Refco faces more woes as FX unit sale falls through
Bankrupt financial services group Refco has failed to sell its foreign exchange brokerage, and its securities broking arm has been ordered to pay $122 million compensation to a Russian customer.
Forex Capital Markets' chief executive, Drew Niv, blamed indecision on the part of Refco's creditors: "We knew the creditors were unhappy with our bid, but every time we raised it, they would not give us a firm counter-offer with a real price attached to it," he told a financial newswire.
Meanwhile, the UK High Court ordered Refco Securities to pay Russia's largest bank, OAO Sberbank, $122 million for failing to return Russian government eurobonds Refco was holding as collateral on a loan to Sberbank.
Refco filed for bankruptcy in October last year after accountants discovered $430 million in concealed debts. Chairman and chief executive Phillip Bennett is now on trial, having pleaded not guilty to charges of fraud.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Shared deposit networks eye ‘$2 trillion’ extra capacity
Following post-SVB boom, loosening restrictions expected to lead to gradual rise
Dispute emerges over ‘ambiguity’ of perp markets
Kalshi execs hit back at report’s findings of regulatory fogginess
EBA brainstorming ways to make capital rules competitive
Watchdog aims to provide advice on future revisions before year-end
FRTB revamp won’t restore models to past glory, risk managers say
US-inspired reform only expected to lead to small boost in adoption, with limited desks on IMA
Regulators must think bigger to tackle tech risks, says Hong Kong SFC
Leung warns AI adoption and recent cyber scares show new threats require global co-operation
Time to let some air out of the banking system?
Watchdogs worry about lowering standards, but policy-makers eye growth – they face a difficult dilemma
Competitiveness mandate for Esma faces uphill battle
European Parliament offers last chance to force Esma to take more nuanced approach
Europe expects FRTB to bite on XVA hedges
Risk Benchmarking: One-third of European dealers fear new market risk rules will have major effect on hedges
