Monday, Jun 27, 2016
One of America's Great Newspapers ~ Toledo, Ohio

Stock Market

Threatened brokerage lines up Wall St. lenders

NEW YORK — Knight Capital Group survived a near-death experience Monday, lining up Wall Street firms to lend to it. The brokerage lost $440 million last week when a malfunction in its trading system flooded the market with erroneous trades.

But the new investors, led by the Jefferies Group, as well as Blackstone, a big private equity firm will gain a 73 percent stake in the company, which takes orders from big brokers such as TD Ameritrade and E-Trade, and will receive three board seats.

And Knight still faces a difficult task of rebuilding trust with clients and convincing regulators that Wednesday's disaster was an anomaly.

Its stock has plunged 70 percent since last Tuesday, before the glitch happened.

Click to comment

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem?

Temporibus autem quibusdam et aut officiis debitis aut rerum necessitatibus saepe eveniet.

Copyright © 2015 Toledo Blade

To Top

Fetching stories…