Concerns, Answers and Alternatives
Chicago, IL Oct 18, 2005
As many of you already know, Refco is embroiled in an investigation of securities fraud with regard to its recent public offering of shares listed on the NYSE; RFX. I am saddened by this event as it affects many our customers dearly and casts a negative light on the industry in general. To make matters worse, the media has presented story after story that has created a close to panic situation.
Finally, today, some tough questions, like "is my money safe," have started to become clear. In short, if you traded anything other than futures, unforntuately it appears your money will be locked up for some time. With the pending sale of Refco LLC to JC Flowers et al, the futures accounts look safe. However, there does appear to be another suitor for Refco, whic includes the government of Dubai. What changes will occur before the sale takes place, and what happens after remains to be seen. I have pasted below some links to additional answers about this situation and what is really happening, please be sure to read them. Of course, we are available to consult with each and every one of our clients (or prospective clients) regarding their account.
We are an Independent Introducing Broker. This means we are not bound to clearing your account through only one FCM. In addition to Refco, we also transact client business through MAN Financial, Iowa Grain CO, IFSCL USA, HotSpot FX and GFT. If you would like to discuss an alternate for your trading account please contact us and we will gladly show you how to accomplish this with relative ease. You may also start this process by visiting our new account signup page at: [url=http://www.zaner.com/open_acct/forms.asp.]http://www.zaner.com/open_acct/forms.asp.[/url]
I thank you for your continuing confidence in the Zaner Group.
Links to Answers:
Refco Files 4th Largest Bankruptcy in U.S. History
Refco Inc., the futures broker under investigation for hiding a $430 million debt, filed for court protection from creditors in the nation"s fourth- largest bankruptcy.
http:// quote.bloomberg.com/apps/news? pid=10000006&sid=afgS6G2Ik6vg
Refco Files for Bankruptcy, Flowers Buys Futures Unit
Oct. 18 (Bloomberg) -- Refco Inc., the broker reeling from a bad-debt scandal, filed for bankruptcy court protection and agreed to sell its futures-trading business to a group led by J.C. Flowers & Co. for $768 million.
Christopher Flowers" New York- based buyout firm will acquire the biggest independent U.S. futures broker with partners including Texas Pacific Group, Refco said in a PRNewswire release late yesterday. Refco applied for Chapter 11 protection for some units, setting up a possible auction.
[url=http://www.b]http://www.b[/url] loomberg.com/apps/news? pid=10000103&sid=a6hoIZ4_DkdA
Refco Sells Futures Unit and Seeks Bankruptcy Protection
Refco Inc., the giant commodities and futures brokerage firm that has been quickly unraveling, said last night that it had filed for bankruptcy protection, a week after it put its chief executive on leave amid accounting problems. At the same time, an investor group led by J. Christopher Flowers, a former Goldman Sachs partner who runs a private equity fund, signed an initial agreement to buy the firm"s futures brokerage business - including Refco L.L.C., Refco Overseas and Refco Singapore - for $768 million. The deal gives Refco the option to retain up to 20 percent of the equity value of the entities being sold, Refco said in a statement.
The investment group includes the Enstar Group, Silver Point Capital, MatlinPatterson Global Advisers and the Texas Pacific Group. Mark Winkelman will serve as chairman of Refco L.L.C., and Jacob Goldfield will be vice chairman. Both have ties to Goldman, Sachs. Mr. Winkelman was co-head of the firm"s fixed-income unit and Mr. Goldfield was at the firm for almost 16 years.
Refco sells futures brokerage, files for bankruptcy
(Reuters) — Futures and commodities firm Refco Inc. has agreed to sell its core futures brokerage business to an investor group for $768 million and filed for bankruptcy protection along with several subsidiaries.
[url=http://www.chicagobusiness.com/cgi-]http://www.chicagobusiness.com/cgi-[/url] bin/news.pl? id=18153
What About the Rest of Refco?
Selling the futures brokerage is a solution for only half of the tainted firm"s business. The other half is where things could get messy.
While Refco (RFX ) is close to an agreement to sell its futures brokerage, which is about half its operation, the firm"s remaining units may soon face rapid liquidation or bankruptcy, people familiar with the firm"s restructuring efforts say. And that could leave hedge funds and other big investors scrambling to get their money out (see BW Online, 10/17/05, "Refco"s Painful Lesson for Investors").
[url=http://www.businessweek.co]http://www.businessweek.co[/url] m/bwdaily/dnflash/oct2005/nf20051017_2707.htm? campaign_id=rss_daily
Refco Inc. Files Chapter 11
Refco Inc. (RFX:NYSE - commentary - research - Cramer"s Take), the scandal-tarred derivatives brokerage, filed for chapter 11 bankruptcy protection after cutting a deal to sell its primary business to a group led by hedge fund J.C. Flowers.
[url=http://www.thestreet.]http://www.thestreet.[/url] com/_tscrss/markets/matthewgoldstein/10247789.htm l
About Zaner Group, LLC
For the past 25 years, Zaner has been helping futures, commodity and forex traders trade smarter, faster and easier. Zaner is an established, highly regarded award-winning execution and brokerage firm known for providing clients with exceptional service. We have been CFTC registered and an NFA member since 1982, and throughout the years have forged exclusive, custom relationships with mutli-billion dollar partners. Which means you access opportunities from cutting-edge technology, memberships on the world"s major exchanges, execution desks on all the world"s premier trading floors, and operations in more than 14 countries.
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phone: 1-800-621-1414 or 312-277-0050