REFCO Accounting Problems?

[bundbaby]

Does anyone have a handle on whats happening?

 

[Directional]

what do you mean? i've not experienced any statement trouble or the like... something particular you heard or experienced?

 

[JP1966]

Their shares are down 30% in the US - there is some kind of accounting error for $400m!

 

[Quenkish]

Does anyone have a handle on whats happening?

there is an article about it in the wall street journal no doubt the financial times will also publish an article about it as well.

 

[Directional]

yikes!

 

[Directional]

bit more info here:
http://yahoo.smartmoney.com/bn/index.cfm?story=20051010055532&afl=yahoo

and a share price chart here - refco lost 45% of its value / $1.6 billion capitalisation yesterday - didnt hear that announced over the squawk funnily enough:
http://finance.yahoo.com/q?s=rfx

 

[Mayfly]

There's more here: http://www.guardian.co.uk/business/story/0,3604,1589110,00.html

Mayfly

 

[Directional]

Refco shares now suspended

 

[samtron]

This is scary stuff !


If a "broker" goes bust bang goes your trading pot! and this could be a very large amount especially if you are classified as a day-trader.

 

[Directional]

I dont think this is going to be a major problem, certainly not for traders with Refco. There is a memo to all traders here on the intranet giving details of capitalisation and fiscals plus general reassurances. Nothing fundamentally has actually changed, and the fact is that the guy at the centre of this repaid the $430m in cash yesterday. So Refco is actually in a significantly better off position financially than it was before the announcement.

Possibly makes Refco shares a really good buy right now!?

 

[TWI]

Main issue is if credit downgraded and loans called. This is what took down all those other firms like Enron, Tyco etc.
For now however, doors are still open here ( I am based next to Refco in London) and no one I have spoken to is concerned about more than their losses on the "sure thing" they bought at IPO.

No great worry for customers as client account funds will not disappear as they are segregated.

 

[hagadol]

Bloomberg suggests share suspention and SEC investigation.

 

[Quenkish]

I Possibly makes Refco shares a really good buy right now!?

yes i think that they could be a good buy

 

[JP1966]

More like goodbye.

 

[JP1966]

Off another 25% today at the pre open.

And looking at the FTSE, short £ Euribor etc I get the impression there is some large position liquidation taking place at the moment.....

 

[qazwsxedc]

Off another 25% today at the pre open.

And looking at the FTSE, short £ Euribor etc I get the impression there is some large position liquidation taking place at the moment.....

Speaking of which, what hit Short Sterling at 11:51?

 

[TWI]

Refco is illiquid.
Goodbye
Ensure you are not part of non-segregated accounts or you will have a long wait for any money..This is not going to be good.

 

[Captain Haddock]

In light of recent events, the liquidity within the Company's non regulated subsidiary Refco Capital Markets, Ltd., which represents a material portion of the business of the Company, is no longer sufficient to continue operations. The Company has therefore imposed a 15 day moratorium on all activities of Refco Capital Markets, Ltd. to protect the value of the enterprise.

BUT:

The Company stated that the regulatory capital and excess regulatory capital of Refco, LLC, its regulated Futures Commission Merchant, and Refco Securities, LLC, its regulated Broker Dealer, have been substantially unaffected by the events of this week. The business at these subsidiaries is being conducted in the ordinary course including customer deposit and withdrawal of segregated funds

REFCO

 

[nohare]

Refco is illiquid.
Goodbye
Ensure you are not part of non-segregated accounts or you will have a long wait for any money..This is not going to be good.

How safe is your money if it is in a segregated account ?

 

[DESKPRO]

From the FT web site