Knight Capital Raises $400M After Trading Flub

Law360, New York (August 6, 2012, 2:42 PM EDT) -- Knight Capital Group Inc. said Monday it has raised $400 million in capital after an alleged computer glitch drained the Jersey City, N.J.-based financial services firm's reserves, a potentially company-saving deal.

The money, from Jefferies Group Inc., TD Ameritrade Holding Corp. and others, will allow Knight to continue operating after it took out a massive erroneous trading position Aug. 1. The firm blamed the trade, which cost it $440 million pretax, on a software issue.

Knight received the capital infusion before the markets opened Monday, it...
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