IB is Refco 2.0!

Has anyone suggested that HuggyBear Sterns might go bust. I mean, they showed such poor judgment in the sub prime mess, maybe there other nasties under the rug.

You could make a negative case for many firms using the same logic.

And refco was impossible to predict.
 
1) nassau,

I TOTALY agree with your analysis !!!!

2) bpl1000,

One guess as to how IB will make up the +$37M.

You are correct = increase share price by increasing their customers' $ commisions.

IB is one unreliable platform on which to trade!!

Tom
 
Who says they have to 'make it up' . It comes off the bottom line.

When you do a lousy trade, which I'm sure never happens, how do you 'make it up'?
 
Quote from stock777:

Who says they have to 'make it up' . It comes off the bottom line.

When you do a lousy trade, which I'm sure never happens, how do you 'make it up'?
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No one on ET has a losing trade to speak of.
 
Quote from bpl1000:

TP's decision to eat the losses is as transparent as they come... I just don't understand why??
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In addition to avoiding shareholder lawsuits over this loss TP was embarrassed by his firm being scheme by these traders. Like one posters says TP wants to show confidence in his firm (IBKR).

While this is embarrassing to (IBKR) that somehow traders were able to manipulate the system and cause the firm a loss,. at least this guy TP is attempting to acknowledge a problem has occurred and hopefully to correct it.

Some CEO's might sweep this situation under a rug and try to act as if this was unimportant.
 
From the reports, many market makers suffered losses in that affair. Bigger losses.

The sharks spotted a flaw in the rules and ripped them a new one. Maybe two.

If they can prove illegal manipulation (such as pre arranged trading where the seller agrees to dump shares at a stupid low price, as long as his 'buyer' catches them) then they may have to DISGORGE the gains.
 
Quote from nassau:

You just don't get it and obviously don't have the ability to discern what you read.
Again, I was answering ONE comment whereby it was stated no ceo officer etc from refco ever put in funds.
I stated a factual statement, regardless of where the funds came from, Bennett did indeed put in funds...that's it!
I also said "I am not saying IB is going to go bust" and infact said I am hoping the dust clears as soon as possible.
where do you see me slandering IB.
I did say and I still do that as there are lawyers and liars IB will still have issues, all corporations have issues at some time or another..like the back dating of options..frauds on us all the time.

The only other comparison I stated was the bid /ask price when the situation arose was the same and stated mostly how I felt the refco fiasco was bogus. Nothing inflammatory to IB
and by the way the IB drop is bs. We will never know the agenda of the institutions. Ib's drop was not individuals exiting but institutions or funds creating a head fake to ? us? to exit so they can pick up the shares cheap and as you may have noticed I was correct as the current bid /ask is lower. Ib is just lucky they have a small float and manipulation becomes much harder otherwise the drop would of been much greater. Personally, if I was looking to buy shares I would be looking at the high teens / 20 area if and when it gets there. Todays volume imo shows some stability as volume is back to normal?
nvda a few years back went from 27-29 area to 9 dollars in a few wks only to turn around and rally to 60 dollars?
tasr, brcm, mrvl,etc etc all retrace.
my point was refco was profitable and made money for years regardless of what / if Bennett was doing. They were the largest derivative broker in the world, offices in 14 countries several thousand employees to my understanding so how in hell do they go broke in a few wks....total bs as the profitable subs were sold off. in reality this bogus moves to take our the little mans shares is stock manipulation with no recourse and is just a daily fact as is what I stated and am saying.
I am sorry that the truth offends and scares you so much.
but it is what it is and it is you not me that has spewed ignorance and unfair accusations.

have a nice

w
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Nassau,

Refco made its money by fraudulently exposing its customers, investors, and creditors, as well as the larger financial system, to extreme risks. Refco collapsed when the extent of their schemes became sufficiently public, so that nobody was willing to trust them with the credit they needed in order to continue operating. This liquidity crisis put Refco out of business and left it unable to service its debts. This should answer your question as to how Refco went bankrupt.

The fact that you didn't know this is only one more example, further demonstrating that you are speaking from ignorance.

One of your previous posts, in this thread, stated that all listed companies, including IB, are fraudulent, and that as a result, IB will continue to have legal problems and its stock price will drop. You can't support your allegations of fraud againt IB, and so you are now backpedalling. You are now claiming that you didn't slander IB or make inflammatory statements about it. If you can't even accurately remember what you yourself wrote, only a few hours ago, then you are obviously unable to express worthwhile opinions about IB. I hope people will recognize this, so as to help minimize any harm which might result from the babblings emitted by you and others.
 
Quote from stock777:

I didn't know 40 million shares was a small float.
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yes indeed it is small, that is why the owner?? while still a public company anted up. I believe he owns / controls 80-85 percent of the shares similiar to corporations like Mittal Steel (MT) but I have done no dd to be able to say how accurate that is.
but that is one of the main reasons for the quick influx / contribution of the funds..pay now pay later,
a lot of the institution that run into similar issues are able to write it off or down the losses...have mergers which give again write offs, tax benefits etc.
in reality it has nothing to do with share price..
what has and does is one's perception of the stocks value...
stock appreciation versus stock value equals a long or short position
proof is a stock that has great earnings and retraces dollars for x no. of days before reversing sentiment.
I can guarantee you that only the institutions know the hidden agenda while hedge funds / funds can alter the short term inertia of the stock the institutions in the long run dictate as we can never compete with their pb, the fact they are large majority share holders and in a lot of the cases are the underwritters and analysis on the stocks..either directly or indirectly.
I/ we past or present owners of refco had no idea nor the ability to discern the out come..thus I do have losing traders and refco is obviously not my first over the last 20 plus years.

I personal believe the small float is one ways the owner ensured IB was safe? for total manipulation which imo was very smart.
If I were to trader IB stock in the present circumstances I would trade it by witting of put options and buying out of the money calls.
last, over the last few years I have been a victim of several such occurrences and are part of ? civil litigation - refco and several of the stocks related to back dating of options and as of today only the lawyers are winning.
Patience here will give one a good buying opportunity, the hard part is we are in uncharted waters and as supports and resistances are only one's perception and IB we are guessing where some support ? is. imo IB is not a short term trade but a yrs. trade.

w
 
Quote from jimrockford:

Nassau,

Refco made its money by fraudulently exposing its customers, investors, and creditors, as well as the larger financial system, to extreme risks. Refco collapsed when the extent of their schemes became sufficiently public, so that nobody was willing to trust them with the credit they needed in order to continue operating. This liquidity crisis put Refco out of business and left it unable to service its debts. This should answer your question as to how Refco went bankrupt.

The fact that you didn't know this is only one more example, further demonstrating that you are speaking from ignorance.

One of your previous posts, in this thread, stated that all listed companies, including IB, are fraudulent, and that as a result, IB will continue to have legal problems and its stock price will drop. You can't support your allegations of fraud againt IB, and so you are now backpedalling. You are now claiming that you didn't slander IB or make inflammatory statements about it. If you can't even accurately remember what you yourself wrote, only a few hours ago, then you are obviously unable to express worthwhile opinions about IB. I hope people will recognize this, so as to help minimize any harm which might result from the babblings emitted by you and others.
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You obviously must of had a hard time with English.

Please go back, print each of my posts, take your time and compare. Use some crayons to underline and high lite for ease. NO where did I say all listed companies, including IB, are fraudulent, and that as a result, IB will continue to have legal problems and its stock price will drop! that is your interpretation and not what I said.

Everything you state about refco is hindsight.
If everyone knew what you are now stating do you think they would of been the largest and so successful. Do you think anyone would of underwrote the IPO and had institutional share participation etc etc
The 500 million made no difference to the day to day operations thus the reason it ran for so many years per IPO.
I agree once the shit hit the fan refco lost credibility but that was also fed by the media and the institutions who benefited while private shareholders lost. The stock had a 10 day moratorium place on it to only start trading 2-3 days later to be halted on a rally.?? long enough for a lot of the big boys to clean up. I have never seen where a stock was halted then allowed to trade and halted on a rally? total bs
I am not aware of one of the stock involved in backdating of options or that is/was out of nasdaq compliance delisted? why, not profitable.
There was no reason for us shareholders to lose funds the way we did but again that is my personal opinion and like you I am untitled to it.

I am very careful how and what I say unlike you.

I said and am saying we as traders have frauds committed on us daily by the corporations, brokers/banks etc
god man read or listen to the news, back dating of options, accounting errors, enron,refco, analysis updating or downgrades with no accountability or fiduciary responsibility etc.
I am guessing by your posts I am a lot older than you.
You know the definition of business...
being able to exact money from a man's pockets without resorting to violence.
that's what banks,brokers,insurance companies, mm, nyse specialist, slippage, gaps, and the corporate stocks we trade do to us. exact our funds with us having no recourse.

Do you actually even trade?
god help your mentor(s) if you have any.

w
 
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