Refco Meltdown fka RFC

[gaboracs]

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.

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