Money and Metals

The clouded world of derivatives is seeing some light this morning. "Refco, Inc. provides execution and clearing services for exchange-traded derivatives; and brokerage services in the fixed income and foreign exchange markets in the United States, Bermuda, and the United Kingdom. It provides these prime brokerage services primarily in the U.S. Treasury securities, foreign exchange, and non-dollar fixed income markets."

"Refco Inc. shares fell as much as 39% on Monday after the derivatives trading firm said it'll delay an upcoming financial report amid an audit committee investigation that resulted in the company's chief executive taking a leave of absence and a repayment of $430 million to the company."

"Refco said it believes that the $430 million receivable was the result of the assumption by an entity controlled by Bennett of 'certain historical obligations owed by unrelated third parties to the company, which may have been uncollectible.'"

"The company, which went public in August and is one of the world’s largest and most powerful commodities dealers, also said it would probably delay filing its 10-Q quarterly financial statement with securities regulators for the quarter ended Aug. 31."