soxfirst
The Refco lawsuit
Filed in archive litigation by leon on August 22, 2007
10044562.jpg
Earlier this month, I talked about Refco's delinquent community, and about how many people were colluding. Everyone seemed to have a slice of the action that sent the company to the dogs. At the time, I quoted New York Times columnist Floyd Norris who made the excellent point that it could turn into a legal quagmire.

And now we're seeing the start of it.
Refco's trusts are now suing bankers and auditors for $2 billion, reports Bloomberg.

And it's a big one. Bank of America, Deutsche Bank AG and Credit Suisse Group, and the beancounters PricewaterhouseCoopers, Ernst & Young and Grant Thornton are all getting sued. And going by the report, they're ducking for cover.

Trustee Marc Kirschner summed it up neatly

"This conspiracy went on for seven years, and as it turned out, many of the most well-known names in law, finance and accounting were involved...The scheme could only have worked with this cadre of outside advisers."

This is a big one. It's going to be messy but if Kirschner pulls this one off, the fallout could be huge. And it won't just be because of the payout. It will send a signal to auditors, bankers and lawyers working with other dog companies to watch out.

Related Entries:

Permalink: The Refco lawsuit
Tags: Refco  lawsuit  refco  corporate  2007  refco+lawsuit  management+compliance  please+enter 
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/87629
img Addthis img Ask img Blinklist img del.icio.us img Digg img Fark img Facebook img Google img Lycos img Ma.gnolia Add this page to Mister Wong Mr Wong img Netscape img Netvousz img Newsvine img Reddit img StumbleUpon img Slashdot img Tailrank img Technorati img Wink img Yahoo

Vote for The Refco lawsuit:

  • Currently 10.00/10
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
Rating: 10.00 out of 2 vote(s) cast.
 
Subscribe
Share It
RSSrss
See all blog subscribe options
Google google
What is RSS?
Yahoo! yahoo
Addthis Subscribe using any feed reader!
Bloglines Bloglines
Newsletter

TwitterFollow us on Twitter!