Tag: Refco

It’s impossible to read about the demise of MF Global and not think about Refco, the futures brokerage that collapsed in scandal in 2005 and whose remains were later bought by MF Global.   Like Marley’s ghost, the weaknesses that played a part in Refco’s downfall returned to haunt MF Global. Refco’s problems came to light just a few months after it completed an initial public offering in August 2005 that valued the company at $3.5 billion.   A short time later, the firm discovered that CEO Phillip Bennett had maintained control of a separate entity that wasn’t consolidated with Refco’s books and held $430 million in Refco debt.  When Refco disclosed the debt in October 2005, just eight w... Read More