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Knight Capital Group's long-term viability questioned
Aug 7th 2012, 02:07

NEW YORK — Knight Capital Group's lifeline may have headed off the Wall Street brokerage's collapse, but it did not allay questions over the firm's future. The Jersey City, N.J., brokerage, whose business processes 10% of all U.S. stock transactions, received $400 million of new capital from a consortium of private equity funds and other major financial players. It will keep Knight in business after suffering massive losses last week when a software glitch sent out a stream of unintended trades. Analysts say the deal sacrifices the company's stock price in favor of survival. They also question whether Knight still remains viable in the long-term, and if the brokerage's new owners would...

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