[cake_crumb]

It was a trading company, not a bank. The company was powered by the Clinton school of economics. Refco's assets were based on valuation based on book cooking rather than hard currency. Its demise was so swift because investors knew Refco couldn't pay actual debts or cover assets with virtual cash.

[Burf]

That was the philosophy that Clinton had done away with the market cycles. Just make up the numbers you want and by the time it all shakes out, you'll be off on retirement living the good life.