Two Weeks On

There is a slight bit of clarity emerging re Bennett's assumption of $430 million of Refco debt. It looks as though he took on the debt from people who could not pay what they owed Refco, i.e., bad debts that would be charged to the company. Since it appears as though the practice started in 1998, it looks as though Bennett may have felt that if he could have kept things secret for seven years, he could maintain that secrecy and eventually he would be able to get out from under. And, he was able to conceal things from Thomas Lee and the underwriters.