Refco FX Robs Customers of Their Funds!!!

Discussion in 'Forex Brokers' started by ZoneTrooper, Dec 8, 2005.


    Refco Capital Markets Owes Customers
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    Associated Press
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    NEW YORK (AP) - Customers at Refco Capital Markets, the unregulated unit of Refco Inc., are owed $3.675 billion compared with available assets of just $1.9 billion.

    Refco, which filed for bankruptcy Oct. 17, posted financial information on its Web site,, late Tuesday from some 3,000 accounts together with the value of assets shown on the unit's books and inter-company transfers.

    The court-ordered details were provided so that individual customers could decide what type of action to take -- there are already some 18 pending lawsuits over customer property including one for $362 million brought by investment guru Jim Rogers' funds.

    Experts said that intercompany data showing a total $2.675 billion owed to RCM by other entities in the Refco group of companies couldn't be included in the equation.

    "The numbers may not have a lot of meaning -- you would have to look at the state of solvency of each individual entity and decide whether RCM could in fact collect on it," said a buyside analyst familiar with the situation.

    Indeed, Refco itself said it wasn't claiming that the valuations were accurate or the balances collectible.

    Meanwhile holders of the $650 million bank debt and the $390 million in bonds issued in connection with the Thomas H. Lee Partners buyout of Refco in August 2004 were more cheered by the data.

    Unlike RCM customers, Refco debtholders have recourse to the proceeds from the sale of the company's regulated businesses, which will include the $282 million Man Financial Inc. is paying for Refco LLC as well as the net regulatory capital of $746 million retained by the unit.

    © 2005 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
  2. Call me scared. But I'm having a hard time puttting this all together.

    Here's a chat I had with FXCM.

    Chat Information
    Chat Information
    FXCM€5: Welcome to FXCM's Live Chat feature. So that I may better serve you, feel free to provide me with your name and email address. How can I help you?
    : Helo
    FXCM€5: Hi
    : Is FXCM still buying REFCO FX accounts, even with the latest news?
    : Check out
    FXCM€5: FXCM is bidding for 15,000 accounts at RefcoFX Associates, not Refco Capital Markets
    : Hmm. So the deal is still in the works? Is their a court date?
    FXCM€5: the court is supposed to meet this friday to set the date for the auction
    : ok. Thanx.
  3. I'm waiting also.

    I have already set up a FXCM account and might fund it soon and start from scratch, but I rather fund it with my RefcoFX account.
  4. Why would anyone want to trade with FXCM?
  5. TradeSA


    Trade with FXCM because the other bucketshops available r not that much better, loneagle. what bucketshop r u supporting?
  6. I don't work for any bucket shop, or any provider at all.

    Just don't undertsand why anyone would want to trade with any bucket shop at all,esp FXCM.
  7. TradeSA


    what specifically do you have against fxcm?

    i dont work with them either, i trade for a bank so just wondering whats wrong with them for you to highlight them.
  8. Xenia


  9. I've already sunk some more funds with FXCM. And have started trading again.

    It would be nice to get my REFOFX money back though.
  10. ignatius

    ignatius is not a part of Refco Capital Markets. is a part of RefcoFX Associates LLC. Please read the article before as it doesn't reference RefcoFX Associates.
    #10     Dec 8, 2005