What happened to RCG? They have lost almost 300 million in just 2 months

Discussion in 'Retail Brokers' started by Ares, Aug 23, 2011.

  1. Ares

    Ares

    Any problem?
     
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  2. Lornz

    Lornz

    Yeah, I switched brokers... :D
     
  3. zdreg

    zdreg

    by coincidence or what info. prompted your move?
     
  4. bpcnabe

    bpcnabe

    Don't worry. Your $1k Mirus account won't be raided.
     
  5. Ares

    Ares

    funny

    However I am a bit worried

    This never happened before in their history

    Not a good sign
     
  6. joneog

    joneog

    Look at some of the other big frims on that list:

    Prudential bache -600 mil
    RBS -300 mil
    UBS -1400 mil
     
  7. Ares

    Ares

    In fact...
    Those are banks that have been very close to a collapse
     
  8. cstfx

    cstfx

    If you can't sleep at night then move your funds. Similar thing happened in fall of '08 with FCStone (who were not as well funded as RCG)- moved my funds but they are still around. Haven't moved back yet because I have become complacent, but have been giving them a look once again.

    Moral: It's not Refco
     
  9. OP,
    you're ignorant on this matter. That's not a big fluctuation. For all you know, some of their institutional clients have been long stock index futures, and taking a hit.

    What you should pay attention to, in my view, is the operating capital and excess capital.

    I would view, perhaps a 50%+ decline in Cust. Seg. Funds as perhaps indicative of a bigger problem, but these numbers fluctuate greatly.

    I cleared through MF Global while their Cust. Seg. Funds fell from about $10bb to ~$8bb.

    It's really not a big deal.
     
  10. Correct.
    Whenever there are turn downs in the overall market there will be a shakeout in the money houses.
     
    #10     Aug 23, 2011