The 12 Most Spectacular Financial Services Failures of All Time
Shortly before markets opened on Aug. 1, 2012, Knight was regarded as a powerhouse in electronic market making. A few minutes later, the firm’s new trading algo went rogue, giving rise to a crazed, 45-minute buying spree that at one point led Knight to hold an astounding $7 billion in stocks. The fiasco eventually left the firm with a $440 million loss. Three days later, Knight negotiated a loan and a lifeline thanks to a group of six firms, including Jefferies Group, TD Ameritrade Holding and Stifel Financial.
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