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


    Any problem?
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  2. Lornz


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


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


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



    However I am a bit worried

    This never happened before in their history

    Not a good sign
  6. joneog


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

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


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