FCStone Group increases bad debt provision for energy trading account
FCStone Group expects to incur an additional $60m to $80m pre-tax bad debt provision in connection with previously-reported losses on a significant energy trading account.
The realized losses, which will be for the second quarter of fiscal 2009, could total $36m to $48m, or $1.30 to $1.73 per share after tax. A statement released today by FCStone said this reserve was in addition to the $25.7 million pre-tax bad debt provision announced last November and taken during the first quarter of fiscal 2009 in connection with losses on this account and two other domestic accounts for which FCStone serves as the clearing firm or counterparty.
The company blamed the further
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