Refco's Empty Requiem

Updated from 2:20 p.m. EDT

The maneuvering around Refco's(RFX Quote) tattered remnants played as sideshow Tuesday to bigger questions about the newly public company's stunning collapse.

Yes, Refco Inc.'s Chapter 11 filing and an agreement to unload its futures operation to a consortium led by hedge fund J.C. Flowers are making headlines around Wall Street. Its new chairman, former J. Aron chief Mark Winkelman, announced earlier that Refco "has a tremendously bright future ahead of it."

But the real story remains how a cadre of well-paid accountants, Wall Street bankers and corporate lawyers failed to notice that CEO Phillip Bennett was allegedly cooking the books for the better part of a decade. ...