Refco bidders were last week lining up to enter their names in the auction to buy some or all of the bankrupt brokerage firm on 9 November. But there remained serious concerns now over how much of Refco would be left to bid for.
Several FCMs contacted last week said the steady migration of customer accounts from Refco to other brokers was continuing, while many Refco sales account executives and marketing staff have already been poached or were looking to leave the firm. As sales people leave so do their books of business, FCM executives said.
When Refco filed for Chapter 11 bankruptcy protection, the firm and its creditors asked the courts for swift action on the matter. Even though legal channels have moved to auction off...