Refco Account Security

Discussion in 'Retail Brokers' started by Htrader, Oct 10, 2005.

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  1. Htrader

    Htrader Guest

    Is anyone worried about their refco accounts following the scandal that broke today? Seems like there may be more skeletons regarding their finances.
  2. I have a Refcofx account. Could you post a link?

    According the their website they have 20 billion in assets.
  3. Htrader

    Htrader Guest

  4. most ceos are like klans, which must be dealt with.
  5. Read the article.
    The debt has since been repaid, with interest.
  6. CEO owes the firm $430 Mil

    is that the rumors they were talking about on ET? glad I am not using them
  7. There was a doubtful receivable that the CEO w/ others bought from a related third-party. Thus, the debt originated as an arms length, doubtful account.

    The issue is that the company never ammended the account to indicate it had become a related-party receivable.

    According to news reports, the CEO et al have paid the receivable back IN CASH. Its done and history.

    The only remaining issues are accounting/regulatory in that the receivable wasn't accounted for appropriately. It goes without saying that the board of directors is going to get on top of it now, before they need to hire personal attorneys.

    Also, that raises the question: was a related-party transaction hidden for an unsavory reason?

    But make no mistake, according to news accounts, the payable has been REPAID IN CASH.
  8. An obvious trick is that the Receivable was purchased so that the overall Refco Receivable would appear to be higher quality than it actually is, therefore push up the value of the IPO. Since Bill Bennett personally profited from the IPO, therefore the perception of IPO fraud is what everyone is scared about.

  9. nassau


    I believe today's situation is a great opportunity to go long.

    The debt has been addressed it fell close to 50percent....

    In the after market it is already started to rebound...

    @ 15-16 dollars...even if the hidden a/r is discounted it would not justify a drop of this magnitude....

    #10     Oct 10, 2005
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