Money and Metals

The Independent has an update on the Refco situation. "Goldman Sachs and other advisers to the embattled US brokerage Refco continued frantic emergency meetings yesterday to discuss how to save the firm, with bidders including the UK's Man Group circling."

"It seems likely that the brokerage group will be broken up, with the weekend's talks focusing on saving the main futures and commodities trading operations. Goldman has compiled a document detailing Refco's assets and liabilities in the hope of attracting buyers for the regulated futures business, while other parts of the group may have to file for bankruptcy."

"The closure of Refco's other businesses has undermined confidence in the futures division with signs of increasing client defections. Futures industry officials are anxious for Goldman, and other financial firms, to shore up the futures arm to ensure its survival, either through a quick sale or by assuming financial responsibility."

"Refco's rapid decline - until last week it was one of the world's largest commodities and futures brokers, reflects how crucial reputation is for a securities firm, which relies on client trust."