Knight Capital lost more than $400 million in the bag thanks to computer error
The firm Knight Capital Group, engaged in trading stocks, are a pretty big headache these days. And all thanks to a computer error that was wasting a lot of money, even more than what they had earned during the year.
Last Wednesday, the software that manages the purchase and sale of shares in Knight Capital had his moment of rage and bought shares of everything in its path, including RadioShack, American Airlines, Ford, and others. After 45 minutes, the company realized what had happened and began to dispose of all shares purchased by mistake, but at that time it was catastrophic balance: $440 million in losses.
According to the NY Times, the disaster is so great that the stability of the company was seriously affected, to the point that their managers are already looking for alternatives to try to recover the situation. Fortunately, none of the clients of Knight Capital Group was harmed by the situation, but the issue may be totally opposite to the firm and some voices are beginning to wonder if this is the beginning of the end of the company.
Of course, stocks tumbled to 63% after the accident. And the event challenges the perhaps excessive confidence that many companies have in this type of software solutions for such sensitive Actions for your business. Moreover, the CEO of Knight Capital is even more shameful because it was one of the most critical of the computer problem occurred in the bag opening to Facebook .Actions, Bag, computer error, Knight Capital Group, losses, stock market