Friday, October 14, 2005

Rogue Trading

Refco has made some negative headlines lately, and its public listings status remains in jeopardy. Many corporate frauds have come out in the recent years and in various forms. My best guess is that Refco's thing is probably more like that of the Barings Brothers back in the mid 90s. I'm not sure, but Phil Bennett seems to have pulled a Nick Leeson who fraudulently hid huge losses when he made some poor speculation after another. We all make mistakes, but Leeson and Bennett pulled some incredibly ballsy blunders. Some of you may know what happened to Barings Brothers. It closed its doors, and ING bought it out. I heard ING got rid of the Barings name and assets earlier this year. Perhaps Refco will face a similar fate.


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