Risk Management

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Melanie Rodier
Melanie Rodier
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The 12 Most Spectacular Financial Services Failures of All Time

As a result of its spectacular tech fail on Aug. 1, Knight Capital became the latest financial services firm to have pushed to the brink of collapse before being either rescued at the eleventh hour or permanently wiped out.
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Knight Capital

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.

[Was Knight’s Fiasco Really a Wall Street Success Story?]

 

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio

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