | |||
Stock Issued During Period, Shares, New Issues | 186,342 | 2,935,506 | 230,846 | |
Institutional Financial Markets, Inc. [Member] | ||||
Permanent Equity [Line Items] | ||||
Vesting of units | 132,450 | 90,135 | ||
IFMI, LLC [Member] | ||||
Permanent Equity [Line Items] | ||||
Common Unit, Outstanding | 20,341,309 | 19,895,748 | 16,457,628 | 15,500,011 |
Vesting of units | 186,342 | 2,749,167 | ||
Stock Redeemed or Called During Period, Shares | -186,339 | |||
Unit Issuance And Surrender Agreement [Member] | IFMI, LLC [Member] | ||||
Permanent Equity [Line Items] | ||||
Membership Units Received Net Of Surrenders | 459,219 | 502,614 | 302,934 | |
JVB Holdings Agreement [Member] | ||||
Permanent Equity [Line Items] | ||||
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 | 0 | 186,342 | 559,020 | |
JVB Holdings Agreement [Member] | IFMI, LLC [Member] | ||||
Permanent Equity [Line Items] | ||||
Membership Units Received Net Of Surrenders | 705,083 | |||
2009 Equity Award Plan [Member] | ||||
Permanent Equity [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
2009 Equity Award Plan [Member] | IFMI, LLC [Member] | ||||
Permanent Equity [Line Items] | ||||
Vesting of units | 116,595 | |||
Stock Redeemed or Called During Period, Shares | 44,507 | |||
Units Not Exchanged [Member] | IFMI, LLC [Member] | ||||
Permanent Equity [Line Items] | ||||
Vesting of units | 72,088 | |||
Daniel G. Cohen and Other Unit Holders [Member] | IFMI, LLC [Member] | ||||
Permanent Equity [Line Items] | ||||
Common Unit, Outstanding | 5,324,090 | |||
Daniel G. Cohen [Member] | IFMI, LLC [Member] | ||||
Permanent Equity [Line Items] | ||||
Common Unit, Outstanding | 4,983,557 | 4,983,557 | 4,983,557 | 4,983,557 |
Institutional Financial Markets, Inc. [Member] | IFMI, LLC [Member] | ||||
Permanent Equity [Line Items] | ||||
Common Unit, Outstanding | 15,017,219 | 14,571,658 | 11,133,538 | 10,248,009 |
Vesting of units | 2,749,167 | |||
Stock Redeemed or Called During Period, Shares | -186,342 | -230,846 | ||
Institutional Financial Markets, Inc. [Member] | Unit Issuance And Surrender Agreement [Member] | IFMI, LLC [Member] | ||||
Permanent Equity [Line Items] | ||||
Membership Units Received Net Of Surrenders | 459,219 | 502,614 | ||
Institutional Financial Markets, Inc. [Member] | JVB Holdings Agreement [Member] | IFMI, LLC [Member] | ||||
Permanent Equity [Line Items] | ||||
Membership Units Received Net Of Surrenders | 705,083 | |||
Other Unit Holders [Member] | IFMI, LLC [Member] | ||||
Permanent Equity [Line Items] | ||||
Common Unit, Outstanding | 340,533 | 340,533 | 340,533 | 268,445 |
Vesting of units | 186,342 | |||
Stock Redeemed or Called During Period, Shares | 186,342 | -186,339 | 230,846 | |
Other Unit Holders [Member] | Unit Issuance And Surrender Agreement [Member] | IFMI, LLC [Member] | ||||
Permanent Equity [Line Items] | ||||
Membership Units Received Net Of Surrenders | 302,934 |
Permanent_Equity_Schedule_Of_U
Permanent Equity (Schedule Of Unrestricted Common Stock Activity) (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Stock [Line Items] | |||||
Balance, Shares | 14,809,705 | 11,552,551 | 12,679,717 | ||
Issuance of common stock | 186,342 | 2,935,506 | 230,846 | ||
Shares issued in connection with the redemption of Operating LLC units | 158,438 | 408,079 | 428,984 | ||
Vesting of shares | 132,450 | 90,135 | |||
Shares withheld for employee taxes | -37,458 | -71,583 | -162,048 | ||
Retirement of common stock | -100,000 | -100,000 | |||
Forfeiture / cancellation of restricted stock | -32,258 | -104,983 | -1,508,353 | ||
Purchase of common stock for treasury | -116,595 | ||||
Retirement of treasury stock | -100,000 | -100,000 | -200,000 | -50,400 | |
Balance, Shares | 15,017,219 | 15,017,219 | 14,809,705 | 11,552,551 | |
Institutional Financial Markets, Inc. [Member] | |||||
Class of Stock [Line Items] | |||||
Vesting of shares | 132,450 | 90,135 | |||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Balance, Shares | 14,398,579 | 10,794,725 | 10,132,497 | ||
Issuance of common stock | 186,342 | 2,935,506 | 230,846 | ||
Vesting of shares | 511,318 | 739,931 | 643,830 | ||
Shares withheld for employee taxes | -37,458 | -71,583 | -162,048 | ||
Retirement of treasury stock | -200,000 | -50,400 | |||
Balance, Shares | 14,858,781 | 14,858,781 | 14,398,579 | 10,794,725 | |
Deferred Compensation Share Based Payments [Member] | |||||
Class of Stock [Line Items] | |||||
Balance, Shares | 411,126 | 757,826 | 2,597,620 | ||
Shares issued in connection with the redemption of Operating LLC units | 158,438 | 408,079 | 428,984 | ||
Vesting of shares | -378,868 | -649,796 | -643,830 | ||
Forfeiture / cancellation of restricted stock | -32,258 | -104,983 | -1,508,353 | ||
Purchase of common stock for treasury | -116,595 | ||||
Balance, Shares | 158,438 | 158,438 | 411,126 | 757,826 | |
Treasury Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Balance, Shares | -50,400 | ||||
Retirement of treasury stock | 50,400 |
Permanent_Equity_Operating_LLC
Permanent Equity (Operating LLC Membership Units) (Details) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | |
Permanent Equity [Line Items] | ||||||
Membership Units Received Net Of Surrenders | 2,749,167 | |||||
Retirement of treasury stock | -100,000 | -100,000 | -200,000 | -50,400 | ||
IFMI, LLC [Member] | ||||||
Permanent Equity [Line Items] | ||||||
Balance, Shares | 19,895,748 | 15,500,011 | 16,457,628 | |||
Redemption of Operating LLC Units | 186,339 | |||||
Retirement of treasury stock | -200,000 | -50,400 | ||||
Balance, Shares | 20,341,309 | 20,341,309 | 16,457,628 | 19,895,748 | ||
IFMI, LLC [Member] | Institutional Financial Markets, Inc. [Member] | ||||||
Permanent Equity [Line Items] | ||||||
Balance, Shares | 14,571,658 | 10,248,009 | 11,133,538 | |||
Redemption of Operating LLC Units | 186,342 | 230,846 | ||||
Retirement of treasury stock | -200,000 | -50,400 | 186,339 | |||
Balance, Shares | 15,017,219 | 15,017,219 | 11,133,538 | 14,571,658 | ||
IFMI, LLC [Member] | Daniel G. Cohen [Member] | ||||||
Permanent Equity [Line Items] | ||||||
Balance, Shares | 4,983,557 | |||||
Balance, Shares | 4,983,557 | 4,983,557 | 4,983,557 | 4,983,557 | 4,983,557 | |
IFMI, LLC [Member] | Other Unit Holders [Member] | ||||||
Permanent Equity [Line Items] | ||||||
Balance, Shares | 340,533 | 268,445 | 340,533 | |||
Redemption of Operating LLC Units | -186,342 | -230,846 | 186,339 | |||
Retirement of treasury stock | -186,339 | |||||
Balance, Shares | 340,533 | 340,533 | 340,533 | 340,533 | ||
IFMI, LLC [Member] | Unit Issuance And Surrender Agreement [Member] | ||||||
Permanent Equity [Line Items] | ||||||
Membership Units Received Net Of Surrenders | 459,219 | 302,934 | 502,614 | |||
IFMI, LLC [Member] | Unit Issuance And Surrender Agreement [Member] | Institutional Financial Markets, Inc. [Member] | ||||||
Permanent Equity [Line Items] | ||||||
Membership Units Received Net Of Surrenders | 459,219 | 502,614 | ||||
IFMI, LLC [Member] | Unit Issuance And Surrender Agreement [Member] | Other Unit Holders [Member] | ||||||
Permanent Equity [Line Items] | ||||||
Membership Units Received Net Of Surrenders | 302,934 | |||||
IFMI, LLC [Member] | JVB Holdings Agreement [Member] | ||||||
Permanent Equity [Line Items] | ||||||
Membership Units Received Net Of Surrenders | 705,083 | |||||
IFMI, LLC [Member] | JVB Holdings Agreement [Member] | Institutional Financial Markets, Inc. [Member] | ||||||
Permanent Equity [Line Items] | ||||||
Membership Units Received Net Of Surrenders | 705,083 |
Permanent_Equity_Schedule_Of_E
Permanent Equity (Schedule Of Effects Of Changes In Ownership Interest Subsidiary) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Permanent Equity [Abstract] | |||
Net income / (loss) attributable to IFMI | ($2,585) | ($13,318) | ($968) |
Increase in IFMI's paid in capital for the acquisition / (surrender) of additional units of consolidated subsidiary, net | 215 | 2,764 | 928 |
Changes from net income / (loss) attributable to IFMI and transfers (to) from non-controlling interest | ($2,370) | ($10,554) | ($40) |
EquityBased_Compensation_Narra
Equity-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $1,404 | |||
Unrecognized compensation expense, period for recognition | 2 years | |||
Weighted average grant date fair value for options granted | $0.70 | $0.70 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | 68.10% | 68.50% | ||
Expected dividend rate | 3.42% | 3.49% | ||
Expected lives | 3 years 6 months | 4 years | ||
Risk free rate | 0.74% | 0.96% | ||
2009 Equity Award Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
2009 Equity Award Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vested during the period | 116,595 | |||
JVB Holdings Agreement [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Unvested awards | 0 | 186,342 | 559,020 | |
Granted, Weighted average grant date fair value | $4.89 | |||
Fair Value of awards which vested during the period | 435 | 233 | ||
2006 / 2010 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair Value of awards which vested during the period | $1,086 | $1,667 | 947 | |
2006 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | 1,239,488 | |||
Service Based Vesting [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested awards | 158,438 | 311,300 | 427,057 | 1,574,064 |
Awards vested during the period | 311,300 | 522,008 | 543,830 | |
Granted, Weighted average grant date fair value | $2.43 | $1.98 | 1.43 | |
Service Based Vesting [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested awards | 132,450 | 172,585 | 40,135 | |
Awards vested during the period | 132,450 | 40,135 | ||
Granted, Weighted average grant date fair value | 1.51 | |||
Performance and Service Based Vesting [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested awards | 99,826 | 330,769 | 1,023,556 | |
Awards vested during the period | 67,568 | 127,788 | 100,000 | |
Granted, Weighted average grant date fair value | 1.47 | |||
Performance and Service Based Vesting [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested awards | 500,000 | 500,000 | 500,000 | 50,000 |
Awards vested during the period | 50,000 | |||
Granted, Weighted average grant date fair value | $2.42 |
EquityBased_Compensation_Equit
Equity-Based Compensation (Equity-Based Compensation Included In Compensation And Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Equity-based compensation expense | $1,319 | $1,947 | $1,271 |
Non equity-based compensation expense | 28,445 | 45,220 | 61,680 |
Total compensation and benefits | $29,764 | $47,167 | $62,951 |
EquityBased_Compensation_Perio
Equity-Based Compensation (Period Costs by Plan Name or Instrument) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation expense | $1,319 | $1,947 | $1,271 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation expense | 749 | 114 | |
2009 Equity Award Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation expense | -586 | ||
JVB Holdings Agreement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation expense | 32 | 911 | 911 |
2006 / 2010 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation expense | 538 | 905 | 1,290 |
PrinceRidge [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation expense | $17 | ($344) |
EquityBased_Compensation_Restr
Equity-Based Compensation (Restricted Stock and Restricted Stock Units Activity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issuance of Stock and Warrants for Services or Claims | $0 | ||
Share-based Goods and Nonemployee Services Transaction, Securities Issued | 500,000 | ||
Service Based Vesting [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested, beginning balance | 311,300 | 427,057 | 1,574,064 |
Granted | 158,438 | 408,079 | 396,726 |
Vested | -311,300 | -522,008 | -543,830 |
Forfeited | -1,828 | -883,308 | |
Surrendered | -116,595 | ||
Unvested, ending balance | 158,438 | 311,300 | 427,057 |
Unvested, Weighted average grant date fair value, beginning balance | $2.42 | $1.87 | $4.17 |
Granted, Weighted average grant date fair value | $2.43 | $1.98 | $1.43 |
Vested, Weighted average grant date fair value | $2.42 | $1.62 | $4.47 |
Forfeited, Weighted average grant date fair value | $4.89 | $3.75 | |
Surrendered, Weighted average grant date fair value | $5 | ||
Unvested, Weighted average grant date fair value, ending balance | $2.43 | $2.42 | $1.87 |
Service Based Vesting [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested, beginning balance | 132,450 | 172,585 | 40,135 |
Granted | 132,450 | ||
Vested | -132,450 | -40,135 | |
Unvested, ending balance | 132,450 | 172,585 | |
Unvested, Weighted average grant date fair value, beginning balance | $1.51 | $1.92 | $3.26 |
Granted, Weighted average grant date fair value | $1.51 | ||
Vested, Weighted average grant date fair value | $1.51 | $3.26 | |
Unvested, Weighted average grant date fair value, ending balance | $1.51 | $1.92 | |
Performance and Service Based Vesting [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested, beginning balance | 99,826 | 330,769 | 1,023,556 |
Granted | 32,258 | ||
Vested | -67,568 | -127,788 | -100,000 |
Forfeited | -32,258 | -103,155 | -625,045 |
Unvested, ending balance | 99,826 | 330,769 | |
Unvested, Weighted average grant date fair value, beginning balance | $3.78 | $4.34 | $4.72 |
Granted, Weighted average grant date fair value | $1.47 | ||
Vested, Weighted average grant date fair value | $4.89 | $4.34 | $4.60 |
Forfeited, Weighted average grant date fair value | $1.47 | $4.89 | $4.69 |
Unvested, Weighted average grant date fair value, ending balance | $3.78 | $4.34 | |
Performance and Service Based Vesting [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested, beginning balance | 500,000 | 50,000 | |
Granted | 50,000 | 500,000 | |
Vested | -50,000 | ||
Forfeited | -50,000 | ||
Unvested, ending balance | 500,000 | 500,000 | 500,000 |
Unvested, Weighted average grant date fair value, beginning balance | $3.07 | ||
Granted, Weighted average grant date fair value | $2.42 | ||
Vested, Weighted average grant date fair value | $2.42 | ||
Forfeited, Weighted average grant date fair value | $3.07 | ||
2009 Equity Award Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested | -116,595 |
EquityBased_Compensation_Stock
Equity-Based Compensation (Stock Options, Activity) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Options | ||
Beginning Balance | 3,000,000 | |
Granted | 278,571 | 3,000,000 |
Vested | ||
Forfeited | -85,714 | |
Ending Balance | 3,192,857 | 3,000,000 |
Weighted Average Exercise Price | ||
Beginning Balance | $4 | |
Granted | $4 | $4 |
Vested | ||
Forfeited | $4 | |
Ending Balance | $4 | $4 |
Additional Disclosures | ||
Options Non-vested, Weighted Average Remaining Contractual Term | 3 years 10 months 24 days | |
Weighted average grant date fair value for options granted | $0.70 | $0.70 |
Options Exercisable, Number of Options | 763,094 | |
Options Exercisable, Weighted Average Exercise Price | $4.44 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax [Line Items] | ||||
Operating loss carryforwards | $99,409 | |||
Accrued income taxes | 63 | |||
Prepaid income taxes | 146 | 146 | ||
Interest expense related to unrecognized tax benefits | 0 | 0 | 79 | |
Income tax examination, estimate of possible loss | 4,683 | |||
Capital Loss Carryforward [Member] | ||||
Income Tax [Line Items] | ||||
Tax credit carryforward | $25,754 |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Current Federal tax expense (benefit) | ($1,442) | $142 | |
Current Foreign income tax expense (benefit) | 228 | 8 | 20 |
Current State and local income tax expense (benefit) | -57 | 120 | |
Current income tax expense (benefit) | 228 | -1,491 | 282 |
Deferred Federal income tax expense (benefit) | -566 | -1,827 | -703 |
Deferred State and local income tax expense (benefit) | -76 | -247 | -194 |
Deferred income tax expense (benefit) | -642 | -2,074 | -897 |
Income tax expense (benefit) | ($414) | ($3,565) | ($615) |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income before Income Tax, Domestic and Foreign) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Domestic | ($2,583) | ($20,404) | ($3,711) |
Foreign | -1,503 | -3,080 | 1,055 |
Income/ (loss) before income tax expense / (benefit) | ($4,086) | ($23,484) | ($2,656) |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Federal statutory rate - 35% | ($1,430) | ($8,220) | ($929) |
Pass thru impact | 375 | 2,581 | 352 |
Deferred tax valuation allowance | 489 | 3,812 | -42 |
Recognition of previously unrecognized tax benefit | -1,231 | ||
Other | 152 | -507 | 4 |
Income tax expense (benefit) | ($414) | ($3,565) | ($615) |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ||
Federal net operating loss carry-forward | $34,788 | $33,439 |
State net operating loss carry-forward | 5,791 | 5,291 |
Federal capital loss carry-forward | 10,597 | 23,784 |
Unrealized loss on investment in Operating LLC | 68,813 | 110,382 |
Other | 754 | 873 |
Gross deferred tax asset | 120,743 | 173,769 |
Less: valuation allowance | -112,205 | -165,025 |
Net deferred tax asset | 8,538 | 8,744 |
Unrealized gain on debt | -12,426 | -13,274 |
Gross deferred tax (liability) | -12,426 | -13,274 |
Net deferred tax asset / (liability) | -3,888 | -4,530 |
Gross deferred tax asset / (liability) | $108,317 | $160,495 |
Income_Taxes_Schedule_of_Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 |
Income Taxes [Abstract] | ||
Unrecognized tax benefits, beginning balance | $1,231 | $1,231 |
Reductions due to lapse of applicable statute of limitations | -1,231 | |
Unrecognized tax benefits, ending balance | $1,231 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income / (Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | ($636) | ($495) | ($626) |
Change in foreign currency items | -126 | -14 | 154 |
Other comprehensive income / (loss), net | -126 | -14 | 154 |
Acquisition / (surrender) of additional units in consolidated subsidiary, net | -10 | -127 | -23 |
Ending Balance | -772 | -636 | -495 |
Foreign currency items [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | -636 | -495 | -626 |
Change in foreign currency items | -126 | -14 | 154 |
Other comprehensive income / (loss), net | -126 | -14 | 154 |
Acquisition / (surrender) of additional units in consolidated subsidiary, net | -10 | -127 | -23 |
Ending Balance | ($772) | ($636) | ($495) |
Net_Capital_Requirements_Detai
Net Capital Requirements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Net Capital Requirements [Line Items] | ||
Actual Net Capital or Liquid Capital | $16,252 | $28,629 |
Amount Required | 2,305 | 2,636 |
Excess | 13,947 | 25,993 |
JVB [Member] | ||
Net Capital Requirements [Line Items] | ||
Actual Net Capital or Liquid Capital | 12,750 | 7,470 |
Amount Required | 267 | 188 |
Excess | 12,483 | 7,282 |
Cohen And Company And PrinceRidge L.L.C. [Member] | ||
Net Capital Requirements [Line Items] | ||
Actual Net Capital or Liquid Capital | 18,566 | |
Amount Required | 250 | |
Excess | 18,316 | |
Cohen and Company Financial Limited [Member] | ||
Net Capital Requirements [Line Items] | ||
Actual Net Capital or Liquid Capital | 3,502 | 2,593 |
Amount Required | 2,038 | 2,198 |
Excess | $1,464 | $395 |
Earnings_Loss_Per_Common_Share2
Earnings / (Loss) Per Common Share (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Line Items] | |||
Unrestricted Units Exchangeable into Shares | 5,324,130 | 5,324,090 | 5,252,198 |
Stock Compensation Plan [Member] | |||
Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 121,914 | 395,457 | 144,401 |
Earnings_Loss_Per_Common_Share3
Earnings / (Loss) Per Common Share (Schedule of Earnings / (Loss) Per Common Share) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings / (Loss) Per Common Share [Abstract] | |||
Net income / (loss) attributable to IFMI | ($2,585) | ($13,318) | ($968) |
Add/ (deduct): Income / (loss) attributable to non-controlling interest attributable to Operating LLC membership units exchangeable into IFMI shares | -1,087 | -6,592 | -857 |
Add / (deduct): Adjustment | 185 | 876 | 307 |
Net income / (loss) on a fully converted basis | ($3,487) | ($19,034) | ($1,518) |
Weighted average common shares outstanding - Basic | 14,998,620 | 12,340,468 | 10,732,723 |
Unrestricted Operating LLC membership units exchangeable into IFMI shares | 5,324,130 | 5,324,090 | 5,252,198 |
Weighted average common shares outstanding - Diluted | 20,322,750 | 17,664,558 | 15,984,921 |
Net income / (loss) per common share - Basic | ($0.17) | ($1.08) | ($0.09) |
Net income / (loss) per common share - Diluted | ($0.17) | ($1.08) | ($0.09) |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loss Contingencies [Line Items] | ||||
Rent expense | $1,660 | $2,619 | $2,537 | |
Sublease income | 784 | 304 | 68 | |
Income Tax Examination, Estimate of Possible Loss | 4,683 | |||
Principal Transactions and Other Income | 7,979 | -6,668 | -2,439 | |
Guarantee Obligations [Member] | ||||
Loss Contingencies [Line Items] | ||||
Guarantee liability | 1,084 | 1,084 | ||
Principal Transactions and Other Income | $1,084 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies [Abstract] | |
Lease, 2015 | $4,332 |
Lease, 2016 | 3,275 |
Lease, 2017 | 616 |
Lease, 2018 | 312 |
Lease, 2019 | 224 |
Lease, 2020 and Thereafter | 249 |
Lease, Total | 9,008 |
Sublease, 2015 | -2,646 |
Sublease, 2016 | -2,105 |
Sublease, Total | -4,751 |
Net Commitment, 2015 | 1,686 |
Net Commitment, 2016 | 1,170 |
Net Commitment, 2017 | 616 |
Net Commitment, 2018 | 312 |
Net Commitment, 2019 | 224 |
Net Commitment, 2020 and Thereafter | 249 |
Net Commitment, Total | $4,257 |
Segment_and_Geographic_Informa1
Segment and Geographic Information (Narrative) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Segment and Geographic Information [Abstract] | |
Goodwill impairment charge | $3,121 |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Schedule Of Segment Reporting Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Net trading | $28,056 | $38,528 | $69,486 |
Asset management | 14,496 | 19,239 | 23,172 |
New issue and advisory | 5,219 | 6,418 | 5,021 |
Principal transactions and other income | 7,979 | -6,668 | -2,439 |
Total revenues | 55,750 | 57,517 | 95,240 |
Total operating expenses | 55,462 | 78,621 | 94,945 |
Operating income / (loss) | 288 | -21,104 | 295 |
Interest expense, net | -4,401 | -4,193 | -3,732 |
Income / (loss) from equity method affiliates | 27 | 1,828 | 5,052 |
Other non operating income / (expense) | -4,401 | -4,208 | -8,003 |
Income / (loss) before income taxes | -4,086 | -23,484 | -2,656 |
Income tax expense / (benefit) | -414 | -3,565 | -615 |
Net income / (loss) | -3,672 | -19,919 | -2,041 |
Less: Net income / (loss) attributable to the non-controlling interest | -1,087 | -6,601 | -1,073 |
Net income / (loss) attributable to IFMI | -2,585 | -13,318 | -968 |
Depreciation and amortization (included in total operating expense) | 1,103 | 1,405 | 1,305 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net trading | 28,056 | 38,528 | 69,486 |
Asset management | 14,496 | 19,239 | 23,172 |
New issue and advisory | 5,219 | 6,418 | 6,021 |
Principal transactions and other income | 7,979 | -6,668 | -2,439 |
Total revenues | 55,750 | 57,517 | 96,240 |
Total operating expenses | 43,701 | 65,360 | 83,632 |
Operating income / (loss) | 12,049 | -7,843 | 12,608 |
Income / (loss) from equity method affiliates | 27 | 1,828 | 5,052 |
Other non operating income / (expense) | -173 | -3,554 | |
Income / (loss) before income taxes | 12,076 | -6,188 | 14,106 |
Income tax expense / (benefit) | 14 | 49 | |
Net income / (loss) | 12,076 | -6,202 | 14,057 |
Less: Net income / (loss) attributable to the non-controlling interest | -9 | -216 | |
Net income / (loss) attributable to IFMI | 12,076 | -6,193 | 14,273 |
Depreciation and amortization (included in total operating expense) | 813 | 1,112 | 876 |
Unallocated [Member] | |||
Segment Reporting Information [Line Items] | |||
New issue and advisory | -1,000 | ||
Total revenues | -1,000 | ||
Total operating expenses | 11,761 | 13,261 | 11,313 |
Operating income / (loss) | -11,761 | -13,261 | -12,313 |
Other non operating income / (expense) | -4,401 | -4,035 | -4,449 |
Income / (loss) before income taxes | -16,162 | -17,296 | -16,762 |
Income tax expense / (benefit) | -414 | -3,579 | -664 |
Net income / (loss) | -15,748 | -13,717 | -16,098 |
Less: Net income / (loss) attributable to the non-controlling interest | -1,087 | -6,592 | -857 |
Net income / (loss) attributable to IFMI | -14,661 | -7,125 | -15,241 |
Depreciation and amortization (included in total operating expense) | 290 | 293 | 429 |
Capital Markets [Member] | |||
Segment Reporting Information [Line Items] | |||
Net trading | 28,056 | 38,528 | 69,486 |
New issue and advisory | 5,219 | 6,418 | 6,021 |
Principal transactions and other income | 397 | 542 | 166 |
Total revenues | 33,672 | 45,488 | 75,673 |
Total operating expenses | 32,831 | 53,518 | 74,595 |
Operating income / (loss) | 841 | -8,030 | 1,078 |
Other non operating income / (expense) | -164 | -3,554 | |
Income / (loss) before income taxes | 841 | -8,194 | -2,476 |
Income tax expense / (benefit) | 14 | 49 | |
Net income / (loss) | 841 | -8,208 | -2,525 |
Less: Net income / (loss) attributable to the non-controlling interest | -9 | -216 | |
Net income / (loss) attributable to IFMI | 841 | -8,199 | -2,309 |
Depreciation and amortization (included in total operating expense) | 756 | 795 | 859 |
Asset Management Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Asset management | 14,496 | 19,239 | 23,172 |
Principal transactions and other income | 5,362 | 2,276 | 894 |
Total revenues | 19,858 | 21,515 | 24,066 |
Total operating expenses | 10,500 | 11,523 | 8,690 |
Operating income / (loss) | 9,358 | 9,992 | 15,376 |
Income / (loss) from equity method affiliates | 27 | 546 | 3,309 |
Other non operating income / (expense) | -9 | ||
Income / (loss) before income taxes | 9,385 | 10,529 | 18,685 |
Net income / (loss) | 9,385 | 10,529 | 18,685 |
Net income / (loss) attributable to IFMI | 9,385 | 10,529 | 18,685 |
Depreciation and amortization (included in total operating expense) | 57 | 317 | 17 |
Principal investing [Member] | |||
Segment Reporting Information [Line Items] | |||
Principal transactions and other income | 2,220 | -9,486 | -3,499 |
Total revenues | 2,220 | -9,486 | -3,499 |
Total operating expenses | 370 | 319 | 347 |
Operating income / (loss) | 1,850 | -9,805 | -3,846 |
Income / (loss) from equity method affiliates | 1,282 | 1,743 | |
Income / (loss) before income taxes | 1,850 | -8,523 | -2,103 |
Net income / (loss) | 1,850 | -8,523 | -2,103 |
Net income / (loss) attributable to IFMI | 1,850 | -8,523 | -2,103 |
Institutional Financial Markets, Inc. [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,174 | -11,502 | 2,666 |
Operating income / (loss) | 1,174 | -11,502 | 2,666 |
Interest expense, net | -4,401 | -4,001 | -4,397 |
Income / (loss) before income taxes | -3,227 | -15,503 | -1,731 |
Income tax expense / (benefit) | -642 | -2,185 | -763 |
Net income / (loss) | -2,585 | -13,318 | -968 |
Net income / (loss) attributable to IFMI | ($2,585) | ($13,318) | ($968) |
Segment_and_Geographic_Informa3
Segment and Geographic Information (Reconciliation Of Assets From Segment To Consolidated) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $296,087 | $217,050 |
Investment in equity method affiliates | -31 | |
Goodwill | 7,992 | 11,113 |
Intangible assets | 166 | 483 |
Institutional Financial Markets, Inc. [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 80,379 | 86,074 |
Investment in equity method affiliates | 79,816 | 85,401 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 283,078 | 209,361 |
Investment in equity method affiliates | -31 | |
Goodwill | 7,992 | 11,113 |
Intangible assets | 166 | 483 |
Unallocated [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 13,009 | 7,689 |
Capital Markets [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 248,881 | 172,526 |
Goodwill | 7,937 | 7,937 |
Intangible assets | 166 | 332 |
Asset Management Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 5,548 | 9,938 |
Investment in equity method affiliates | -48 | |
Goodwill | 55 | 3,176 |
Intangible assets | 151 | |
Principal investing [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 28,649 | 26,897 |
Investment in equity method affiliates | $17 |
Segment_and_Geographic_Informa4
Segment and Geographic Information (Revenue By Geographic Area) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $55,750 | $57,517 | $95,240 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 44,991 | 44,043 | 78,597 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 10,636 | 11,178 | 16,643 |
Asia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 123 | 2,296 | |
Institutional Financial Markets, Inc. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $1,174 | ($11,502) | $2,666 |
Supplemental_Cash_Flow_Disclos1
Supplemental Cash Flow Disclosure (Details) (USD $) | 3 Months Ended | 12 Months Ended | 2 Months Ended | 10 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2013 | Dec. 31, 2013 | Feb. 28, 2014 |
Debt Conversion [Line Items] | ||||||||
Acquisition / (surrender) of additional units of consolidated subsidiary, net | $215 | $2,764 | $928 | |||||
Reclassification of equity method investee | 705 | |||||||
Reclassification to Mandatorily Redeemable Equity Interests | 6,446 | |||||||
Treasury Stock, Shares, Retired | 100,000 | 100,000 | 200,000 | 50,400 | ||||
Reorganization Of Equity Method Investee | 1,841 | |||||||
Common Stock [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Treasury Stock, Shares, Retired | 200,000 | 50,400 | ||||||
Additional paid-in capital [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Acquisition / (surrender) of additional units of consolidated subsidiary, net | 2,764 | |||||||
Redemption of non-controlling interest, net | 215 | 2,764 | 928 | |||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Acquisition / (surrender) of additional units of consolidated subsidiary, net | -127 | |||||||
Redemption of non-controlling interest, net | -10 | -127 | -23 | |||||
Non-controlling Interest [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Acquisition / (surrender) of additional units of consolidated subsidiary, net | -2,637 | |||||||
Redemption of non-controlling interest, net | -205 | -2,637 | -905 | |||||
Retained Earnings/ (Accumulated Deficit) [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Treasury Stock, Retired, Cost Method, Amount | 328 | |||||||
Treasury Stock [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Treasury Stock, Shares, Retired | -50,400 | |||||||
Treasury Stock, Retired, Cost Method, Amount | -328 | |||||||
IFMI, LLC [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Treasury Stock, Shares, Retired | 200,000 | 50,400 | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 73.80% | 73.80% | 73.20% | 73.20% | ||||
Star Asia Manager [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Reclassification of equity method investee | 705 | |||||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 50.00% | 100.00% | 100.00% | |||||
Star Asia Manager [Member] | ||||||||
Debt Conversion [Line Items] | ||||||||
Net Fair Value of IFMI Contribution | 1,855 | |||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | 425 | 425 | ||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $725 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2011 |
Related Party Transaction [Line Items] | ||||||||
Securities sold under agreements to repurchase | $101,856 | $101,856 | $28,748 | |||||
Investments / advances | 30 | 4,716 | ||||||
Reorganization Of Equity Method Investee | 1,841 | |||||||
Cash and cash equivalents | 12,253 | 12,253 | 13,161 | 14,500 | 18,221 | |||
Payments to Acquire Other Investments | 25,290 | 2,035 | 390 | |||||
Investment Banking Revenue | 5,219 | 6,418 | 5,021 | |||||
Retirement of common stock | 100,000 | 100,000 | ||||||
Treasury Stock Acquired, Average Cost Per Share | $1.77 | $2.07 | ||||||
EBC Family Trust [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Transaction, Amounts of Transaction | 4,000 | |||||||
Star Asia Manager [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage of equity method affiliate | 100.00% | 100.00% | 50.00% | |||||
Star Asia Special Situations Fund [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Reorganization Of Equity Method Investee | 1,841 | |||||||
Payments to Acquire Other Investments | 302 | |||||||
TBBK [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Securities sold under agreements to repurchase | 46,275 | 46,275 | 6,445 | |||||
Investments / advances | 26 | |||||||
Interest Expense, Related Party | 396 | |||||||
Cash and cash equivalents | 86 | 86 | 52 | |||||
Investment Banking Revenue | 174 | |||||||
Investments in and Advances to Affiliates, Balance, Shares | 2,400 | |||||||
Investments in and Advances to Affiliates, at Fair Value | 26 | |||||||
TBBK [Member] | Net Trading [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest Expense, Related Party | 461 | |||||||
Mead Park Capital [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||
Interest Expense, Related Party | 547 | 144 | ||||||
Related Party Transaction, Amounts of Transaction | 9,746 | |||||||
Resource Securities, Inc. [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 6 | |||||||
Institutional Financial Markets, Inc. [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Cash and cash equivalents | 8 | 8 | 7 | 140 | ||||
Subordinated Debt [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | ||||||
Contingent convertible senior notes [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||
Contingent convertible senior notes [Member] | EBC Family Trust [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Notes Payable, Related Parties | 2,400 | 2,400 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||
Contingent convertible senior notes [Member] | Mead Park Capital [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Notes Payable, Related Parties | $5,848 | $5,848 |
Related_Party_Transactions_Sch
Related Party Transactions (Schedule Of Related Party Transactions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Net trading | $28,056 | $38,528 | $69,486 |
Income / (loss) from equity method affiliates | 27 | 1,828 | 5,052 |
Professional fees and other operating | 9,062 | 13,410 | 13,448 |
Cohen Brothers Financial, L.L.C. [Member] | |||
Related Party Transaction [Line Items] | |||
Management fee revenue | 64 | ||
TBBK [Member] | |||
Related Party Transaction [Line Items] | |||
Net trading | 24 | 483 | 156 |
Interest expense incurred | 396 | ||
Star Asia [Member] | |||
Related Party Transaction [Line Items] | |||
Management fee revenue | 125 | 2,329 | |
Principal transactions and other income, Gain/(Loss) | -13,065 | -7,274 | |
Star Asia Manager [Member] | |||
Related Party Transaction [Line Items] | |||
Income / (loss) from equity method affiliates | 158 | 1,101 | |
Star Asia SPV [Member] | |||
Related Party Transaction [Line Items] | |||
Income / (loss) from equity method affiliates | 1,287 | 1,581 | |
Star Asia Opportunity [Member] | |||
Related Party Transaction [Line Items] | |||
Income / (loss) from equity method affiliates | -5 | 544 | |
Star Asia Opportunity II [Member] | |||
Related Party Transaction [Line Items] | |||
Income / (loss) from equity method affiliates | -382 | ||
Star Asia Capital Management [Member] | |||
Related Party Transaction [Line Items] | |||
Income / (loss) from equity method affiliates | 13 | 145 | 504 |
Star Asia Special Situations Fund [Member] | |||
Related Party Transaction [Line Items] | |||
Principal transactions and other income, Gain/(Loss) | 152 | 662 | |
S.A.A. Manager [Member] | |||
Related Party Transaction [Line Items] | |||
Income / (loss) from equity method affiliates | 14 | 255 | -8 |
EuroDekania [Member] | |||
Related Party Transaction [Line Items] | |||
Management fee revenue | 139 | ||
Principal transactions and other income, Gain/(Loss) | 1,801 | 1,971 | 638 |
Deep Value [Member] | |||
Related Party Transaction [Line Items] | |||
Income / (loss) from equity method affiliates | -13 | 1,712 | |
E.B.C. [Member] | |||
Related Party Transaction [Line Items] | |||
Interest expense incurred | 224 | 59 | |
Mead Park Capital [Member] | |||
Related Party Transaction [Line Items] | |||
Interest expense incurred | 547 | 144 | |
Other Related Parties [Member] | |||
Related Party Transaction [Line Items] | |||
Income / (loss) from equity method affiliates | 1 | ||
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Management fee revenue | 125 | 2,329 | 203 |
Net trading | 24 | 483 | 156 |
Principal transactions and other income, Gain/(Loss) | 1,801 | -10,942 | -5,974 |
Income / (loss) from equity method affiliates | 27 | 1,828 | 5,052 |
Interest expense incurred | $771 | $203 |
Due_from_Due_to_Related_Partie1
Due from / Due to Related Parties (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Total Due from Related Parties | $552 | $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 | |
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 | $552 | $411 |
Schedule_I_Condensed_Financial2
Schedule I Condensed Financial Information of Registrant (Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $12,253 | $13,161 | $14,500 | $18,221 |
Investment in IFMI, LLC | -31 | |||
Other assets | 7,434 | 8,395 | ||
Total assets | 296,087 | 217,050 | ||
Accrued interest and other liabilities | 5,103 | 8,476 | ||
Deferred income taxes | 12,426 | 13,274 | ||
Debt | 27,939 | 29,674 | ||
Total liabilities | 239,593 | 155,867 | ||
Preferred Stock | 5 | 5 | ||
Common Stock | 15 | 14 | ||
Additional paid-in capital | 74,604 | 73,866 | ||
Accumulated deficit | -25,617 | -21,754 | ||
Accumulated other comprehensive loss | -772 | -636 | -495 | -626 |
Total stockholders' equity | 48,235 | 51,495 | ||
Total liabilities and equity | 296,087 | 217,050 | ||
Institutional Financial Markets, Inc. [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 8 | 7 | 140 | |
Investment in IFMI, LLC | 79,816 | 85,401 | ||
Other assets | 555 | 666 | ||
Total assets | 80,379 | 86,074 | ||
Accrued interest and other liabilities | 317 | 375 | ||
Deferred income taxes | 3,888 | 4,530 | ||
Debt | 27,939 | 29,674 | ||
Total liabilities | 32,144 | 34,579 | ||
Preferred Stock | 5 | 5 | ||
Common Stock | 15 | 14 | ||
Additional paid-in capital | 74,604 | 73,866 | ||
Accumulated deficit | -25,617 | -21,754 | ||
Accumulated other comprehensive loss | -772 | -636 | ||
Total stockholders' equity | 48,235 | 51,495 | ||
Total liabilities and equity | $80,379 | $86,074 |
Schedule_I_Condensed_Financial3
Schedule I Condensed Financial Information of Registrant (Statement of Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Income Statements, Captions [Line Items] | |||
Total revenues | $55,750 | $57,517 | $95,240 |
Operating income / (loss) | 288 | -21,104 | 295 |
Interest expense, net | -4,401 | -4,193 | -3,732 |
Income/ (loss) before income tax expense / (benefit) | -4,086 | -23,484 | -2,656 |
Income tax expense / (benefit) | -414 | -3,565 | -615 |
Net income / (loss) | -2,585 | -13,318 | -968 |
Institutional Financial Markets, Inc. [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Equity in undistributed earnings / (loss) from IFMI, LLC | 1,174 | -11,502 | 2,666 |
Total revenues | 1,174 | -11,502 | 2,666 |
Operating income / (loss) | 1,174 | -11,502 | 2,666 |
Interest expense, net | -4,401 | -4,001 | -4,397 |
Income/ (loss) before income tax expense / (benefit) | -3,227 | -15,503 | -1,731 |
Income tax expense / (benefit) | -642 | -2,185 | -763 |
Net income / (loss) | ($2,585) | ($13,318) | ($968) |
Schedule_I_Condensed_Financial4
Schedule I Condensed Financial Information of Registrant (Statement of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income / (loss) | ($3,672) | ($19,919) | ($2,041) |
Adjustments to reconcile net income / (loss) to net cash provided by (used in) operating activities: | |||
Other (income) / expense | 15 | -86 | |
Amortization of discount on debt | 1,386 | 906 | 189 |
(Increase) decrease in other assets | -155 | -596 | 1,583 |
Increase (decrease) in accounts payable and other liabilities | -2,804 | -4,860 | -1,544 |
Increase (decrease) in deferred income taxes | -642 | -2,073 | -897 |
Net cash provided by (used in) operating activities | 4,114 | -8,231 | 14,748 |
Financing activities | |||
Repurchase of debt | -3,121 | -6,072 | -16,270 |
Payments for deferred financing costs | -670 | ||
Cash used to settle equity awards | -87 | -153 | -199 |
Repurchase of stock | -384 | ||
Dividends paid to stockholders | -1,278 | -1,066 | -953 |
Net cash provided by (used in) financing activities | -5,289 | 4,032 | -27,717 |
Net increase (decrease) in cash and cash equivalents | -908 | -1,339 | -3,721 |
Cash and cash equivalents, beginning of period | 13,161 | 14,500 | 18,221 |
Cash and cash equivalents, end of period | 12,253 | 13,161 | 14,500 |
Institutional Financial Markets, Inc. [Member] | |||
Operating activities | |||
Net income / (loss) | -2,585 | -13,318 | -968 |
Adjustments to reconcile net income / (loss) to net cash provided by (used in) operating activities: | |||
Equity in undistributed earnings / (loss) from IFMI, LLC | -1,174 | 11,502 | -2,666 |
Distributions from / (Contributions to) IFMI, LLC | 7,810 | -3,653 | 15,943 |
Other (income) / expense | 15 | -3 | |
Amortization of discount on debt | 1,380 | 906 | 189 |
(Increase) decrease in other assets | 111 | 32 | 246 |
Increase (decrease) in accounts payable and other liabilities | -58 | 74 | -330 |
Increase (decrease) in deferred income taxes | -642 | -2,144 | -826 |
Net cash provided by (used in) operating activities | 4,842 | -6,586 | 11,585 |
Financing activities | |||
Repurchase of debt | -3,115 | -5,000 | -10,357 |
Issuance of debt | 8,248 | ||
Payments for deferred financing costs | -670 | ||
Cash used to settle equity awards | -64 | -110 | -135 |
Proceeds from issuance of stock, net | 5,051 | ||
Repurchase of stock | -384 | ||
Dividends paid to stockholders | -1,278 | -1,066 | -953 |
Net cash provided by (used in) financing activities | -4,841 | 6,453 | -11,445 |
Net increase (decrease) in cash and cash equivalents | 1 | -133 | 140 |
Cash and cash equivalents, beginning of period | 7 | 140 | |
Cash and cash equivalents, end of period | $8 | $7 | $140 |