Refco Execs go to Jail

In the latest court move by former Refco officers, Robert Trosten, Refco's former chief financial officer, is the third Refco executive to plead guilty to charges of fraud and conspiracy. He is cooperating with prosecutors and faces up to 30 years in prison for bank fraud and 20 years for securities- and wire-fraud.

In mid February, Phillip Bennett, former CEO of Refco Inc., pleaded guilty to 20 counts of fraud, conspiracy, securities fraud, bank fraud and falsifying filings with the Securities and Exchange Commission (SEC). He was sentenced to 315 years in prison. This follows executive VP Santo Maggio's confession in December, which led to him giving back $23 million. Former Refco President Tone N. Grant and Mayer Brown lawyer Joseph P. Collins still are facing charges and are maintaining their innocence.

Customer Connections - The Heart of the Hedge

By Chris McMahon While hedge funds are better known for seeking alpha than philanthropy, many channel their generosity through innovative non-profit organizations and foundations. They just do not usually talk about it. With the economy limping, charities are concerned. The 2008 Study of High Net Worth Philanthropy found that between 2005 and 2007, charitable giving increased for nearly all high net-worth households, except for those with $5 million or more in income. The study said charitable giving dropped 9.7 percent, to $80,249, for those households in 2007 from $88,845 in 2005, after adjusting for inflation. That was before the recession. While many fear charitable giving will decline even more in the face of the global economic downturn, hedge-fund sponsored philanthropies appear to be weathering the storm better than most. Philanthropy professionals say it is due in large part to the active participation by hedge fund leadership in such organizations. << Read th

Dollar Recovery: Real or Illusionary?

Note: This feature length cover story by Chris McMahon originally appeared in the April 2009 issue of Futures Magazine. Dollar Recovery: Real or Illusionary? Link to original @ Futures Magazine With the U.S. dollar index trading in the low 70s through much of 2008, the Bush administration's so called 'strong dollar' policy had become a running joke. But the weak U.S. dollar served an important function, lubricating the global economy, and was one of the main propellants of the rise in commodity and equity prices. It took the bursting of the housing and credit bubbles and the resulting flight to quality to make the U.S. strong dollar policy real. "Because people needed to raise cash immediately, they panicked and liquidated the only other asset they had: their investments. And for most people, 90% of that is stocks and bonds," explains Jason Alan Jankovsky, analyst and trader for Core Financial Group. "Now everyone thinks it's the end of the world

The Year of the Ox: Is It a Bull for China?

Note: This feature length cover story by Chris McMahon originally appeared in the November 2009 issue of SFO Magazine. Link to original @ SFO Magazine “At this critical juncture of countering the financial crisis, I called for perseverance, as perseverance will lead us to final victory. The dark cloud of the financial crisis will disperse. Let us work together for a more splendid future.” The Year of the Ox: Is It a Bull for China? ~ Chinese Premier Wen Jiabao In Chinese astrology, 2009 is the year of the ox, a symbol of wealth created by strength, hard work and perseverance. Those born under the sign of the ox are thought to be quiet, patient and determined. That’s an auspicious sign for China’s stimulus plan and newly resurgent economy. But those born under the sign are also thought to be stubborn, eccentric and quick to anger. As the global economic slowdown approaches the end of its second year, China’s economy appears to have pulled out of the downturn and to have don

Chris McMahon, MSJ

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