Knight Capital Group Rescued By $400 Million Investor Cash Infusion

Aug 6 (Reuters) - A group of investors will rescue embattled market maker Knight Capital Group Inc in a $400 million deal that keeps the company in business, Knight said on Monday, but comes at a huge cost to investors.

The firms will buy 2 percent convertible preferred stock to save Knight, which was brought to its knees last week by a software glitch that caused errant trading in dozens of stocks. The deal is expected to close later Monday morning.

Comments

[LunaPark]

03:01 PM on 08/06/2012

How much government/Federal Reserve money is involved, probably through Fed agent banks (JP Morgan et al) ? ...Oh yea, we're not allowed to Audit the Fed.

[drkazmd65]

01:03 PM on 08/06/2012

I wasn't a 'rescue' mission. It was a leveraged pseudo-takeover of the company.

The terms on those convertable securities they signed over to get the cash will suck the life out of Knight - it has just prolonged the life-support unless they can generate huge returns to pay off their new creditor buddies.

The Cannibals are in the process of cooking and preparing their next meal.

[Skeetshooter]

12:07 PM on 08/06/2012

These dinosaurs should be allowed to go extinct when they drop asteroids on themselves.

[meteorlima]

11:09 AM on 08/06/2012

Not their fault, They did not build the business by themselves. Place the blame where it belongs...It's Bush's fault.

[blurredmolly]

10:22 AM on 08/06/2012

what do they do? venture Capital?

[drkazmd65]

01:07 PM on 08/06/2012

Among other things - they are/were what is termed a "Market Maker". They are one of the firms that do much of the actual trading back and forth of stocks in the stock markets - both on their own behalf (where they screwed up last week) and for clients who also wish to make trades for whom they act as a middleman (for a fee of course).

[blurredmolly]

05:06 PM on 08/06/2012

thanks

[authorized-user]

09:32 AM on 08/06/2012

This bailout would have saved Solyndra or many other manufacturers and saved hundreds of jobs.

The US financial industry does everything it can to save it's own while undermining every other business.

[spinotter11]

09:09 AM on 08/06/2012

Why would anyone invest $400 in such a loser of a company?

[Skeetshooter]

12:09 PM on 08/06/2012

Because they're too big and too crony connected to fail! This is despicable.

[RazSilberman]

08:28 AM on 08/06/2012

Maybe now we will see the JP Morgan losses and their risk management in a more reasonable view. Whatever they have done have never put the company at risk and their risk management system stopped it, albeit a little slower than it was supposed to - $5.8 Billion or 30 Cents? JP Morgan Loss Revisited - http://rsilberman.com/?p=456.

The fact that a business can disappear within a day because of a computer system lack of proper risk management is just amazing and disturbing. How many others like are out there that are waiting to explode?