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) 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. About Refco Inc.
Refco Inc. (NYSE:
RFX) is a diversified financial services organization
with operations in 14 countries and an extensive global institutional and
retail client base. Refco's worldwide subsidiaries are members of principal
U.S. and international exchanges, and are among the most active members of
futures exchanges in Chicago, New York, London and Singapore. In addition to
its futures brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market debt, and OTC
financial and commodity products. Refco is one of the largest global clearing
firms for derivatives. For more information, visit
http://www.refco.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of the 1995. In this press
release, all statements other than statements of historical fact are forward
looking statements that involve risks and uncertainties and actual results
could differ. These forward-looking statements are based on assumptions that
we have made in light of our experience and on our perceptions of historical
events, current conditions, expected future developments and other factors we
believe are appropriate under the circumstances. Although we believe that
these forward-looking statements have a reasonable basis, you should be aware
that numerous factors, including the outcome of the Audit Committee's
investigation; our ability
to obtain financing arrangement or alternatives;
changes in domestic and international market conditions; competition; our
ability to attract and retain customers; our relationships with introducing
brokers; retention of our management team; our ability to manage our growth or
integrate future acquisitions, our exposure to significant credit risks with
respect to our customers, international operations and exchange membership
requirements, the effectiveness of compliance and risk management methods,
potential litigation or investigations, employee or introducing broker
misconduct or errors, reputational harm, and changes in capital requirements,
could cause actual results to differ materially from our expectations.
Because of these factors, we caution that you should no place undue reliance
on any of our forward-looking statements. Further, any forward looking
statement speaks only as of today. It is impossible for us to predict how
new
events or developments may affect us. The Company disclaims any intention or
obligation to update or revise any forward-looking statements, either to
reflect new information or developments or for any other reason.
SOURCE Refco Inc.