Ladenburg Thalmann Financial Services Inc. Ladenburg Thalmann Financial Services Inc.

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Ladenburg Thalmann Financial Services Inc.

LADENBURG THALMANN FINANCIAL SERVICES INC.

Vector presently beneficially owns approximately 8.1% of Ladenburg Thalmann Financial Services Inc. ("LTS"). Vector lent $15,000 to LTS in November 2011. In May and June 2013, LTS paid Vector $8,433 of principal plus related interest on the loan. In connection with the principal reduction, the Company recognized $552 of interest income related to the acceleration of the amortization of note discount. As of June 30, 2013, the outstanding principal balance on the loan to LTS was $6,567.

On May 22, 2013, Vector purchased 240,000 shares of LTS 8% Series A Cumulative Redeemable Preferred Stock (Liquidation Preference $25.00 Per Share) ("LTS-A") for $6,000. LTS will pay a monthly cumulative dividend of 8% on the LTS-A on a monthly basis. LTS, at its option, may redeem any or all of the LTS-A at $25.00 per share plus any accumulated and unpaid dividends on or after May 24, 2018. As of June 30, 2013, the LTS-A investment was included in "Investment securities available for sale" and had a carrying value of $6,007 in Vector's Condensed Consolidated Balance Sheet..