Posted on 10/21/2005 9:45:55 AM PDT by Positive
Refco, one of the largest futures trading firms in the world has declared bankruptcy and its chairman is being charged with a number of felonies.
The following paragraph from a Washington Post article might jog the memories of some of us older timers.
A close examination of her individual trades underscores Blair's pivotal role. It also shows that Robert L. "Red" Bone, who ran the Springdale, Ark., office of Ray E. Friedman and Co. (Refco), allowed Clinton to initiate and maintain many trading positions – besides the first – when she did not have enough money in her account to cover them.
Reminds me of the old saying of lying with dogs and catching fleas...of course if you are ALREADY a dog with fleas it doesn't matter much.
(Excerpt) Read more at washingtonpost.com ...
"A close examination of her individual trades underscores Blair's pivotal role. It also shows that Robert L. "Red" Bone, who ran the Springdale, Ark., office of Ray E. Friedman and Co. (Refco), allowed Clinton to initiate and maintain many trading positions – besides the first – when she did not have enough money in her account to cover them."
Well presumably those trades were one side of offsetting trades (long and short the same contract) that the firm put on to facilitate a payoff from party A to the clintons, so there was no real risk.
When a trader is undermarginalized in trading futures, Hitlery HAD to have someone with money guarantee her account. In other words, if she lost money by buying on margin, someone else with lots of money in the background would have to put up the money. Who that was is anyone's guess? Perhaps, Tyson's Food.
Was going to sink a load into Refcofx but coincindences kept getting in the way. Would've lost a ton...
Oh, you understand it correctly, Tyson was a bonafide hedger so...all Bone had to do was to write the account numbers on the order tickets at the end of the day to get the money transferred from Tyson to Klinton.
and it was a tax loss for the party paying the payoff as well, so everyone was happy!!
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