Bloomberg
ICE’s Jeffrey Sprecher becomes billionaire on Eve of Wife’s Georgia Runoff
(Bloomberg) – Jeffrey Sprecher was extremely unknown outside of Wall Street to a man who turned from a few dollars into a company that oversees everything from the New York Stock Exchange to Libor, and it may have remained so except that his wife, Kelly Loeffler, was appointed to a U.S. Senate seat in Georgia late last year, after which the couple had a public outcry within months over a series of shares that shook global markets before the outbreak of coronavirus. Their prosperity has now become a focal point in the January 5 run-off election between Loeffler and Raphael Warnock, a Democrat – one of two Senate contests that day that will determine control of the chamber. His company’s 22% march this year helped Sprecher, 65, a billionaire, according to the Bloomberg Billionaires Index, secure Loeffler’s place as the richest member of Congress. This is another reminder of how well Wall Street fared during the pandemic while the broader economy was struggling, and the latest twist on Sprecher’s unlikely journey to the pinnacle of US finances. Intercontinental Exchange Inc., or ICE as it is called, is now a $ 63 billion canopy that supports much of the global financial system. It was based on Sprecher’s transactions, good timing and a keen sense of where the world was headed. ‘I never thought ICE would own the NYSE, a leading provider of fixed income market data and try to automate the mortgage process. at the same time, ”said Rich Repetto, an analyst at Piper Sandler & Co., which has covered the company since its initial public offering in 2005. Speaker, through an ICE representative, did not want to be interviewed or comment on its net worth, which largely consists of its approximately 1% stake in the business. He has not spoken publicly about his wife’s offer in recent years, but he has donated to several Republican lawmakers and political action committees over the past few years, including at least $ 5.5 million to a super PAC that supports her. . Loeffler, 50, was more than an ICE driver. a decade and is now in a fledgling race with Warnock amid a record early rise. Her campaign makes no comment. Speaker, who worked as a salesman for the university, joined the power industry in 1983. Looking for a way to hedge the price of fuel, he formed ICE in the 1990s by buying a failed Atlanta company. Continental Power Exchange mentioned, that he is an EBay model for energy businesses that want to buy or sell excess electricity. He paid $ 1 or $ 1,000 for the business – he said two years ago that he could not remember the exact amount – and kept it going with his savings. ICE was launched shortly before its biggest competitor, Enron Corp., and Precher entered into a staggering number of transactions. He bought competitive exchanges and ICE also expanded into areas such as commodity futures, fixed income and clearing houses, which sit at the center of every trade. The purchase of NYSE Euronext, which includes the famous New York Stock Exchange, gave ICE control over the London Liffe, which offered interest rate derivatives trading. In 2014, ICE took responsibility for the London interbank offer rate, or Libor, which is embedded in a variety of financial contracts, ranging from credit card rates to derivative pricing. And this year, Ellie Mae Inc., which processes more than 40% of all new U.S. residential mortgage loans, bought. It is a thriving business with borrowing costs at a record low. The core of the company is data it collects from customers. and analyze, and then resell to the same customers. It supports benchmark indices for everything from crude oil derivatives to interest rates. “If I were to start this company today, I would probably call it the Intercontinental Massively Scalable Network and Database Company, because that’s what we are,” Sprecher said in a call in February. Bloomberg MP, the parent of Bloomberg News, competes with ICE in providing financial analysis, fixed income information and information. Loeffler joined ICE in 2002 to lead investor relations and later also took on communications and marketing – responsibilities usually divided into three positions. She and Sprecher married in 2004. They are self-proclaimed workaholics and have no children. Loeffler has been active in Republican circles for years, but never voted for a public office. But when Johnny Isakson, the state’s senior senator, resigned in 2019 for health reasons, she sought and won the temporary appointment of Governor Brian Kemp, Georgia. Her gender and financial well-being probably play into his decision. in a 99-page financial disclosure form that includes everything from rental properties to a private jet, was scrutinized after trading a series of shares that began the day she and other senators held an informed briefing on the outbreak of got the coronavirus. the couple’s independent financial advisers did the trading without their knowledge and that the investment portfolio will be liquidated. The Justice Department dropped an investigation into transactions by her and other lawmakers, and the Senate’s own ethics panel cleared her of any transgression. She sits on four committees of the Senate, including the Agriculture Committee, which oversees the Commodity Commission for futures contracts. The agency regulates the derivatives market, including many aspects of ICE’s growing business, and Precher gave no notice that he did the company’s construction. In February, he gave up on an overture with EBay Inc., which surprised analysts. The acquisition of Ellie Mae was announced just six months later. “I really do not know how to run a company that is not growing,” he said in a podcast in May. ‘Part of running a growing company is like the duck with your legs moving fast down. I would not really know how to float around. Visit us at bloomberg.com for more articles like this. Sign up now to stay ahead of the most trusted business resource. © 2020 Bloomberg LP