Quote from areyoukidding?:
sounds like a direct quote from the ceo of their competition.
Regardless of the source, the statement remains true. A simple transfer of cash and positions, might avoid long delays and the process in getting your money back. Problem is that if Refco goes down (and that is an IF), while the funds maybe protected, customers can't trade for some period of time, and that's a risk that a simple transfer out can avoid.
Agreed that the Refco competitors, the MAN, GHCO, FIMAT, are dancing on the pending doom right nownow. I am sure that all the senior people from these firms are wandering the halls and telling anyone that Refco is doomed and switch to their firm is a much safer option, and for once, they are right. Refco would do the *same* if one of them is in trouble. Heck, Stan O'Neal (current Merrill CEO) made his name in high-yield banking by literally parking a van in front of Drexel Burnham Lambert, hiring DBL bankers and soliciting DBL clients when they got into trouble.
Regardless of what happens, Refco will emerge from this a substantially reduced firm, or just be swallowed up. It is a bit sad, but when the CEO commits fraud, that's what the firm deserves.
