This is somewhat naive IMO. The risks have increased, so why keep your money there? You can transfer the money out for a pittance, so you have nothing to lose by placing them somewhere safer. Keeping funds at Refco means potential risk, with no gain. Doesn't sound like a good trade to me.
Random thoughts (in my opinion, of course) .... Published reports suggest that Bennett repaid the $430 million loan via a margin loan against his RFX stock. Looking at the prospectus, it appears as though Bennett had 28,529,522 shares (this does not include stock in a trust). As RFX tanks, the firm lending Bennett cash for the margin loan is obviously underwater. Which bank/brokerage firm will be left holding the bag?
Yikes! Just gets better n better... I was wondering how he came up with $430 mil so fast. Most ppl don't have that kind of scratch laying around the house. Well...I do, of course...there's probably enuf under my couch cushions...(well 43 cents of it, anyway)