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Knight Capital Says Trading Glitch Cost It $440 Million
$10 million a minute.
Thats about how much the trading problem that set off turmoil on the stock market on Wednesday morning is already costing the trading firm.
The Knight Capital Group announced on Thursday that it lost $440 million when it sold all the stocks it accidentally bought Wednesday morning because a computer glitch.
Documents: Knight Capital's statement
Runaway Trades Spread Turmoil Across Wall St.
The losses are threatening the stability of the firm, which is based in Jersey City. In its statement, Knight Capital said its capital base, the money it uses to conduct its business, had been severely impacted by the event and that it was actively pursuing its strategic and financing alternatives.
The losses are greater than the companys revenue in the second quarter of this year, when it brought in $289 million.
http://dealbook.nytimes.com/2012/08/02/knight-capital-says-trading-mishap-cost-it-440-million/?hp
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And you thought it only happens in the movies .....
Enrique
(27,461 posts)does that mean that someone else gained that much?
MindMover
(5,016 posts)the answer is generally yes, however, it could be more or less depending ....
BadgerKid
(4,553 posts)to be an acquaintance of hedge fund traders who made several 100K's. Interesting, but hearsay regardless.
Atman
(31,464 posts)Imagine how average Americans feel when they lose their entire savings and pensions and 401ks because of your bullshit scams?
Cry me a fucking river.
.
LiberalAndProud
(12,799 posts)I guess I'm concerned that the Market might punish bad trading decisions, since it's the nature and function of the beast.
It was an accident!
orwell
(7,775 posts)...these jerks have screwed more people than a porn star at a Republiclown convention.
They are market makers who dabble in many OTC securities where they manipulate markets with the size they trade.
I hope they go buy-buy..
bemildred
(90,061 posts)JHB
(37,161 posts)...has it been verified that it was indeed a computer glitch, and not a "glitch" as cover for some shuffling of money into some well-connected pockets?