When I heard that the hedge fund involed in this, Liberty Corner Advisors, is in Summit, NJ - the train I take to work passes through there - I looked up the address on Google and Google Maps. It turns out to be half a block from the bar that someone here said Cramer drinks at after work. Wonder if he knows the people there and can get the skinny on what went on. Would be a great scoop.
Why would anyone keep cash at refco at the moment? If it is purely an accounting issue then re-deposit your funds in a months time. If it is larger than that then thank the lord you got out. Call me old fashioned but what is the up-side to keeping your funds with them?
good luck...you couldn't pay me 10.95 a share to buy it. Could be overdone...but IMO where theres smoke there is usually fire.
Well .... although Refco has had its share of issues over the years it largely stayed afloat while a lot of other firms sunk - a few of which it aquired. Refco always seemed to be one of the more stable players at the Merc - they account for about 11% of volume. I think though that for a company to get through the IPO without disclosing or claiming to not know about this appears very serious to me. I have been directly involved in two IPO's and was partly responsible for ensuring that portions of the pre-IPO due diligence work was completed. I know that in my case, information like this could not have escaped detection. I actually feel a bit sad for Refco ... I really dont see how they can recover from this.