Of all the threads scattered about Refco, this thread is dedicated strictly to the FALLOUT Refco's accounting scandal/bankruptcy is causing. Primarily post just news links/brief comments please. flamers will be shot on site. Wall Street braces for Refco fallout http://www.theglobeandmail.com/serv...C/20051019/IBREFCO19/TPBusiness/International The debacle poses significant financial risk to leading Wall Street firms that underwrote the initial public offering,...
I think it was all a well-structured, highly organized intentional fleecing of $100s of millions of the public's money in one fell swoop. key players (including the SEC) are all in on it lining their pockets.
In August, Refco went public with a share offering that raised $583-million (U.S.) at a price of $22 a share. Within a few weeks, the company was trading at $30.55 a share, and its chairman, Phillip Bennett, was promising glory days to come. Two days later, the U.S. Attorney for Southern Manhattan charged Mr. Bennett with securities fraud, a charge that could land him in jail for up to 20 years. On Thursday, the New York Stock Exchange halted trading in Refco stock, which had plunged 72 per cent to $7.80 (U.S.), wiping out $1-billion in market value. Yesterday, the NYSE moved to delist the company. just goes to show the financial power of well-placing shorters. that $1b didn't exactly get "wiped out," it went into the pockets of those fast enough to short the IPO.
The fallout from Refco's collapse is reverberating through the financial system. The SEC is investigating the collapse, and there were reports yesterday that it had broadened its inquiry to include other senior executives at the firms.
thewoodcutter Registered: Jan 2004 Posts: 28 New Post 10-19-05 07:52 AM Quote from FXsKaLpEr: that $1b didn't exactly get "wiped out," it went into the pockets of those fast enough to short the IPO. that just about sums up your market knowledge...... explain what you mean by the above statement
why, was that post attacking or abusive? it is merely pointing out that 100 or so "new" threads about Refco.