Knight Capital Group Chief Executive Officer Thomas Joyce said in a letter to clients yesterday the company is “in good standing” with clearing firms and its broker-dealer units have sufficient capital. Joyce also said the post-tax loss stemming from Knight’s trading error was about $270 million, compared with a previously reported pretax loss of $440 million. The letter comes a week after Knight, one of the biggest market-making firms in the U.S., was driven to the brink of bankruptcy after a technology malfunction spewed orders into the market by mistake. [Bloomberg, earlier]

*-ish.

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Comments (34)

  1. Posted by Editor in Chief | August 8, 2012 at 2:02 PM

    Bess, do you mean "half its annual profit"?

  2. Posted by guest | August 8, 2012 at 2:07 PM

    Nope. They mad ~100 million last year. When they thought they lost 440 mill, that was roughly four times their annual profit (as helpfully noted by bberg last week). Now, as it turns out, it was only 200ish million, ie just two times their annual profit.

  3. Posted by tHe OthEr JD | August 8, 2012 at 2:18 PM

    Phew, that was close. Only 270mil. K.Adoboli or Iksil shoulda been on the job and done it properly. There are no redo's in life.

  4. Posted by Guest | August 8, 2012 at 2:18 PM

    So, now we wait to see who is the first congressperson to bitch about the taxpayer "subsidizing" Knight's losses, showing complete ignorance of how the tax code works. I'll put $100 on Maxine Waters.

  5. Posted by tHe OthEr JD | August 8, 2012 at 2:20 PM

    by the way, 270 != 440/2 but I can see how someone could make that mistake,

    – Srinivasa Ramanujan

  6. Posted by guest | August 8, 2012 at 2:22 PM

    It looks like Sarah Jessica Parker went brunette

  7. Posted by Not a CFA | August 8, 2012 at 2:23 PM

    A trading firm's 2011 pre-tax profit was 187MM, post tax 115M. If the trading firm has a glitch in their computer and dumps 5 days worth of trades in 15 mins and suffers a pre-tax loss of 440MM, and a post tax loss was 270MM, calculate the ratio of pretax loss to pretax profit.

  8. Posted by Guest | August 8, 2012 at 2:31 PM

    The Knight is dark and full of terror.

  9. Posted by tHe OthEr JD | August 8, 2012 at 2:31 PM

    *ish

  10. Posted by Oh My | August 8, 2012 at 2:44 PM

    But…but…he's my only means of conveyance!

  11. Posted by Infinite Joust | August 8, 2012 at 2:47 PM

    I feel like if Matt didn't like documenting his Renaissance Fair trips so much we would have to look at the same stock photo of a knight every day…

  12. Posted by Still a Horse | August 8, 2012 at 2:51 PM

    How dare you make light of her struggle like that. It's obvious Sarah Jessica Parker is uncomfortable with that heavily armored man sitting on her back.

  13. Posted by reospeedwagon916 | August 8, 2012 at 2:53 PM

    incredible recovery!

    -AIG Quant

  14. Posted by Guest | August 8, 2012 at 3:23 PM

    buying interest in a futures trading company with $400million in assetes and stealing it in less than 1hour, the NKI!

  15. Posted by Noel Sisters | August 8, 2012 at 3:33 PM

    It's not really as uncomfortable as it looks.

  16. Posted by Medieval Matty L. | August 8, 2012 at 3:34 PM

    Actually, I kind of also wrote and like, I guess you could say, planted the algo that caused some trades that made some people not all that happy to be Knight shareholders! But thanks to those trades, now you all get to see my pictures from the field-trip,* and look, Jefferies got to structure their very own deal, a win-win for everyone!

    *And everyone said the Beemers field trip would be so much more fun than Medieval Times, HAHAHAHAHA, who's laughing now!!!!

  17. Posted by lolwut | August 8, 2012 at 3:38 PM

    My money is the guy from like Idaho who was spouting off at Dimon's hearing about how his farmers lost money in the MF Global debocle

  18. Posted by .Bo | August 8, 2012 at 3:52 PM

    It's 4 PM. Matt must be preparing something epic.

  19. Posted by guest | August 8, 2012 at 3:57 PM

    Has it been busy at the empathy table today?

  20. Posted by 1,000 Asterisks | August 8, 2012 at 4:04 PM

    You just wait . . .

  21. Posted by Another Bro-Dad | August 8, 2012 at 4:08 PM

    Unrelated, but I can't be the only person who wants to know how the Little Bros B-Day party went.

  22. Posted by the neighbor | August 8, 2012 at 4:20 PM

    Matthew was playing hide and seek with his kids and got an awesome idea. He would put his head in the trash can ostrich style and there was just no way his kids (or his nagging wife for that matter) would be able to find him. After accidentally glancing himself in the mirror he realized that he looks badass and hasn't remove it since.

  23. Posted by guest | August 8, 2012 at 4:32 PM

    What's the over/under on how many more times the eternal slam piece sent him to Party City ?

  24. Posted by Domestic HR Dept. | August 8, 2012 at 5:05 PM

    Hopefully that got turned into an end of the summer intern project.

  25. Posted by Quannie | August 8, 2012 at 11:00 PM

    You're not a CFA but it sounds like you should be writing their exam questions.

  26. Posted by History Major | August 9, 2012 at 3:59 PM

    Whic Noel girl is that?

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