Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events

Subsequent Events

27. Subsequent Events

The Company evaluated subsequent events through the date of issuance of the accompanying consolidated financial statements.  There were no events requiring disclosure, other than the matters below.

ClearPoint — Pursuing Sale of the Business

On November 8, 2012, the Company announced that it was pursuing a sale of the ClearPoint business.  The Company currently estimates incurring a range of loss between approximately $1.5 million to $6.0 million in connection with any disposition of this business.  Amounts reflected within this estimate include the Company’s remaining payment obligations to the former stockholder of ClearPoint associated with the ClearPoint acquisition on January 3, 2011, the write-off of certain assets, including intangible assets, and the termination of certain other contractual obligations.  This currently estimated range of loss assumes that ClearPoint’s funded and locked loans are ultimately sold without a loss.  Refer to Note 15, herein, for additional information regarding the status of ClearPoint’s credit facilities.

Asset Purchase — RangeMark Financial Services

On November 7, 2012, a subsidiary of the Company acquired certain assets and assumed certain liabilities from RangeMark Financial Services, Inc. and certain of its affiliates and other parties (“RangeMark”).  RangeMark specialized in providing quantitative research, advanced analytics and customizing solutions for its clients.  These business activities will be reported within the Company’s MBS & Rates segment.  The aggregate purchase consideration was $2.5 million, payable in four installments commencing September 30, 2013 through March 31, 2015.  In addition, 14 employees of RangeMark were either hired or are expected to be hired by the Company.

This transaction is being accounted for under the acquisition method of accounting in accordance with ASC 805, “Business Combinations.”  Preliminary goodwill of $1.2 million (all of which is expected to be deductible for tax purposes) is calculated as the purchase premium after adjusting for the fair value of net assets acquired and primarily represents the value attributable to the assembled workforce which is subsumed into the reported goodwill.  The following condensed statement of net assets acquired reflects the preliminary value assigned to RangeMarks’s net assets as of the acquisition date:

Preliminary Condensed Statement of Net Assets Acquired

(In thousands of dollars)	November 7, 2012
Assets
Receivables	$	106
Intangible assets*	1,490
Other assets	40
Total assets acquired	$	1,636
Liabilities
Accrued expenses and other liabilities	$	538
Total liabilities assumed	$	538
Net assets acquired	$	1,098
Purchase price (present value)	2,335
Goodwill resulting from transaction	$	1,237

*Consists primarily of intellectual property and the trade name with estimated useful lives of 5 years and 10 years, respectively.