Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets

Goodwill and Intangible Assets

12.Goodwill and Intangible Assets

Refer to Note 1 within the footnotes to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for a detailed discussion of the accounting policy related to goodwill and intangible assets.

Goodwill

In connection with the preparation of the unaudited consolidated financial statements contained herein, the Company performed an interim goodwill impairment test which was triggered as a result of the Company’s market capitalization trading at levels significantly below book value during the three months ended June 30, 2012.  The Company determined that all of its remaining goodwill of approximately $21.1 million had been impaired, due to the duration and severity of the decline in the Company’s stock price in relation to its book value.

(In thousands of dollars)	Reporting Unit MBS & Rates			Reporting Unit Investment Banking			Total
Goodwill
Balance at December 31, 2011	$	17,364		$	3,732		$	21,096
Increases/(decreases)	—			—			—
Balance at March 31, 2012	17,364			3,732			21,096
Increases/(decreases)	(17,364		)	(3,732		)	(21,096		)
Balance at June 30, 2012	$	—		$	—		$	—

Intangible Assets

(In thousands of dollars)	June 30, 2012			December 31, 2011
Intangible assets (amortizable):
MBS & Rates – Customer relationships
Gross carrying amount	$	641		$	641
Accumulated amortization	(436		)	(410		)
Net carrying amount	205			231
Credit Products - Customer relationships
Gross carrying amount	795			795
Accumulated amortization	(689		)	(610		)
Net carrying amount	106			185
Investment Banking – Trade name
Gross carrying amount	4,066			7,300
Accumulated amortization	(965		)	(874		)
Impairment of intangible asset – September 1, 2011	—			(3,234		)
Net carrying amount	3,101			3,192
ClearPoint – Customer relationships
Gross carrying amount	803			803
Accumulated amortization	(151		)	(100		)
Net carrying amount	652			703
Total Intangible assets	$	4,064		$	4,311

In connection with the preparation of the unaudited consolidated financial statements contained herein, the Company evaluated the recoverability of its intangible assets due to the triggering event which resulted in the impairment of goodwill described above.  The outcome of this assessment, which analyzes the cash flows expected to result from the eventual disposition of such assets on an undiscounted basis, resulted in no impairment.

Customer-related intangible assets are being amortized from 3 to 12 years and trademark assets are being amortized over 20 years (with approximately 16 years remaining).   Total amortization expense recorded within Other in the Consolidated Statements of Operations for the three months ended June 30, 2012 and 2011 was approximately $0.1 million and $0.7 million, respectively, and for the six months ended June 30, 2012 and 2011 was approximately $0.2 million and $1.5 million, respectively.

Future amortization expense as of June 30, 2012 is estimated as follows:

(In thousands of dollars)
2012 (remaining)	$	248
2013	364
2014	337
2015	337
2016	301
Thereafter	2,477
Total	$	4,064