Refco Trader Job

[KennyBanya]

Heres the story,

My wife has an awesome job offer in the Chicago area. The offer is close to our combined income now.

A friend tells me he can get me in as a "trader candidate" with Refco. Very low pay to start lots of training and high earnings potential based on becoming a winning trader.

Anyone who is familiar with this firm please respond with pros, cons etc., of this opportunity.

We have no kids, so low pay to start is not an issue for us.

Thanks,

KennyBanya

[goodguy_1]

ahh Refco-the stock crashed earlier today you should already know this:RFX

Refco May Restate Results, CEO on Leave
Monday October 10, 6:50 pm ET
Refco May Restate Results, CEO on Leave After Secretly Transferring $430 Million of Company's Assets


NEW YORK (AP) -- One of the world's biggest commodities brokerages Monday said its chief executive took an indefinite leave of absence after the company discovered he had secretly transferred $430 million of the company's assets to a firm he controlled.

Refco Inc. also said its financial statements since 2002 "should no longer be relied upon" and that it would delay filing its quarterly earnings release originally slated for next week.

The news sent Refco shares plunging $12.96, or 45 percent, to close at $15.60 on the New York Stock Exchange.

Refco, which became a publicly traded company in August, said Phillip R. Bennett has repaid the money -- debts owed the company -- in cash, plus interest. It isn't clear what motive Bennett may have had for the transaction, which Refco said involved Refco Global Holdings Inc., a company Bennett set up to hold his personal stake in Refco Inc. stock.

New York-based Refco declined to be specific about the money Bennett had transferred, but referred to it in a news release as "certain historical obligations owed by unrelated third parties ... which may have been uncollectible," implying that at least some of the assets were bad debts.

Bennett took a leave at the request of Refco's board. Also taking a leave was Santo Maggio, the head of the brokerage's securities arm who company officials said knew of Bennett's dealings.

The company promoted three longtime executives to fill both positions on a permanent basis. William Sexton -- an executive vice president who in September had announced plans to retire -- was appointed to stay on as CEO. Joseph J. Murphy will become president and take over one Maggio's posts as head of Refco Capital Markets. Peter McCarthy will take over Maggio's other title, as president of Refco Securities.

Bennett referred a telephone call for comment to his lawyer, who declined comment.

Sexton and Scott Schoen, a Thomas H. Lee Partners executive who sits on Refco's board, said in an interview that no one knew Bennett's investment fund owed the company the money until late last week.

Schoen is heading a new executive committee of Refco's board, which is investigating the matter. Thomas H. Lee, a private-equity firm, helped Refco go public, and it remains Refco's largest shareholder.

[KennyBanya]

Thanks good guy. I had no idea about that. I am still considering going to work there, at least i will gain some experience trading.

Peace,

KennyBanya

[goodguy_1]

Kenny you may also find this helpful: Refco Account Security This is a pretty good site if your interested in daytrading equities or futures.

Not sure what your interested in but Refco are huge in futures. If you are young and want to eventually trade equities for yourself rather than working for a firm as a marketmaker,trader/sales-trader. These links are a good place to start:

Schonfeld

or

SLK-Redi

I would stick to equities/options over commodities/futures--you'll have a better chance at success.

[zipo]

>>One of the world's biggest commodities brokerages Monday said its chief executive took an indefinite leave of absence after the company discovered he had secretly transferred $430 million of the company's assets to a firm he controlled.<<

Wow. It takes a big set of balls to steal that kind of money.

nh.

[Sniper]

[ QUOTE ]
Wow. It takes a big set of balls to steal that kind of money.

[/ QUOTE ]

He didn't steal it, he just ummm borrowed it temporarily... it was all paid back with interest, already! [img]/images/graemlins/smile.gif[/img]

[DesertCat]

Some Refco clients have had their accounts frozen (to ensure there is enough money to pay creditors), so it's business is crumbling very rapidly. The company appears headed for bankruptcy. What may happen is that a large investor (Tom Lee?) will inject a massive amount of cash in return for ownership so Refco can continue on.

But note, the $430M in "loans" is reportably actually bad debt from prior clients. Essentially this would mean it's last ten years of earnings have been overstated. If it's core businesses aren't really making any money, it implies that a substantial change is coming, i.e. your position at high risk of being "jettisoned".

Lastly, it is a very recent IPO, and if those allegations are true this may be one of the clearest cases of shareholder fraud in recent memory. That means massive civil suits and damages, not the usual "slap on the wrist", wink, wink, nudge, nudge, pay off the lawyers with a few mil shareholder suits. This huge liability may forestall any heroic bailout by Tom Lee or anyone else.

Other than that, I see no reason why you shouldn't take the job

[DesertCat]

Here is the first paragraphs, you should read the whole thing.

"Commodity Broker
Starts to Unwind
A Major Business
Refco, Its Ex-CEO Charged,
Could Still Be Rescued
As Regulators Push for Aid
No Broad Market Risk So Far
By IANTHE JEANNE DUGAN and SUSANNE CRAIG
Staff Reporters of THE WALL STREET JOURNAL
October 15, 2005

The crisis surrounding the big commodities brokerage firm Refco Inc. swiftly intensified yesterday, with banks and securities firms scrambling to see if the firm could avert failing outright.

Refco began unwinding customer positions at one of its securities units. The action came shortly after Refco froze activity for 15 days at another of its business units. Meanwhile, credit-rating firm Standard & Poor's Corp. said the company was "highly likely" to default on its rated debt."