8 days to collapse

A timeline of the troubles at commodities broker Refco Inc., which has filed for bankruptcy protection. MONDAY, OCT. 10:

Refco announces a $430 million (U.S.) accounting discrepancy. Chief executive Phillip Bennett repays the $430 million, plus interest, but is placed on leave. TUESDAY, OCT. 11:

The board of directors alleges the discrepancy was the result of Bennett funnelling bad debts owed to Refco through other entities he controlled to give the appearance that the debts were actually assets to the company. Bennett is arrested by authorities. WEDNESDAY, OCT. 12:

A federal grand jury indicts Bennett on one count of securities fraud. He is freed on a $50 million bond. THURSDAY, OCT. 13:

Refco freezes customer accounts at its offshore broker/ dealer subsidiary for 15 days, trying to keep customers and their cash from fleeing the company. Former Securities and Exchange Commission chairman Arthur Levitt is brought in as a consultant to the board of directors. Trading in Refco is halted on the New York Stock Exchange. FRIDAY, OCT. 14:

Refco Securities LLC, another subsidiary, announces it is liquidating all of its stocks, bonds and other holdings. The commission issues an order preventing Refco from easily moving large amounts of capital from Refco Securities and another regulated subsidiary. Regulators urge Goldman Sachs Group Inc. to buy Refco, but Goldman declines. SATURDAY, OCT. 15:

Talks begin with private buyout groups to salvage Refco’s commoditiestrading business. SUNDAY, OCT. 16:

J. C. Flowers & Co. leads a group that becomes the front-runner. MONDAY, OCT. 17:

Refco announces the Flowers-led group will purchase Refco’s commoditiessubsidiary. The rest file for protection.