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

Speaking to Benzinga, Former GFT Manager of Global Risk Jeff Wilkins said that a rumored $5.25 per share buyout of FXCM Inc (NYSE: FXCM) by Charles Schwab Corp (NYSE: 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,” Wilkins said.

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

FXCM was trading more than 10 percent lower in Friday's session, while Charles Schwab was down 1 percent.

Brianna Valleskey contributed to this report.