No matter how large the company, their activities can still bring it down. Yet some (many?) still do not realise that their activities will eventually see the light of day and that they should behave accordingly.
Even if they do not have the ethics to do the right thing, they should fear the results of not doing so. Will they never learn!
Those that continue to believe that the recent regulations have gone too far still need to show that that is the case. If anything, Refco shows the opposite.
Onésimo Alvarez-Moro
See article:Refco Inc., the futures broker under investigation for hiding a $430 million debt, filed for court protection from creditors in the fourth-largest U.S. bankruptcy.
Shares of Refco plunged, wiping out about $905 million in market value, after the company asked a U.S. bankruptcy court in Manhattan for permission to reorganize its $48.6 billion in liabilities. In the filing, New York-based Refco left out the units it plans to sell to a buyout group led by J.C. Flowers & Co. for $768 million.
Refco's collapse comes 10 weeks after it sold shares to the public for the first time, and may set up a contest between the Flowers group and the government of Dubai, whose offers to purchase the whole company have been rebuffed.
See full Article.
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