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Thu August 2, 2012
Knight Capital Says It Lost $440 Million Because Of Computer Glitch
Remember the computer glitch that caused market turmoil Wednesday morning?
As we told you, it was caused by a computer glitch that accidentally forced Knight Capital Group to buy a great number of stocks.
Today, Knight Capital said it had sold all those stocks and that the mistake had cost it $440 million. By The New York Times' count, that amounts to $10 million a minute and is more than than the company's second-quarter revenue of $289 million.
In a statement, the company said that despite the fact that their capital base had been "severely impacted," it was still in compliance with capital requirements.
The Wall Street Journal reports that price of shares of the company took a beating yesterday, dropping 33 percent. At one point, today, they were down 52 percent to "$3.35, its lowest split-adjusted price since October 1998."