Refco

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Refco
legal form
founding	1969
resolution	2005
Seat	New York City
Branch	Finances

Refco was a US company headquartered in New York City and a global derivatives trader that went bankrupt in 2005 . Refco was the largest broker on the Chicago Mercantile Exchange until the bankruptcy and is considered the second largest corporate scandal of listed companies in the United States after Enron .

He became known in Europe through high loans and equity investments from some banks (including the Austrian trade union bank BAWAG ). The last loan of 350 million euros was granted Refco in October 2005, just days before the Refco CEO Phillip Bennett for accounting fraud was arrested and Refco bankruptcy protection filed for. As security, BAWAG accepted 34% of Refco's shares from Bennett. Since the loan amounted to 10% of the bank's share capital and the relevant bodies were not involved, this led to the so-called BAWAG affair , in the wake of which the ÖGB top had to resign.

In April 2006 it became known that BAWAG was facing a billions lawsuit from the creditors of the collapsed US broker for possible aiding and abetting fraud. The first lawsuit called for $ 1.3 billion, plus additional claims. In June 2006, however, a settlement was reached that brought legal security against any class action lawsuits under US law for the sale of the bank, which was planned anyway . A new lawsuit by Refco creditors dated September 5, 2006, which only became known in Europe on September 19, 2006, affected other companies in the USA, but no longer Bawag.