Thu Aug 2, 2012, 04:18 PM

MindMover (2,798 posts)

SELL, SELL, SELL for the love of God, SELL ...

Last edited Thu Aug 2, 2012, 04:22 PM USA/ET - Edit history (1)

Knight Capital Says Trading Glitch Cost It $440 Million

$10 million a minute.

That’s 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 company’s 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 .....

8 replies, 959 views

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8 replies	Author	Time	Post
SELL, SELL, SELL for the love of God, SELL ... (Original post)	MindMover	Aug 2012	OP
if they lost that much	Enrique	Aug 2012	#1
Well, depending upon which balance sheet you are using ....	MindMover	Aug 2012	#2
I read one poster claiming	BadgerKid	Aug 2012	#5
Awww....how sad for you, Knight.	Atman	Aug 2012	#3
Is this cause for mourning or celebration?	LiberalAndProud	Aug 2012	#4
Good riddance...	orwell	Aug 2012	#6
It takes a computer to really screw things up. nt	bemildred	Aug 2012	#7
Not to be all tinfoil hatty, but this IS Wall Street wheeler dealers we're talking about...	JHB	Aug 2012	#8

Response to MindMover (Original post)

Thu Aug 2, 2012, 04:23 PM

Enrique (22,593 posts)

1. if they lost that much

does that mean that someone else gained that much?

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Response to Enrique (Reply #1)

Thu Aug 2, 2012, 04:25 PM

MindMover (2,798 posts)

2. Well, depending upon which balance sheet you are using ....

the answer is generally yes, however, it could be more or less depending ....

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Response to Enrique (Reply #1)

Thu Aug 2, 2012, 04:33 PM

BadgerKid (3,725 posts)

5. I read one poster claiming

to be an acquaintance of hedge fund traders who made several 100K's. Interesting, but hearsay regardless.

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Response to MindMover (Original post)

Thu Aug 2, 2012, 04:26 PM

Atman (26,044 posts)

3. Awww....how sad for you, Knight.

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.

.

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Response to MindMover (Original post)

Thu Aug 2, 2012, 04:26 PM

LiberalAndProud (9,879 posts)

4. Is this cause for mourning or celebration?

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!

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Response to MindMover (Original post)

Thu Aug 2, 2012, 04:59 PM

orwell (5,711 posts)

6. Good riddance...

...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..

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Response to MindMover (Original post)

Thu Aug 2, 2012, 05:39 PM

bemildred (67,476 posts)

7. It takes a computer to really screw things up. nt

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Response to MindMover (Original post)

Thu Aug 2, 2012, 05:47 PM

JHB (17,791 posts)

8. Not to be all tinfoil hatty, but this IS Wall Street wheeler dealers we're talking about...

...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?

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