Refco

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Refco
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Whats going on?

• See the timeline
• Stock price
• Impact on the bond market
• Class action
• Bidding war
• Rivals responses??

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Stock Price
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Mr. Bennett, a Cambridge University graduate,
joined Refco in 1981 from Chase Manhattan Bank,
where he held various positions over a decade
involving credit and commercial lending in New
York, Toronto, Brussels and London, according to
Refco. He served as president and CEO of Refco
since 1998, often flying to the Middle East on
weekends to meet with customers.
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How was the Debt Discovered

• After its IPO on Aug. 10, the office of Refco
  Chief Financial Officer Gerald M. Sherer was
  evaluating the company's books and raised
  concerns about the assets in question to the
  company's board. The office discovered a series
  of transactions that didn't make sense to the new
  officials led back to an entity controlled by Mr.
  Bennett, these people said. These people said the
  board confronted Mr. Bennett. Mr. Bennett offered
  to repay the money, and the board voted to ask
  Mr. Bennett to take a leave pending the result of
  an investigation to be conducted by its
  independent audit committee. That panel has hired
  forensic consultant FTI Consulting and hired law
  firm Latham Watkins to conduct the probe.
• The source indicates that no one knew Mr.
  Bennett's investment fund owed the company the
  money until August 10.