In August 2005, the largest broker on the CME went public on the NYSE at a $4 billion valuation.
67 days later, that same company was bankrupt and its CEO was under arrest.
This is the story of Refco 
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AFTERMATH: 1) CME issued statements calming public concern about impact to the exchange. Competing brokers filled Refco's gap. 2) Refco's underwriters were sued on grounds they didn't vet the company pre-IPO. 3) CEO Bennet was released from prison in May 2020 over COVID fears.
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Sources: https://slate.com/business/2005/10/how-a-4-billion-company-collapsed-in-a-week.html … https://www.sec.gov/Archives/edgar/data/1321746/000104746905019982/a2156229zs-1a.htm …http://investor.cmegroup.com/index.php/news-releases/news-release-details/cme-statement-refco-llc-and-cme-financial-safeguards-system …
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What happened to the underwriter lawsuit? I assume they settled? How did he get caught initially? Auditors? Investigative journalist?
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(Love these stories by the way.)
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Ticker RFX... I think he was in a blue hoodie when arrested. Took down Bawag in Austria, too. Anticipated MF by 5 years or so.
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