Refco Hires Advisors
Thursday October 13, 11:29 am ET
Reaffirms Regulatory Capital at Refco LLC and Refco Securities LLC Announces a 15 Day Moratorium on Customer Withdrawals at Refco Capital Markets, Ltd
NEW YORK, Oct. 13 /PRNewswire-FirstCall/ -- Refco Inc. (NYSE: RFX - News) today announced that it has retained Arthur Levitt, formerly Chairman of the Securities and Exchange Commission and Chairman of the American Stock Exchange, and Eugene A. Ludwig, formerly U.S. Comptroller of the Currency, and currently Chief Executive Officer of Promontory Financial Group LLC, and Promontory Financial Group LLC as special advisors to its board of directors.
Refco also announced today that it has retained Goldman, Sachs & Co. as its financial advisor.
The Company stated that the regulatory capital and excess regulatory capital of Refco, LLC, its regulated Futures Commission Merchant, and Refco Securities, LLC, its regulated Broker Dealer, have been substantially unaffected by the events of this week. The business at these subsidiaries is being conducted in the ordinary course including customer deposit and withdrawal of segregated funds.
In light of recent events, the liquidity within the Company's non regulated subsidiary Refco Capital Markets, Ltd., which represents a material portion of the business of the Company, is no longer sufficient to continue operations. The Company has therefore imposed a 15 day moratorium on all activities of Refco Capital Markets, Ltd. to protect the value of the enterprise. |
