Home » Stock Market Articles » REFCO FX RETAIL CLIENTS BAND TOGETHER TO SAVE FUNDS
REFCO FX RETAIL CLIENTS BAND TOGETHER TO SAVE FUNDS
17,000 Retail Clients, small everyday people from all over the globe have been left to watch as money that they were trading at REFCO FX a division of Bankrupt Futures Broker Refco sits in limbo with no say in what will happen.
/Stock Market PR News/ - March 29, 2006 - April 11, 2006 is the next important court date for RefcoFX, the foreign exchange division of bankrupt futures broker Refco. Refco an amalgumation of companies and divisions filed for Chapter 11 bankruptcy protection from creditors on October 17, a week after the firm accused chief executive Phillip Bennett of hiding $430 million of debt. The company is now selling assets to pay creditors claiming they are owed up to $16.8 billion.
Refco FX, LLC the foreign exchange trading trading subsidiary currently has the money of approximately 17,000 retail clients tied up in "frozen" accounts. This is not money that was invested in Refco nor given to Refco to invest for them, but rather funds held, "In Trust" for these retail clients.
Forex Captital Markets, LLC, "FXCM", had recently bid $110 Million for these 17,000 retail accounts and the 35% ownership stake which Refco FX has in FXCM. After the bid was rejected by Refco Creditors FXCM raised it's bid to $130 Million. The purchase by FXCM would make all 17,000 customers "whole" and allow them to withdraw their funds should they choose. This bid was again rejected recently which caused FXCM to walk away leaving all of these customers wondering what is going to happen to their money.
In an effort to band together, and be represented these RefcoFX retail account holders have formed a group on Yahoo at
http://finance.groups.yahoo.com/group/refcofxaccountholders. This group was just recently started after FXCM walked away from the negotiations. RefcoFX retail account holders are encouraged to visit the group and contribute with time and resources.
Reference:
- Congress has provided protection of client funds under Chapter 7 (liquidation bankruptcy).
- Refco Agrees To Sell Retail FX Assets to FXCM: http://quote.bloomberg.com/apps/news?pid=conewsstoryandrefer=conewsan ... c4hjbQz1a8
- A Refco sales representative assured an interested trader regarding the safety of his money with a letter, which was posted on the web: http://www.financial-spread-betting.com/Refcospot-forex-options.html
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