Subordinated Debt

12 Months Ended

Dec. 31, 2011

Subordinated Debt

Subordinated Debt

NOTE 16. Subordinated Debt

        A select group of management and highly compensated employees were eligible to participate in the Company's Deferred Compensation Plan for Key Employees (the "Key Employee Plan"). The employees entered into subordinated loans with Gleacher Securities to provide for the deferral of compensation and employer allocations under the Key Employee Plan. The accounts of the participants of the Key Employee Plan are credited with earnings and/or losses based on the performance of various investment benchmarks selected by the participants. Maturities of the subordinated debt were based on the distribution election made by each participant, which may be deferred to a later date by the participant. As of February 28, 2007, the Company no longer permits new amounts to be deferred under the Key Employee Plan.

        Principal debt repayment requirements, which occur on about April 15th of each year, as of December 31, 2011, are as follows:

(In thousands)
2012	$	208
2013		185
2014		320
2015		63
2016		25
Total	$	801

        FINRA has approved the net capital treatment of the Company's subordinated debt agreements disclosed above. Pursuant to these approvals, these amounts are allowable in Gleacher Securities' computation of net capital.