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Scary, Scary Knight: Prime Brokers Start Pulling Cash

Tyler Durden's picture




 

Update 2: and spreads some more: Sterne Agee Not Routing Trades to Knight Capital

Update: it spreads: Fidelity Investments Not Routing Orders Through Knight: Reuters

Earlier, when interviewed by Bloomberg TV, Knight Capital CEO refused to say, prudently under advice of counsel, if any counterparties have cut off their lines to the fallen Knight. Well now we can confirm with 100% certainty that at least one Prime Broker has terminated all funding to and fro the firm which may not have much time left. We are certain it is not the only one. And now the scramble for a deal is on. If Lehman and MF Global are any indication, the odds are good to quite good. Inversely of course, just like Knight's berserk algo yesterday.

And now for some Don McLean meditation:

 

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Thu, 08/02/2012 - 12:53 | 2672758 ACP
ACP's picture

It's just a flesh wound!

A flesh wound? Your arm's off!

Thu, 08/02/2012 - 12:58 | 2672808 5880
5880's picture

concept capital?

lol

hacks

Thu, 08/02/2012 - 13:22 | 2672879 iDealMeat
iDealMeat's picture

 Know your Prime Brokers

The directory of prime brokerage firms is currently in alphabetical order, starting in January 2010.

ABN AMRO     
ADM Investor Services     
Alaris Trading     
Altegris Investments     
Banc of America Securities
Barclays Capital    

Beverly Hills Capital     
BMO Capital Markets     
BNP Paribas     
Brewin Dolphin
BTIG     
Carlin Financial     
Caylon Financial     
CIBC World Markets     
Citi AI
CL King     
Concept Capital     
Conifer Securities     
Credit Suisse     
Currenex Inc.
Cuttone & Co.     
Davis Securities LLC     
Deutsche Bank     
Dundee Securities Corp.     
E. Larkin Company
Electronic Brokerage Systems     
Etech Securities
Fidelity Prime Services     
Fimat International Banque SA     
First Clearing LLC
First Southwest Co.     
Fortis Prime Services     
Garwood Securities     
Goldman Sachs Prime Services     
Grace Financial
Greenwich Prime Services     
Interactive Brokers     
Inventure Growth Securities     
Investec Prime Services     ITG Inc.
Jefferies & Co.     
Jesup & Lamont     
JP Morgan     
KBC Clearing     
Legent Clearing LLC
Lek Securities     
Lighthouse Prime Services     
LPL Financial Services     
Marex Financial     Merlin Securities
Merrill Lynch Prime Services     
Mesirow Financial     
MF Global     
Morgan Stanley     
MS Howells & Co.
MVP Financial LLC     
National BankFinancial     
Natixis Bleichroeder     
Neuberger / Berman Prime     
NewEdge Group
Nomura Prime Services     
Nordea Prime Services     
Northpoint Trading Partners     
Northern Trust Prime Services     
Numis Prime Services
Penson Worldwide Inc.     
Pershing Prime Brokerage     
Piper Jaffray Prime Brokerage     
ProTrade Financial     
Prudential Bache
Raymond James & Assoc. Inc.     
RBC Capital Markets     
RBC Correspondant Services     
RBC Deixa Services     
RBS Prime Brokerage
RCM Prime Services     
Ridge Clearing Solutions     
S3 Asset Management     
Sanford C. Bernstein Co.     
Saratoga Prime Services
Scotia Capital     
SEB Prime Services     
Shoreline Trading Group     
Silver Q Partners     
SIP Prime Brokerage
Sloan Securites Prime services     
Southwest Securities     
Sterne Agee Clearing Inc.     
TD Securites Prime Brokerage     
Terra Nova Financial
Trade Desk America     
Trading Screen Inc.     
Trance Consulting Services     
Triad Securities     

UBS Prime Brokerage
Vanthedge Point Group     
Wedbush Morgan Securities     
Ziv Investments           
         

 

Thu, 08/02/2012 - 13:26 | 2672981 The Big Ching-aso
The Big Ching-aso's picture

 

 

Whatever you do don't walk around skyscrapers today.

Thu, 08/02/2012 - 13:54 | 2673115 MsCreant
MsCreant's picture

Oh shit, it's raining brokers!

Thu, 08/02/2012 - 13:58 | 2673135 Dr. Richard Head
Dr. Richard Head's picture

Hallelujah, hallelujah, hallelujah, hallelujah, halleeeeeeeeeeeeeeeeeeeeluuuuuuuuuuuuujahhhhhhhhhhhhhhh!!!

http://www.youtube.com/watch?v=usfiAsWR4qU

Thu, 08/02/2012 - 14:28 | 2673288 redpill
redpill's picture

Anyone checked on the segregated accounts lately?

Thu, 08/02/2012 - 14:50 | 2673377 cougar_w
cougar_w's picture

As per industry best practices, client segregated accounts are held at JPMorgan.

Thu, 08/02/2012 - 22:46 | 2674748 Buck Johnson
Buck Johnson's picture

Don't walk around them tomorrow.

Thu, 08/02/2012 - 13:56 | 2673123 ArrestBobRubin
ArrestBobRubin's picture

Thing looks like a pretty good start for RICO indictments

Thu, 08/02/2012 - 14:03 | 2673160 NotApplicable
NotApplicable's picture

Okay, I was doing some searching and ran across an article in May stating that Knight was buying Penson Futures, and that it was expected to close in the 2nd quarter.

http://www.futuresmag.com/2012/05/29/knight-capital-group-to-buy-penson-...

Does anybody know if this deal closed?

Given that people on this very board were stating the Penson is the next MFG/PFG, well, this doesn't pass the sniff test.

Thu, 08/02/2012 - 14:32 | 2673301 NotApplicable
NotApplicable's picture

Interesting. The deal not only closed, but Penson had $411M in customer funds transferred.

http://in.reuters.com/article/2012/08/02/knightcapital-regulators-idINL2...

Thu, 08/02/2012 - 13:00 | 2672821 emersonreturn
emersonreturn's picture

asp: tis nothing, my trading arm is fine, t'was the other, and without the left side i shan't bother so much with unseemly self servicing.  oh, but am i imagining it, or is it getting darker...?

Thu, 08/02/2012 - 13:05 | 2672853 Turd Ferguson
Turd Ferguson's picture

Hmmmm. What is the likelihood that The Morgue is custodian of Knight's customer funds?

Thu, 08/02/2012 - 13:07 | 2672873 Colombian Gringo
Colombian Gringo's picture

Does a bear shit in the woods?

Thu, 08/02/2012 - 13:57 | 2672965 The Big Ching-aso
The Big Ching-aso's picture

 

 

Yes, they do.   And they also shit in boardrooms.

 

Thu, 08/02/2012 - 13:40 | 2673042 Dr. Richard Head
Dr. Richard Head's picture

Pope shits in the woods and the bear is Catholic.

Thu, 08/02/2012 - 14:06 | 2673182 walküre
walküre's picture

at least ONE representative of the Morgue on this board knows that is true

Thu, 08/02/2012 - 13:08 | 2672857 John Law Lives
John Law Lives's picture

Classic scene with the Black Knight:

http://www.youtube.com/watch?v=zKhEw7nD9C4

Thu, 08/02/2012 - 13:06 | 2672863 LeonardoFibonacci
LeonardoFibonacci's picture

Couldn't have happened to a better bunch of crooks.  With audited statements from the accounting firm of Dewey, Screwem & Howe.

Thu, 08/02/2012 - 13:59 | 2673139 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

c'mon, the Car Talk guys deserve the right quote; Dewey, Cheatem, and Howe

Thu, 08/02/2012 - 13:10 | 2672892 dow2000
dow2000's picture

ICAP cut their line also

Thu, 08/02/2012 - 13:31 | 2673010 Fish Gone Bad
Fish Gone Bad's picture

Doesn't Knight have one of those unicorns that shit out gold coins and rainbows?

Thu, 08/02/2012 - 14:47 | 2673368 fockewulf190
fockewulf190's picture

Comex bought that creature recently. Where did you think they get the gold to settle their contracts with?

Thu, 08/02/2012 - 13:37 | 2673027 walküre
walküre's picture

where's the dude that told us here yesterday he was buying the dip in KCG at $8 ??

LOL

Forget BTFD. It is GYMON ===== Get Your Money Out Now.

Thu, 08/02/2012 - 15:43 | 2673626 MsCreant
MsCreant's picture

GYMON 

Acronym aquired.

Thu, 08/02/2012 - 13:48 | 2673092 banksterhater
banksterhater's picture

CUT THEIR HEAD OFF ! DRIVE THE ASSHOLES TO BK !

Thu, 08/02/2012 - 12:58 | 2672761 bdc63
bdc63's picture

GAWD, I am LOVING every minute of this story ... it's the gift that just keeps on giving ...

 Everyone needs to take note -- you criticize the Nasdeq (... or the FED, or the Squid ...), expect an inexplicable 'black swan' in your future.

Thu, 08/02/2012 - 12:52 | 2672769 Dr. Richard Head
Dr. Richard Head's picture

And all the FED's horses and all the FED's men couldn't put Knight back together again.

Thu, 08/02/2012 - 12:52 | 2672771 LawsofPhysics
LawsofPhysics's picture

Where is my fucking money Lebowski?!?!?!

Thu, 08/02/2012 - 12:56 | 2672803 Lohn Jocke
Lohn Jocke's picture

I don't troll on the sabbas...

Thu, 08/02/2012 - 13:00 | 2672817 eclectic syncretist
Thu, 08/02/2012 - 12:52 | 2672773 Godisanhftbot
Godisanhftbot's picture

 the real nail in the coffin is the time it took for those anii to pull the plug.

 pack of idiots, deserve to dissapear.

 

 that algo should have been pulled within minutes.

 

 no excuse. assholes.

 

Thu, 08/02/2012 - 13:01 | 2672827 bdc63
bdc63's picture

It's August ... they were all in the Hamptons.  The systems were fying on auto-pilot.  Good thing the maintence guy showed up and pulled the plug or this thing coulda gotten out of hand ...

Thu, 08/02/2012 - 13:10 | 2672890 MsCreant
MsCreant's picture

"The systems were fying on auto-pilot."

fying should be "frying," correct? 

Thu, 08/02/2012 - 13:44 | 2673065 DaddyO
DaddyO's picture

+100

This is funny!!

Thu, 08/02/2012 - 14:05 | 2673173 NotApplicable
NotApplicable's picture

That was how I read it.

Thu, 08/02/2012 - 13:18 | 2672924 earleflorida
earleflorida's picture

out of carbonite hands maybe [good/ bad?]... but certainly in the ethereal field of a electronic pulse orgasm has this algo shot it's last load 

Thu, 08/02/2012 - 13:03 | 2672839 earleflorida
earleflorida's picture

What?

Thu, 08/02/2012 - 13:09 | 2672883 Godisanhftbot
Godisanhftbot's picture

 someone from nite logged in and negged my earlier post.

Thu, 08/02/2012 - 13:15 | 2672904 Vagabond
Vagabond's picture

Agreed, If the story is to be believed, the amount of idiocy required is enormous. First, some idiot wrote an ultimate bad-idea algorithm.  2nd, Their test environment was so bad that it managed to get through to production.  3rd, they left the algo running for 45 minutes as it lost hundreds of thousands of dollars a second.

I have a really hard time believing that story.  More likely someone on the inside programmed it purposely to take them down, or some how an outside entity fucked them...

Thu, 08/02/2012 - 13:20 | 2672949 madcows
madcows's picture

That would be awesome.  Some programmer goes rogue and takes out the RoboTrader.  Power to the People.

Thu, 08/02/2012 - 14:07 | 2673186 NotApplicable
NotApplicable's picture

No way. Rogue programmer most likely received an offer he couldn't refuse from Don Dimon.

Thu, 08/02/2012 - 13:26 | 2672979 SokPOTUS
SokPOTUS's picture

Yep.  This sounds like sabotage to me.  Likeliest explanation.

Thu, 08/02/2012 - 13:48 | 2673084 Jay Gould Esq.
Jay Gould Esq.'s picture

Frankly, considering the multi-level negligence/incompetence displayed, the answer is quite likely as simple as Knight claims...call it the Michael Bolton Unified "Office Space" Principle:

"I must've put a decimal point in the wrong place or something. Shit, I always do that. I always mess up some mundane detail !"

Thu, 08/02/2012 - 13:55 | 2673117 walküre
walküre's picture

Obama shouldn't have shut down that Iranian drone.

Now the Iranian intelligence service hacked into NITE.

Thu, 08/02/2012 - 14:30 | 2673297 aerojet
aerojet's picture

I have this image of Scarlett Johansson infiltrating the company as an intern and setting the bad algo running.  That would be so cool!  Why aren't we taking down these HFT idiots like that?  

Tue, 08/07/2012 - 03:34 | 2683964 Precious
Precious's picture

Dude, your fucking affected personality creeps me out.

Thu, 08/02/2012 - 13:43 | 2673060 mvsjcl
mvsjcl's picture

Nothing about this incident passes the smell test.

Thu, 08/02/2012 - 14:10 | 2673202 NotApplicable
NotApplicable's picture

Perhaps it's providing the storyline for an even bigger false-flag attack on Wall St., where GS & JPM clear out the accounts of everyone else under the fog of "war?"

 

Thu, 08/02/2012 - 14:57 | 2673405 dogbreath
dogbreath's picture

Ding Ding Ding  I think we have a winner.

Thu, 08/02/2012 - 12:53 | 2672778 Getting Old Sucks
Getting Old Sucks's picture

If only the FED could die so fast.

Thu, 08/02/2012 - 12:54 | 2672789 malikai
malikai's picture

It just might. Can't say until it happens.

Thu, 08/02/2012 - 12:59 | 2672814 Getting Old Sucks
Getting Old Sucks's picture

Harry Reid who in the 90's called for auditing the FED and now he's gonna block it.  Our elections have boiled down to vote out the one you hate rather than voe in who you like. 

Thu, 08/02/2012 - 13:18 | 2672942 madcows
madcows's picture

I'm sure Dirty Harry is receiving significant financial support from the FED,,, as are all the Dems that voted against the audit.  Ask yourself, why would all but one republican vote for the audit, and only Half of the Dems?  The Fed and Dems are obviously connected at teh hip.

Thu, 08/02/2012 - 13:54 | 2673112 insanelysane
insanelysane's picture

There have been discussions from time to time that there should be 2 boxes for each candidate on a ballot.  So as a quick example this year's ballot would have:

Vote FOR Obama

Vote AGAINST Obama

Vote FOR Romney

Vote AGAINST Romney

 

You can only select 1 and the winner is the one with the most For votes after deducting their Against votes.

Thu, 08/02/2012 - 14:05 | 2673176 WAMO556
WAMO556's picture

Dude, I am plussing you UP on that one. Hella yeah! All for it, voting for the lesser of two evils is still voting for evil. I for one like the idea of having a politician free day, week, month, year, whatever! K would think the I/we would be able to figure things out without them around. Just saying.

Thu, 08/02/2012 - 14:34 | 2673315 NotApplicable
NotApplicable's picture

Look carefully at the choices AND the math again. There is no NOTA on that ballot. Evil still wins.

Thu, 08/02/2012 - 15:22 | 2673509 takinthehighway
takinthehighway's picture

You only want "NOTA" on the ballots so that, when NOTA gets a majority of the vote, you can point to this post and claim that NOTA is shorthand for "NotApplicable", and therefore you should be declared the winner.

You are obviously brilliant and have my full support.

 

Thu, 08/02/2012 - 12:54 | 2672790 RockyRacoon
RockyRacoon's picture

The Fed's errors will never be known since everything is veiled in secrecy.

Go, Ron Paul!

Thu, 08/02/2012 - 13:30 | 2673003 seek
seek's picture

I think they will eventually be known, but it's going to come about the same way as the the secrets of the east German stasi were -- savvy looters and protestors going through the rubble of a collapsed Fed. Of course this won't happen until after the current federal government is replaced and anyone within 50 miles of DC that has a net worth over 20M has relocated to Paraguay.

Thu, 08/02/2012 - 14:20 | 2673250 NotApplicable
NotApplicable's picture

It will never be known, as there won't be enough legitimate evidence to connect the dots.

In my own little part of the world, for instance, I just learned about a discrepancy that has grown to around $300k in the last five years within a bank acct that is used by accts payable. Yet, the external auditors have signed off on it every year. Internally? They just ignore it, while blaming others, occassionaly making up an entry to balance it all out.

So, are we having fun yet?

Thu, 08/02/2012 - 12:53 | 2672779 Godisanhftbot
Godisanhftbot's picture

  years of robbing retail, G*D has punished them in the end. amen.

Thu, 08/02/2012 - 12:56 | 2672800 GMan_
GMan_'s picture

I agree. As a day trader, I cannot count how many times NITE has f*cked me over on so many trades.

Thu, 08/02/2012 - 13:42 | 2673056 Osmium
Osmium's picture

It was similar to getting hosed on trades by MADF.

Thu, 08/02/2012 - 14:22 | 2673260 NotApplicable
NotApplicable's picture

The best execution, guaranteed!

You just didn't expect to be the one being executed though, I'm guessing.

Thu, 08/02/2012 - 12:54 | 2672782 buzzsaw99
buzzsaw99's picture

their clients doubtless got corzined

Thu, 08/02/2012 - 13:02 | 2672836 Quinvarius
Quinvarius's picture

At least the Fed correctly diagnosed the system as unstressed and stable.  I am glad they chose hyper inflation through debt default rather than mega inflation through printing.  Lets get this over with.

Thu, 08/02/2012 - 13:12 | 2672907 ParkAveFlasher
ParkAveFlasher's picture

...and, it's only a "default" if they say it is...

Thu, 08/02/2012 - 13:05 | 2672854 Unprepared
Unprepared's picture

The August 1st Knight Bid-Offer GigSaw Massacre.

Thu, 08/02/2012 - 13:39 | 2673039 buzzsaw99
buzzsaw99's picture

hello amanda, i want to play a game... [/gigsaw killer]

Thu, 08/02/2012 - 12:54 | 2672784 FranSix
FranSix's picture

Knight Capital has lots of long exposure in Gold futures which are bound to be hypothecated?  Yzm?

Thu, 08/02/2012 - 13:50 | 2673099 JLee2027
JLee2027's picture

Knight is a market maker and is supposed to hold no positions.

Thu, 08/02/2012 - 14:24 | 2673269 NotApplicable
NotApplicable's picture

Stop it! You're killing me!

Thu, 08/02/2012 - 13:00 | 2672822 Quinvarius
Quinvarius's picture

Jamie Dimon had the Fed to bail him out by buying some crap off his balance sheet at inflated prices to counter the massively stupid trading losses a month ago.  Knight is all alone.

Thu, 08/02/2012 - 13:02 | 2672825 Joebloinvestor
Joebloinvestor's picture

I was very pleased to see robo trading software take down a market maker.

That it was their own creation makes it even better.

However, I doubt anyone else using software for trading will take precautions.

I hope not, this is fun.

Thu, 08/02/2012 - 13:01 | 2672826 ArrestBobRubin
ArrestBobRubin's picture

Critical Lessons From The Facebook Scam: A Blast From The Past

After you read this article, I highly recommend that you read the 5-part series on Facebook (Part 1   Part 2   Part 3   Part 4   Part 5) because it contains additional critically important points that all users of Facebook should be aware of. As well, it contains some very valuable lessons about the investment process that I can guarantee you will not see, hear or read about elsewhere.

Thu, 08/02/2012 - 13:51 | 2673105 Solon the Destroyer
Solon the Destroyer's picture

I thought those links would prove to be insightful and interesting but instead they're nothing but a horrific moral diatribe.

Thu, 08/02/2012 - 13:02 | 2672833 youngman
youngman's picture

They had some HFT traders on CNBC....man were they full of shit trying to explain how their HFT´s "help" the market...right...it helps them steal money...and it is just that ...stealing...they should put a $1 charge on all orders....all orders whether filled or cancelled....it will stop it right away...

Thu, 08/02/2012 - 14:15 | 2673224 Tippoo Sultan
Tippoo Sultan's picture

One dollar ? These locusts churn so much, one mil would suffice.

Thu, 08/02/2012 - 13:02 | 2672834 stant
stant's picture

good bye berneke put, the black swan is here, black as knight biatchez

Thu, 08/02/2012 - 13:02 | 2672837 Never One Roach
Never One Roach's picture

"The company is actively pursuing its strategic and financing alternatives to strengthen its capital base,"

Translation - We are currently trying to figure out how to pass this loss on to someone else.

Thu, 08/02/2012 - 13:24 | 2672972 bdc63
bdc63's picture

More like "we are currently trying to figue out how to steal all the money that is left before we declare bankruptcy"

Thu, 08/02/2012 - 13:02 | 2672838 SheepDog-One
SheepDog-One's picture

'Millipennies on the dollar' assets....LOL

Thu, 08/02/2012 - 13:04 | 2672847 lizzy36
lizzy36's picture

Now Fido is staying clear of KCG.

Buyer by close or they don't open tomorrow morning.

Thu, 08/02/2012 - 13:49 | 2673096 cougar_w
cougar_w's picture

Fact. The chopper is idling on the rooftop. If they open at all, it will be so the CEO can thank the employees for their hard work and dedication.

Thu, 08/02/2012 - 13:04 | 2672848 Byte Me
Byte Me's picture

Thankyou and Good Knight

Thu, 08/02/2012 - 13:06 | 2672859 Vegamma
Vegamma's picture

Institutional Investor just named Sadoff (Global Head of Ops/Services/Tech for Knight) one of their 50 "Difference Makers" in financial technology leadership. See cover story of July/Aug magazine. II should move him up from #47 to #1 as I don't think anyone could possibly make a bigger difference to their firm than Sadoff.

Thu, 08/02/2012 - 13:41 | 2673054 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Sure that wasn't Madoff?

Thu, 08/02/2012 - 13:07 | 2672865 Jlmadyson
Jlmadyson's picture

Someone is sitting in an office somewhere and they are shitting bricks.

And these bricks ain't gold.

Thu, 08/02/2012 - 13:30 | 2672997 cougar_w
cougar_w's picture

The ivory towers of finance are full of MBA idiots who can only make money when there is absolutely no way to lose it. They have no idea what is happening to their world. They have no means to cope. They'll be drinking themselves blind by 10AM and sleeping in the lobby at 9PM, flat broke.

The whole industry is headed this way. As a class, they have no clue. The only clue you will ever see is on ZH, when one of them comes clean and admits the whole thing is a house of mirrors.

Thu, 08/02/2012 - 14:37 | 2673327 NotApplicable
NotApplicable's picture

Like Grandpa used to say, "Stupid should hurt!"

Thu, 08/02/2012 - 13:10 | 2672897 CharliePrince
CharliePrince's picture

dont forget to turn out the lights on the way out----

Thu, 08/02/2012 - 13:22 | 2672961 Doublescythe
Doublescythe's picture

def destroy_prime_broker(liquidate):

    capital = 1,000,000,000

    while capital > 1:

        buy on ask

        sell on bid

    BREAK

Thu, 08/02/2012 - 14:43 | 2673352 FrozenOut
FrozenOut's picture

You think they use Python? Not Haskell or Erlang...?

Thu, 08/02/2012 - 18:17 | 2674184 malikai
malikai's picture

Java in a big fat J2EE whale with a nice fat and slow oracle.

Thu, 08/02/2012 - 13:25 | 2672977 cougar_w
cougar_w's picture

This has a "midnight at Lehman" feel to it. If there is now a panic looming and everyone starts mistrusting each other, their ball of string is going to come unwound.

Watch for soothing words from the SEC to the tune of: "Markets are stable and the industry is working to increase trust between parties. The SEC will continue to make sure the markets remain efficient."

That's when their shit will come unwired. They say that, and you can give them 24 hours to live.

Thu, 08/02/2012 - 14:19 | 2673246 Tippoo Sultan
Tippoo Sultan's picture

Agreed.

Sunday evening is the likely time frame for an "announcement," a la Lehman. Come Monday morn, the ticker "KCG" ( and its underlying entity ) will be no more.

Thu, 08/02/2012 - 13:28 | 2672986 Whoa Dammit
Whoa Dammit's picture

The next question is who do they owe...

"Cash and short term investments rose 55 percent to $7.5 billion in the second quarter of 2012, and the company’s debt amounted to 46.4 times total assets."

http://www.bloomberg.com/news/2012-08-02/knight-says-losses-from-trading-breakdown-are-440-million.html

Thu, 08/02/2012 - 13:49 | 2673095 seek
seek's picture

The bloomberg numbers don't seem to check out: http://www.knight.com/investorRelations/pressReleases2.asp?compid=105070...

That said, if Knight's balance sheet is honest (ha!) that means they've burned at least 1/3 of their equity in a single bad day, and close to two quarter's worth of expenses. Ouch.

My guess is this fuckup is going to expose that their books are bogus, but I don't think the numbers are big enough to trigger a Lehman. Maybe if it fucks someone upstream.

 

Thu, 08/02/2012 - 13:54 | 2673113 cougar_w
cougar_w's picture

Lehman 2.0 in the making. If Knight evaporates client money into JPMorgan, or screws a bunch of counter-parties, or if their books are revealed to be utter fictions, then people are gonna start to connect the dots.

Thu, 08/02/2012 - 14:15 | 2673227 Whoa Dammit
Whoa Dammit's picture

Thx for the link Seek. Perhaps Bloomberg used a bad algo in its calculations. :-).

Thu, 08/02/2012 - 13:34 | 2673018 Seasmoke
Seasmoke's picture

the Reaper always knocks on the door on Fridays......Going to be a long weekend upcoming

Thu, 08/02/2012 - 13:41 | 2673048 geminiRX
geminiRX's picture

Speaking of scary, that situation in Uganda is not getting prettier... I wonder what the population of that prison is?

http://www.cnn.com/2012/08/02/health/uganda-ebola-virus/

Thu, 08/02/2012 - 13:44 | 2673068 fasTTcar
fasTTcar's picture

Maybe the robo's are finally becoming self aware and taking down the masters.

Thu, 08/02/2012 - 13:44 | 2673070 patb
patb's picture

BERNANKE AND GEITHNER WILL BAIL THEM OUT

Thu, 08/02/2012 - 13:47 | 2673075 lemonobrien
lemonobrien's picture

i think this was all caused by an Indian programmer; serves them right for hiring an H1-B

Thu, 08/02/2012 - 14:15 | 2673228 Disenchanted
Disenchanted's picture

 

 

The original Knight event did go down during the India power outage didn't it?

Maybe that Indian programmer never touched these shores.

Hmmmm......

Thu, 08/02/2012 - 13:49 | 2673097 Atlantis Consigliore
Thu, 08/02/2012 - 13:57 | 2673128 walküre
walküre's picture

What about MGIC?

Magic Investment Corp?

(Mortgage Guarantee Insurance Corp)

Robotarder, should I BTFD?

Thu, 08/02/2012 - 14:12 | 2673208 warezdog
warezdog's picture

That list is a bit too long, time to pare it down a bit.

Thu, 08/02/2012 - 14:53 | 2673391 cougar_w
cougar_w's picture

I think the upshot is that everyone on that list is very busy right now trying to get themselves off it.

Thu, 08/02/2012 - 14:17 | 2673236 zrussell
zrussell's picture

Maybe Knight Capital's co. losses are already covered by JPM and this is just a decoy to draw attention away from a more sinister project test involving... total casino control.

Thu, 08/02/2012 - 14:47 | 2673367 CcalSD
CcalSD's picture

G $$$

Thu, 08/02/2012 - 16:17 | 2673793 OneTinSoldier66
OneTinSoldier66's picture

Bullish!

 

Go long JPM, GS, MS, C, BAC, and buy U.S. Treasuries!

 

All you need is the right algo!

 

Last but not least... King Dollar!

 

/sarc

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