Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations

Discontinued Operations

21.       Discontinued Operations

As previously disclosed, during the second quarter of 2013, the Board of Directors of the Company approved plans to discontinue its Investment Banking and Fixed Income businesses (MBS & Rates revenues include losses incurred in connection with the wind down of the division’s financial instruments owned).  In addition, during the first quarter of 2013, substantially all of ClearPoint’s assets were sold to Homeward (resulting in a loss of approximately $1.1 million).  As a result of these exits, the results of these businesses have been classified as discontinued operations.

Amounts reflected in the Consolidated Statements of Operations for the three and six months ended June 30, 2013 and 2012 related to these discontinued operations are presented in the following table.

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands of dollars)	2013			2012			2013			2012
Net revenues
Investment Banking	$	1		$	8,730		$	15,034		$	13,263
MBS & Rates	(3,621		)	5,282			(4,344		)	25,613
Credit Products	739			17,872			12,564			39,589
ClearPoint	(53		)	11,316			4,355			26,861
Equities division	—			6			76			43
Other items reclassified from continuing operations (Note 1)	—			1,521			778			3,454
Total net revenues	(2,934		)	44,727			28,463			108,823
Total expenses (excluding restructuring expense)
Investment Banking	918			6,535			12,606			10,489
MBS & Rates	2,969			7,028			10,502			21,872
Credit Products	1,967			16,587			14,209			38,992
ClearPoint	283			13,828			6,436			32,226
Equities division	77			(31		)	119			(104		)
Other items reclassified from continuing operations (Note 1)	1,792			24,316			4,613			27,948
Total expenses (excluding restructuring expense)	8,006			68,263			48,485			131,423
(Loss)/income from discontinued operations before income taxes (excluding restructuring expense)
Investment Banking	(917		)	2,195			2,428			2,774
MBS & Rates	(6,590		)	(1,746		)	(14,846		)	3,741
Credit Products	(1,228		)	1,285			(1,645		)	597
ClearPoint	(336		)	(2,512		)	(2,081		)	(5,365		)
Equities division	(77		)	37			(43		)	147
Other items reclassified from continuing operations	(1,792		)	(22,795		)	(3,835		)	(24,494		)
Subtotal	(10,940		)	(23,536		)	(20,022		)	(22,600		)
Restructuring expense (Note 20)	(43,627		)	—			(46,086		)	—
Loss from discontinued operations before income taxes	(54,567		)	(23,536		)	(66,108		)	(22,600		)
Income tax expense/(benefit)	—			(28		)	—			1,802
Loss from discontinued operations, net of taxes	$	(54,567	)	$	(23,508	)	$	(66,108	)	$	(24,402	)