Jim p and other RRI holders - I wonder if the banks were pushing them to get out of the trading business, and RRI management was telling the banks they had everythig under control...and then this blow up.
I get the feeling RRI may have had to close out some longer term long postions - for maybe late summer or next winter, which they thought could go up a lot, and that made the loss larger. They might have been upset with having to do that, and wrote a different and longer press release. Then the press release goes back and forth between legal and P.R., gets shorter and more terse, and finally getrs cut loose. Nobody senior looked at the last cut hard enough, or they kept remembering the longer verision, and did not see thatt the shorter version makes them look dumb.
Alternative spin is someone in management wants to get rid of people associated with trading, and this makes it much easier. Watch and see if not only the trading group goes, but some other executives decide to pursue other ventures.
Possible good news here is they are out of trading, lowering risk, and possibly lowering their borrowing costs.
My guess is we are only a few days away from a re financing announcement. |
