Former GFT Manager Of Global Risk Says Charles Schwab-FXCM Buyout 'Absolutely Makes Sense'

Speaking to Benzinga, Former GFT Manager of Global Risk Jeff Wilkins said that a rumored $5.25/share buyout of FXCM Inc FXCM by Charles Schwab Corp SCHW “absolutely makes sense.”

Wilkins is currently with ThinkLiquidity, a firm that provides software to help brokers manage risk. He said that $5.25 is quite a premium compared to the current share price of around $2.80.

“But last week, the stock was trading around $17, and the only thing different is the cash situation and possible reputational damage,” He said.

Wilkins added that if Charles Schwab is a suitor, it brings immediate credibility to the table.

FXCM is trading more than 10 percent lower in today’s session, while Charles Schwab is down almost 1 percent.

Brianna Valleskey contributed to this report.