Knight Loss Is $270 Million After Taxes, Joyce Tells Clients
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Knight Capital Group Inc. Chief Executive Officer Thomas Joyce estimated last week’s trading loss will be $270 million after taxes and told clients the firm is “in good standing” with clearinghouses.
The post-tax loss compares with a previously disclosed 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. Joyce told clients that the company is in talks with outside advisers as it works to prevent another error.