Imperiled Knight Capital Won't Find Savior In Bankruptcy

Law360, New York (August 2, 2012, 5:56 PM EDT) -- News that Knight Capital Group Inc. could lose $440 million from a computer glitch that paralyzed stock markets Wednesday sparked talk of a possible bankruptcy filing, but experts said the trading firm was better off courting a white-knight buyer or other friendly investor.

Knight Capital, which uses a complex system of computer algorithms to trade in huge volumes of stocks and specializes in market-making, was blamed Wednesday morning for wild swings in the stocks of 140 companies. The New York Stock Exchange was forced to step...
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