Editor's Note: Who the heck are these 'Keystone Cops' traders everywhere in London and on Wall Street that keep losing billions of their clients' money through erroneous trading positions? ERRONEOUS TRADING POSITIONS!!!!!!!!!!!!!!!!!!!!!!!!!!!! That's like saying a pilot crashed the plane by ERRONEOUSLY raising the landing gear instead of lowering it! Are these guys that incompetent; if they are, how did they get these positions? Should not the regulators and shareholders be screaming for answers at the top of their voices? Should the CEO's that allowed such incompetence (or Fraud) at their firms not be charged with negligence at least, and even with criminal negligence? The fact that no one at the head of firms like MF Global, JP Morgan, Barclays and others have been held accountable since the Global Financial Crisis began in 2007 speaks volumes of the FRAUD in the System. It is rotten from the bottom to the top, and expect to hear many more such horror stories before the ending whistle is blown on this game!
(Reuters) - Knight Capital Group Inc is being forced to raise money after an erroneous trading position wiped out $440 million of its capital, the firm said on Thursday, causing its shares to shed half of their value.
Problems at Knight, one of the largest firms that buys and sells stocks to provide liquidity to the markets, emerged at the beginning of trading on Wednesday.
"The company is actively pursuing its strategic and financing alternatives to strengthen its capital base," Knight said in a statement. Its shares were down 49.7 percent at $3.49 in morning trading after hitting an all-time low of $3.15.
Knight has already approached JPMorgan Chase & Co for financing, according to a report on Fox Business Network. But it was unclear if that financing would be granted. A spokesman for JPMorgan declined to comment.