Refco Meltdown fka RFC

[webalicious]

Hedge Funds Win $1.2M Reimbursement for Refco Expenses


NEW YORK (AP) -- A group of hedge funds that fought to boost payments to stockholders in Refco Inc.'s bankruptcy proceedings won the right to collect $1.2 million in legal fees and expenses from the company, marking a final victory in their bid for a payoff from their Refco shares.

Judge Robert Drain of the U.S. Bankruptcy Court in Manhattan on Dec. 29 approved the reimbursement to Refco's ad hoc equity committee. The committee consists of King Street Capital Management LLC, QVT Financial LP, JMB Capital Partners LP, Mason Capital Management, Smith Management LLC and Triage Management LLC, which collectively owned about 30 percent of the company's stock.

The reimbursement includes $1.15 million in professional fees, $132,032 in expert-witness expenses and assorted other fees accrued during a protracted court battle during which the hedge funds won the right to 3 percent to 15 percent of two trusts in the case. Most of the hedge funds bought shares after Refco, a former commodity brokerage, tumbled into bankruptcy in October 2005.

The reimbursement comes as Refco's bankruptcy is winding down. Creditors recently won court approval to receive a fraction of the $16.8 billion they were owed under a Chapter 11 plan approved in late December. According to court documents, the company has $3.65 billion in cash that could be available for distribution to creditors.

Refco initially entered bankruptcy amid allegations that its chief executive Phillip Bennett, who has pleaded not guilty to fraud charges, had hidden $430 million in bad debt. The company exited bankruptcy proceedings late last month under a plan that calls for it to wind down its operations.

The equity group said it deserved to collect fees and expenses for its role in the case because it helped secure for most Refco stockholders the right to receive proceeds of two trusts -- the Litigation Trust and the Private Action Trust.

Specifically, any equity holder would get a pro rata share of 3 percent of the first $500 million, 7.5 percent of recoveries between $500 million and $1 billion, and 15 percent of recoveries over $1 billion. A previous plan, which the committee fought to amend, would have allowed them only 10 percent of a subset of Refco Inc.'s claims.

Paul Silverstein, a partner at Andrews Kurth LLP who represented the ad hoc equity committee, said it was far too soon to estimate how much those trusts would be worth, and he couldn't give a timeline for any resolution.

The committee said it considered the effort successful. "With more than $2 billion in claims filed against the parent estates that, if allowed, would be payable before equity receives a distribution, and given the almost $2 billion aggregate creditor shortfall, this was a truly remarkable achievement," the group said in court filings.

Stockholders typically see their investments wiped out in bankruptcy cases. But the ad hoc group, which previously included Lonestar Capital Management LLC, had argued that Refco was unique because of its more than 75 subsidiaries not in bankruptcy proceedings that were able to sell or liquidate. In addition, the group argued, Refco and its investors had grounds to sue former executives and financial advisers.

[webalicious]

Refco Bankruptcy Plan Takes Effect
Tuesday December 26, 5:31 pm ET
Refco's Plan to Exit Chapter 11 Bankruptcy Takes Effect


NEW YORK (AP) -- Refco Inc., which previously provided trade-clearing and brokerage services, on Tuesday said its plan to exit Chapter 11 bankruptcy took effect.
The U.S. Bankruptcy Court in New York approved the plan on Dec. 15. Refco essentially dissolved itself during the bankruptcy by selling off its operations or eliminating them altogether.

Terms of the exit plan called for the company to pay secured lenders the $717.7 million they were owed in cash. Bondholders are expected to receive 83.4 cents on the dollar for their claims. Refco Capital Markets securities customers are expected to get about 85.6 cents on the dollar for their claims.

Unsecured creditors will receive substantially less under the plan -- between 23 cents and 37.6 cents on the dollar.

Refco originally sought bankruptcy protection in October 2005, as the company collapsed during an accounting scandal.

[webalicious]

Refco exits Chapter 11, to wind up businesses
Tuesday December 26, 5:28 pm ET


NEW YORK (Reuters) - Refco Inc. (Other OTC:RFXCQ.PK - News) on Tuesday said it has emerged from Chapter 11 protection from creditors, ending one of the most complex U.S. bankruptcy cases and allowing the company to wind up its businesses.

Refco, which was once a major futures and commodities broker, and 23 affiliates filed for court protection on October 17, 2005, a week after revealing that former chief executive Philip Bennett hid $430 million of debt, and two months after raising $583 million in an initial public offering of stock.

Bennett has pleaded innocent to fraud charges and is scheduled to stand trial in March.

The expected payouts represent a small fraction of the $16.8 billion that creditors had claimed they were owed. Robert Drain, a U.S. bankruptcy judge in Manhattan, approved Refco's reorganization plan on December 15.

Under the plan, secured lenders who were owed $717.7 million were paid in full, while bondholders are expected to receive 83.4 cents on the dollar, Refco said.

Customers of the Refco Capital Markets broker-dealer unit will receive 85.6 cents on the dollar, and the unit's unsecured creditors will receive 37.6 cents on the dollar, Refco said.

Unsecured creditors of other units will receive 23 cents to 37.6 cents on the dollar, the company said. A litigation trust set up to sue individuals who aided alleged fraud may also obtain recoveries for stockholders and some creditors.

Marc Kirschner, the court-appointed trustee for Refco Capital Markets, expects to make "substantial" payouts to the unit's creditors by year end, Refco said.

Refco shares closed Tuesday down 5 cents at 30 cents in Pink Sheets trading.

[gaboracs]

Man Group Wins Refco Auction for Broker's Assets, Refco Says


Nov. 10 (Bloomberg) -- Man Group Plc, the world's biggest publicly traded hedge fund manager, won an auction for the regulated assets of bankrupt futures broker Refco Inc., said Sandra Sternberg, a spokeswoman for Refco in New York.

London-based Man Group's Man Financial brokerage unit outbid Interactive Brokers Group LLC; a group led by the Dubai government; New York buyout firm J.C. Flowers & Co. and Cerberus Capital Management LP. Yesterday, Alaron Trading Corp. was disqualified from bidding after it failed to meet requirements.

``As an existing market participant, they'll be able to quickly integrate the customer base,'' said Dennis Dutterer, former chief executive of Chicago-based Clearing Corp., which guarantees futures transactions at exchanges.

Refco is selling its assets to help pay debts after filing the 14th-largest bankruptcy in U.S. history following disclosure that former CEO Phillip Bennett hid $430 million of debt.

Refco, which declared bankruptcy Oct. 17 and owes creditors about $16.8 billion, plans to present the winning bid to bankruptcy judge Robert Drain today. If he approves the sale, Refco said in a filing that it plans to liquidate its U.S. futures business under federal bankruptcy law, a sale the judge also needs to approve.

Several customers including investment funds controlled by Jim Rogers, George Soros's former partner, filed objections to the sale agreement yesterday, arguing Refco has no right to block them from trying to collect the funds that have been frozen in their accounts. Under the proposed sale terms, customers and creditors are restricted from pursuing claims.

Customer Lawsuits

``To relegate all potentially injured parties to look solely to the sale proceeds for restitution and damages of what may amount to one of the largest U.S. corporate scandals and otherwise absolve potential defendants of any liability is unconscionable and must not be sanctioned by this court,'' Ellen Moring, a lawyer representing the Rogers funds, said in court papers.

Rogers Raw Materials Fund L.P. and Rogers International Raw Materials L.P. have sued to recover $362 million in accounts held at Refco Capital Markets Ltd. Nine customers have filed lawsuits seeking the return of more than $840 million.

Bawag P.S.K, an Austrian bank that's owed $234 million, along with AQR Absolute Return Master Account L.P., Currenex Inc. and a group of more than 40 additional creditors also objected to the sale on similar terms, according to court documents.

Creditors

Refco lawyer J. Gregory Milmoe of Skadden, Arps, Slate, Meagher & Flom said last week his firm contends that customer accounts are unsecured debt, not client property. If Judge Drain determines those accounts are Refco debt, Rogers and the other customers will be treated as unsecured creditors. In large bankruptcy cases, unsecured creditors typically receive about 40 cents on the dollar for their claims.

Interactive last month offered the largest publicly disclosed bid, at $858 million. The government of Dubai and California billionaire Ronald Burkle, 52, together offered $828 million.

J.C. Flowers submitted a bid, Refco said in its filing. Cerberus told Refco before last week's deadline that it planned to bid, according to a person familiar with those discussions.

Refco's 9 percent notes maturing in 2012 traded at 77.5 cents on the dollar yesterday, up from 40 cents on Oct. 13, as bondholders bet Refco will be able to raise enough money in the auction to make good on their debts. The yield has halved to 14 percent in that time. Before the fraud probe, Refco's bonds traded at 109 cents and yielded 7 percent, according to Trace, the bond price reporting system of the NASD.

The case is In re Refco Inc., 05-60006, U.S. Bankruptcy Court, Southern District of New York.



To contact the reporter on this story:
Ann Saphir in Chicago at [e-mail]
Last Updated: November 10, 2005 08:20 EST

[gaboracs]

Refco says receives 5 bids for assets

Bankrupt Refco (RFXCQ.PK:) said on Friday it had received five bids for its futures trading arm and other parts of its commodities brokerage business as a deadline for offers passed.

Once the largest U.S. independent futures and commodities brokerage, Refco plunged into bankruptcy last month after its chief executive, Phillip Bennett, was charged with securities fraud, which caused customers to abandon the company.

The company's collapse, amid accusations that Bennett hid $430 million of debts he owed the company as the company went public in August, sparked a bidding battle for its most sought-after asset -- its futures brokerage business.

http://yahoo.reuters.com/newsArticle.jhtml;jsessionid=KGQKETWBXIFFCCRBAEKSFFA?type=businessNews&...

[gaboracs]

Another Refco bidder emerges
Thursday November 3, 6:37 pm ET
By Michael Flaherty and Dan Wilchins


NEW YORK (Reuters) - Another bidder for Refco Inc.'s (Other OTC:RFXCQ.PK - News) futures business emerged on Thursday, joining at least six other possible buyers a day before formal offers are due for the bankrupt U.S. brokerage's assets.

http://biz.yahoo.com/rb/051103/financial_refco.html?.v=4

[gaboracs]

Refco unit sale may be a transfer of accounts -WSJ
Fri Nov 4, 2005 02:15 AM ET
NEW YORK, Nov 4 (Reuters) - The sale of Refco's brokerage unit is likely to entail a bulk transfer of customer accounts rather than an outright shift of the entity, because of regulatory concerns, the Wall Street Journal reported Friday.

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh14391_2005-11-04_07-15-06_n04...

[gaboracs]

Creditors Seek Court OK to Probe Refco
Friday November 4, 10:09 am ET
Group of Creditors Seek Bankruptcy Court Approval to Investigate Refco


WASHINGTON (AP) -- A group of creditors of commodities broker Refco Inc. is seeking bankruptcy court approval to investigate whether its former executives mismanaged the company.
In court papers filed Thursday in U.S. Bankruptcy Court in Manhattan, the unsecured creditors committee in Refco's Chapter 11 case want to subpoena records of 11 former officials of the New York-based brokerage, including ex-board members and two former chief executives.


Among those named in the motion are former Refco CEOs Phillip Bennett and Tone Grant, as well as seven current members of the company's board.

The creditors also want to look at the books of six firms, including Thomas H. Lee Partners, Refco's largest shareholder. Thomas H. Lee Partners invested $513 million for its stake in the brokerage, court papers said.

The creditors want to examine Refco's financial condition at the time of its August initial public offering and events surrounding ex-CEO Bennett's hidden $430 million debt to the firm, which precipitated the company's bankruptcy.

The creditors committee wants court approval to investigate Refco's Chicago-based law firm, Mayer Brown Rowe & Maw, and auditor Grant Thornton, court papers said.

The creditors are also seeking documents from ex-Refco employees Santo Maggio and Robert Trosten and Austrian bank Bank Fuer Arbeit und Wirschaft AG, or Bawag.

Bawag lent Bennett the cash to repay the $430 million to Refco.

The creditors committee didn't ask to investigate any current Refco officers, according to court papers.

Refco Inc. and 23 affiliates filed for Chapter 11 Oct. 17, after the firm discovered Bennett had a $430 million debt to the company.

Refco LLC, the company's regulated futures brokerage unit, wasn't part of the bankruptcy filing and is being auctioned off next week.

Bids for Refco's regulated commodities and futures arm are due Friday at 4 p.m. The highest known bid is from Refco competitor Interactive Brokers Group LLC, which has offered $858 million.


http://biz.yahoo.com/ap/051104/refco_creditors.html?.v=3

[gaboracs]

Securities sold, not yet purchased 10,590,379,000

http://bankrupt.com/refco.txt

More Suits:

http://www.efinancialnews.com/index.cfm?page=home&pdigest=18500000000074245&uid=5405-7710-92...

In its Chapter 11 petition, Refco Inc. and its affiliates
reported to the Bankruptcy Court that as of February 28, 2005,
their financial condition was:

Total Assets: $48,765,349,000

Total Debts: $48,599,748,000

In a filing with the Securities and Exchange Commission, Refco
Group Ltd., LLC, and its subsidiaries disclosed that their
consolidated balance sheet as of May 31, 2005, reflects:

Total Assets: $74,319,691,000

Total Debts: $74,108,158,000

As of August 31, 2005, Mr. Klejna reports, the Debtors'
consolidated financial position was:

Total Assets: $16.5 billion

Total Debts: $16.8 billion

Soros on the prowl again:

http://www.efinancialnews.com/index.cfm?page=home&pdigest=18500000000066066&uid=5405-7710-92...

Flowers pulls out:

http://www.efinancialnews.com/index.cfm?page=home&storyref=18500000000074147&uid=5405-7710-9...

Bidders Lists:

http://www.efinancialnews.com/index.cfm?page=home&pdigest=18500000000074177&uid=5405-7710-92...

And the winning bidder is:

http://www.efinancialnews.com/index.cfm?page=home&storyref=18500000000074316&uid=5405-7710-9...

http://www.efinancialnews.com/index.cfm?page=home&pdigest=18500000000074307&uid=5405-7710-92...

And the losers:

http://www.efinancialnews.com/index.cfm?page=home&storyref=18500000000073373&uid=5405-7710-9...

http://www.efinancialnews.com/index.cfm?page=home&storyref=18500000000073931&uid=5405-7710-9...

[gaboracs]

Refco Probably One of a Dozen Firms Whose Hidden Liabilities Have Become Exposed:

http://alabamaagainstfraud.com/phpBB/viewtopic.php?p=391#391

[gaboracs]

The $10.5 Billion REFCO Smoking Gun?


http://www.faulkingtruth.com/Articles/Investing101/1041.html
this guy fails to point out the Blackstone group and other connections leading to the bush boys

[gaboracs]

More revealed on Naked Shorts:

http://www.machcobra.com/board/showthread.php?t=370

[DiamondLil]

Indian stock exchanges said they have asked U.S. brokerage firm Refco Inc.'s (NYSE:RFX - news) local units not to increase their positions pending developments in its U.S. parent company, which is teetering on the edge of collapse.

But the local units said on Sunday they were insulating themselves from the parent company's woes by deciding not to transfer any funds to the global companies of Refco Inc.

See complete story . . .
http://news.yahoo.com/s/nm/20051016...co_dc&printer=1

http://www.machcobra.com/board/showthread.php?p=741#post741

[gaboracs]

Abraham Fruchter & Twersky LLP Files Class Action Suit Against Refco, Inc.
NEW YORK, NY -- (MARKET WIRE) -- 10/14/2005 -- Abraham Fruchter & Twersky LLP announces that a class action lawsuit was filed on behalf of purchasers of the securities of Refco Inc. ("Refco" or the "Company") (NYSE: RFX) between August 11, 2005 and October 7, 2005, inclusive (the "Class Period"), including purchasers of the Company's shares pursuant or traceable to the Company's initial public offering (the "Offering") on August 11, 2005. The action seeks to pursue remedies under the Securities Act of 1933 ("Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act").

http://www.marketwire.com/mw/release_html_b1?release_id=97977

http://ir.refco.com/releases.cfm

http://www.cftc.gov/enf/99orders/enfrefco.htm

[gaboracs]

Refco Inc., the futures broker under federal investigation for securities fraud, sped toward collapse Friday as regulators barred its owners from taking out money and Standard & Poor's said a debt default may be imminent.

Refco Securities Llc, the company's biggest unit, "initiated the process of unwinding proprietary and client positions" and won't seek new business, Refco said in a statement Friday. S&P cut Refco's credit rating for the third time in four days and said "a payment default is highly likely."

http://www.newsday.com/business/ny-bzmid4470324oct15,0,7652659.story?coll=ny-business-headlines

[gaboracs]

BANKRUPTCY FILING BEFORE MONDAY?

Bonds from Refco plummeted 17 cents on the dollar to 23 cents on the dollar on Friday, indicating that bond investors see a bankruptcy filing as highly likely. Friday's lender meeting ended without a firm decision.

Should Refco seek bankruptcy protection for any or all of its units, the company and its advisers are likely to mull whether to file before Monday, when stricter bankruptcy laws go into effect.

An outside buyer scooping up parts of Refco is another possibility. Man Group's (London:EMG.L - News) brokerage unit, Man Financial, has expressed interest in buying Refco's futures business, according to a source close to the matter, who added that various private equity firms are also showing interest.

Determining the worth of Refco's units is, at this point, nearly impossible, since most of Refco's market value has been wiped out in the last five days. The company has also been losing clients and their money. In addition, the extent of the alleged accounting fraud remains unclear.

Refco also faces mounting class-action lawsuits, which are likely to lead to high litigation costs.

Refco's commodities unit is the largest U.S. independent commodities brokerage. Refco Securities, LLC, which announced it was no longer taking new clients this week, is a broker-dealer that accounts for nearly half of the company's gross revenues.

Refco Capital Markets, a prime broker serving the hedge fund community, halted activities and froze all its accounts on Thursday.




http://biz.yahoo.com/rb/051016/financial_refco.html?.v=1
http://www.machcobra.com/board/showthread.php?p=737#post737

[gaboracs]

Refco's overseas businesses to file for bankrupty protection
By Robert Peston (Filed: 16/10/2005)


An orderly wind-up of Refco is beginning this weekend, involving many of its overseas businesses filing for bankruptcy protection. According to a banker with a close knowledge of the troubled US futures broker, its major regulated US operations - a futures business and a broker-dealer - will be kept afloat "for a while".

"There will be an attempt to sell the main operations in futures and broker-dealing," he said. There have been preliminary discussions with Man Group, the world's largest quoted hedge fund group, about buying part of it.

But he warned that there was a strong probability of even the major US operations filing for Chapter 11 bankruptcy protection within days.

There has been a collapse of confidence among banks and hedge funds in all of Refco's worldwide operations since it disclosed a massive alleged fraud just under a week ago.

"No one wants to trade with Refco," said a broker. On Thursday, it halted operations at its prime brokerage, which serves hedge funds, and the next day it said it was winding down securities trading.

Attempts by regulators to transfer Refco's extant deals to Goldman Sachs, so that the investment bank could ensure that all customers received either monies or securities they are owed, have failed.

A banker said that it was impossible for Goldman to take on responsibility for clearing and settling trades because it could have been taking on substantial liabilities. "How can a bank step in and perform this function when it has no knowledge of Refco's customers?" asked a banker.

The implosion of Refco is one of the most astonishing events to occur in financial markets. Just two months ago, it was floated in the US at a value of $2.8bn (£1.6bn). The public offering was massively overscribed and shares worth $583m were sold to investors.

Initially the shares performed strongly and the company's market value peaked at $3.9bn on September 7.

Then came calamity. Last Monday Refco said it had discovered that its accounts had been misleading for years, because they failed to disclose that its then chief executive, Phillip Bennett, owed it $430m. Bennett, who has repaid the $430m, has been forced out of the company and has been charged with securities fraud.

An English emigre and alumnus of Cambridge University, he has been confined to his Park Avenue apartment in New York on bail of $50m.

The precise reason that he acquired the liability to the company is unclear, as is the mechanism by which he disguised it over many years. However, the amount he owed Refco grew over several years. "It is not surprising that no one spotted the debt for a while because it started quite small and was covered up in a sophisticated way," said a banker.

Questions have been asked about why Bennett's debt was not detected by Refco's auditors, Grant Thornton, or an array of leading investment banks that advised the company at various times. These included CSFB, Banc of America Securities and Goldman Sachs.

Goldman is now advising Refco for free.





http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/10/16/cnrefco16.xml&menuId=242&s...

[gaboracs]

Data Gathering On Refco

http://www.machcobra.com/board/showthread.php?t=331

Why is the media missing this important fact about RFX?

http://www.investorshub.com/boards/read_msg.asp?message_id=8134541

And the SEC is orchestrating this?:

http://www.investorshub.com/boards/read_msg.asp?message_id=8130295

And are they onto this yet?:

http://www.urgentstockalert.com/

Which by the way was found next to Investigative Reports under Google Ads on StockPatrol.com.

My comments on Dave Patch:

http://www.machcobra.com/board/showthread.php?p=736#post736

And the latest is:

Refco Overseas Units Filing for Bankruptcy:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/10/16/cnrefco16.xml&menuId=242&s...

[DiamondLil]

Dave Patch message and CNBC video on the Refco scandal: http://www.machcobra.com/board/showthread.php?p=729#post729

[gaboracs]

CBOT Holdings Inc. plans to offer 3.19 million shares at an estimated price of $45 to $49 a share, in a bid to raise about $150 million with underwriters CS First Boston, J.P. Morgan, Citigroup, Keefe Bruyette & Woods and Sandler O'Neill & Partners.

IPO trader Sal Morreale of Cantor Fitzgerald said he's seeing enough interest to get the CBOT IPO done, but the deal has cooled somewhat from the feverish pitch he saw prior to the scandal at Refco (RFX:

"It's a case of industry problems affecting the IPO," Morreale said. "The IPO is less than 4 million shares, so there's not a lot of stock to go around."

He added that he expects less than the $10 to $20 pop he forecasted in the IPO two weeks ago.


Refco's Falling House of Cards
By W.D. Crotty (TMFWD40)
October 14, 2005

Refco (NYSE: RFX), one of the largest clearing firms for derivatives, has turned into a falling house of cards.


http://www.fool.com/news/mft/2005/mft05101426.htm?source=eptyholnk303100&logvisit=y&npu=y&am...


Yesterday, Refco imposed a 15-day moratorium on all activities of its offshore securities and foreign-exchange subsidiary, Refco Capital Markets Ltd. While the company said Thursday that capital accounts at its two regulated U.S. operations, Refco LLC and Refco Securities LLC, were unaffected by the scandal, on Friday it began to unwind customer and client positions at the latter.

Traders said Refco Securities is the smaller of the two U.S. divisions, but Friday's move sowed more doubts about the parent's continued solvency.

In a statement Thursday, the CME said Refco LLC has met all of its obligations and remains in good standing, but said it was restricting the company from withdrawing capital without the exchange's permission.

Judging by the action in the stock, not everyone feels that it is business as usual at the Chicago Mercantile Exchange. Some traders even feel that the shuttering of Refco Capital Markets is a signal that the top is here for commodity prices.


http://www.thestreet.com/_yahoo/markets/mikemarino/10247447.html?cm_ven=YAHOO&cm_cat=FREE&cm...

[gaboracs]

When this stock reopens will it go up or down? Or will it reopen at all?

http://finance.yahoo.com/q?s=RFX

Refco Inc. said on Friday that it's unwinding trades at its broker-dealer unit, a day after the commodities and financial-markets broker shut its capital-markets unit in the midst of a scandal.

http://www.marketwatch.com/tools/quotes/detail.asp?view=detail&symb=RFX

Before this week, Refco Inc. wasn't a household name.

But now the possible collapse of the largest independent commodities and futures broker in the U.S. has top investment banks, regulators and exchanges scurrying to save a company that's quietly become an integral part of the nation's financial markets.


Liberty Corner Capital Sued in Refco Investor Lawsuit Filed by Shalov Stone & Bonner LLP
Friday October 14, 7:02 pm ET


NEW YORK, NY--(MARKET WIRE)--Oct 14, 2005 -- Shalov Stone & Bonner LLP commenced a securities class action on behalf of purchasers of the securities of Refco, Inc. (NYSE:RFX - News), in the period between August 10, 2005, and October 7, 2005.
ADVERTISEMENT


While several other law firms have recently filed class action lawsuits against Refco, it is believed that Shalov Stone & Bonner LLP has brought the only case naming as a defendant Liberty Corner Capital, a New Jersey-based hedge fund.


http://biz.yahoo.com/iw/051014/098049.html


Prices Make Biggest Jump in 25 Years
Friday October 14, 5:48 pm ET
By Martin Crutsinger, AP Economics Writer
Consumer Prices Surged in September by Biggest Amount in 25 Years, Spurred by Soaring Energy Prices


WASHINGTON (AP) -- Consumer prices soared last month by the biggest amount in a quarter-century, propelled by Hurricanes Katrina and Rita and the record gasoline costs in their wake. The storms caused industrial production and consumer confidence to plunge, raising new worries about the economy's ability to bounce back.


http://biz.yahoo.com/ap/051014/economy.html?.v=20


Thus, let the blood out through shaky companies such as Refco and Delphi...plus the airlines in Banko...and you have about 200 billion in capital disappearing back into thin air from whence it all originated

What a mess you are leaving behind Mr. Greenspan! And no one will know you were the architect.


Federal Deficit Below Last Year's Record
Friday October 14, 10:13 pm ET
By Andrew Taylor, Associated Press Writer
Federal Budget Deficit at $319B, Down From Last Year's Record, but Sure to Go Up After Storms


WASHINGTON (AP) -- The federal deficit hit $319 billion for the budget year just ended, down from last year's record red ink though a surge in Katrina-driven spending threatens to drive it up again.
The improvement from the record $413 billion recorded in the 2004 budget year, which the Treasury Department reported on Friday, is largely due to a surge in federal revenues from an improving economy.


http://biz.yahoo.com/ap/051014/federal_deficit.html?.v=9


IMM specs grow biggest net short yen position in 6 yrs
Fri Oct 14, 2005 04:16 PM ET
NEW YORK, Oct 14 (Reuters) - Speculators in IMM yen futures grew the biggest net short position in six years during the trading week ending Oct. 11, data released on Friday showed.
Speculators extended the net short yen position to 66,035 contracts, the biggest since May 1999, from a net short position of 63,299 contracts reported in the previous week.

Being "short" a currency is effectively a bet that it will weaken, while "long" positions are bets that a currency will strengthen.

"It is pretty striking that the net short yen position is the biggest in six years and that was before dollar/yen rose above 115 yen, and probably the position became even more extended", said Richard Franulovich, senior currency strategist with Westpac Banking Corporation in New York.

The dollar rose to a two-year high above 115 yen on Thursday.


Refco: What It Does, Why It's in Trouble
Friday October 14, 5:06 pm ET
A Scorecard on Refco: What It Does and Why It's in Trouble


NEW YORK (AP) -- The scandal at Refco Inc. has dominated the news this week, but it's still confusing to many market-watchers. In part, that's because Refco operates in a portion of the market many investors never see, and also, because it's hard to tell the different "Refco" entities apart without a scorecard.

http://biz.yahoo.com/ap/051014/refco_explainer.html?.v=2


NEW YORK, Oct 14 (Reuters) - Man Group's (EMG.L: Quote, Profile, Research) brokerage unit has expressed interest in buying the futures business of embattled U.S. brokerage Refco Inc. (RFX.N: Quote, Profile, Research) , according to a source familiar with the matter.

Man Financial, a unit of the world's largest publicly traded hedge fund, is the major rival to Refco in global futures trading.

Refco, the New York-based commodities and futures brokerage, began shutting down its main business on Friday as fraud charges against the former chief executive threatened to topple the largest U.S. independent commodities brokerage.

[gaboracs]

Refco Supplements Prior Disclosure

NEW YORK, October 11, 2005 - Refco Inc. (NYSE: RFX) today supplemented its disclosure yesterday regarding its discovery of a receivable owed to the Company by an entity controlled by Phillip R. Bennett. The receivable in the amount of approximately $430 million was repaid yesterday in full. Based on the results of the internal investigation to date, the Company believes that the receivable consisted in major part of uncollectible historical obligations owed by unrelated third parties to the Company, that arose as far back as at least 1998. These obligations were transferred periodically to the entity controlled by Mr. Bennett, and the Company’s books and records then reflected a receivable from that entity, rather than a receivable from the originating accounts. The fact that the receivable was from a company controlled by Mr. Bennett was hidden at the end of quarterly and annual reporting periods by reason of transfers to a third party customer account that we currently believe is unaffiliated with Mr. Bennett or anyone else at the Company. The nature and facts surrounding these transfers are being investigated by the Audit Committee.



The Company confirms that it has adequate liquidity to run the business in the ordinary course.



The Company also announced that it had voluntarily contacted the United States Securities and Exchange Commission, the Commodity Futures Trading Commission, the New York Stock Exchange, and other regulators and is cooperating fully with them.


http://www.sec.gov/Archives/edgar/data/1321746/000110465905048112/a05-17426_1ex99d2.htm

[gaboracs]

Refco (NYSE:RFX - News) remains halted, down 72% on the week.

More background data and SEC filings:

http://www.investorshub.com/boards/read_msg.asp?message_id=8122231

http://www.investorshub.com/boards/read_msg.asp?message_id=8126179

http://www.investorshub.com/boards/read_msg.asp?message_id=8126206

Refco shuts down main business
Friday October 14, 6:36 pm ET
By Chris Sanders and Michael Flaherty


NEW YORK (Reuters) - Potential buyers began circling Refco Inc. (NYSE:RFX - News) on Friday after the largest U.S. independent commodities brokerage shut down another major business as it battled for survival.

http://biz.yahoo.com/rb/051014/financial_refco.html?.v=9

Lawsuit Accuses Refco, Inc. of Misleading Investors, Berman DeValerio Pease Tabacco Burt & Pucillo Announces
Friday October 14, 5:40 pm ET


NEW YORK, Oct. 14 /PRNewswire/ -- An investor sued Refco, Inc. ("Refco" or the "Company") (NYSE: RFX - News) today, alleging that the Company issued materially false and misleading financial statements in connection to its August 11, 2005 initial public offering ("IPO").

http://biz.yahoo.com/prnews/051014/nef027.html?.v=3

Embattled Refco Dusts Off the White Flag

By Matthew Goldstein
Senior Writer
10/14/2005 4:39 PM EDT
Click here for more stories by Matthew Goldstein

Updated from 2:07 a.m. EDT
Refco (RFX:NYSE - commentary - research - Cramer's Take), the New York derivatives house battling to survive an accounting scandal, looked ready to hoist the white flag Friday, announcing steps that will greatly diminish the business of its U.S. brokerage arm.

But in a bit of good news for Refco, the firm's three main banks decided to take no immediate action on the question of whether Refco has defaulted on its debt. They will meet again next week to consider the matter.

http://www.thestreet.com/_yahoo/markets/matthewgoldstein/10247380.html?cm_ven=YAHOO&cm_cat=FREE&...

In light of the Audit Committee’s investigation, the Company, Refco Group Ltd., LLC and Refco Finance Inc. each will likely delay the filing of its Quarterly Report on Form 10-Q for the quarterly period ending August 31, 2005, due on October 17, 2005. The Company cannot estimate at this time when the Fiscal 2006 second quarter Form 10-Q filings will be made or when the Audit Committee investigation will be concluded.

http://www.sec.gov/Archives/edgar/data/1321746/000110465905048112/a05-17426_1ex99d1.htm

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Credit Suisse Files SEC Forms on RFX


http://www.sec.gov/Archives/edgar/data/824468/000090342305000823/refco-ex991.htm

http://www.sec.gov/Archives/edgar/data/824468/000090342305000823/xslF345X02/refco-f4_0823ex.xml

http://www.sec.gov/Archives/edgar/data/1321746/000090342305000823/0000903423-05-000823-index.htm

http://www.investorshub.com/boards/read_msg.asp?message_id=8128603

Other SEC Filings on RFX

http://www.sec.gov/cgi-bin/browse-edgar?company=&CIK=RFX&filenum=&State=&SIC=&ow...

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Institutions seek to shore up Refco's futures arm

By Doug Cameron in Chicago
Friday, October 14, 2005
Posted: 06:20 PM EDT (23:20 London)

Futures industry officials on Friday held talks with Goldman Sachs (NYSE:GS) and other financial institutions about shoring up the futures trading arm of Refco, the brokerage group struggling to avoid bankruptcy.

The move reflects concern that the closure of Refco's other businesses in the last two days is undermining confidence in the group's futures arm, one of the largest independent brokers with $4bn in customer accounts.

Refco said on Friday it had started shutting down its securities broker, five days after the group was plunged into crisis by the disclosure of an alleged fraud by former chief executive Phillip Bennett.

http://us.ft.com/ftsuperpage/superpage.php?news_id=fto101420051937413222&referrer_id=yahoofinanc...

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There is another REFCO Board:

http://www.investorshub.com/boards/read_msg.asp?message_id=8114991

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Market Pulse: Regulators ask Goldman Sachs, others to bail out Refco -WSJ
Friday October 14, 4:47 pm ET
By Carolyn Pritchard


SAN FRANCISCO (MarketWatch) -- Senior regulators at the Chicago Mercantile Exchange and Commodity Futures Trading Commission have asked Goldman Sachs Group Inc. and other firms to buy or assume financial responsibility for Refco Inc.'s massive futures-trading operation, the Wall Street Journal reported after Friday's closing bell, citing unnamed people familiar with the matter. Any buyer would likely be expected to guarantee deposits of the unit and allow traders to unwind their positions, the Journal noted. An unnamed person familiar with Goldman Sachs' thinking said the firm isn't interested, according to the Journal. Earlier in the session, Refco said it was unwinding trades at its broker-dealer unit, a day after the commodities and financial-markets broker shut its capital-markets unit in the midst of a scandal.


http://biz.yahoo.com/cbsmb/051014/35c777d59f684c9e82c62440fee36c64.html?.v=1