Knight Capital Group survived a near-death experience on Monday, lining up Wall Street firms to lend it badly needed cash after the brokerage lost $440 million last week when a malfunction in its trading system flooded the market with erroneous trades.
But the rescue, which came down to the wire, had a steep price: control of the firm. And it’s still not certain that Knight will make it through the episode intact.
“This is an isolated situation,” Knight’s CEO Thomas Joyce said on CNBC Monday morning. “We screwed up. We paid the price.”