Knight Capital Group, which lost $440 million in a matter of hours during a software malfunction last week, secured financing to keep the company in business, according to news reports. General Atlantic, Blackstone Group, Stifel Nicolaus & Co., Jefferies Group, Stephens Inc. and TD Ameritrade will supply the cash in return for convertible securities representing as much as a 75 percent stake in the company.
Knight Capital CEO Tom Joyce asked the Securities and Exchange Commission to cancel the accidental trades executed during the computer glitch, but chairman Mary Schapiro rejected the request, according to the Wall Street Journal.
UBS fired about 25 traders and managers in connection with inquiries into the manipulation of Libor, Bloomberg reports, citing Der Sonntag. As rate-rigging investigations progress, it’s every bank for itself, according to The New York Times.
U.S. banks are taking steps to make sure that they don’t get stuck holding a bag of drachmas in the event Greece exits the euro.
Mitt Romney didn’t visit Italy during his recent Italian tour. Bloomberg offers a possible explanation: Bain Capital, with Mr. Romney as chief executive officer, made about $1 billion on a deal with the Italian government that remains controversial to this day.
As many as 100 Swiss banks may fold, one executive told Bloomberg, as U.S. and European authorities turn up the heat on tax evaders.
The foreman of the jury that acquitted former Citigroup executive Brian Stoker of charges arising from the structuring and marketing of collateralized debt obligations during the run up to the financial crisis talked to The New York Times’ Peter Lattman about the trial. “I wanted to know why the bank’s C.E.O. wasn’t on trial,” he said. “Citigroup’s behavior was appalling.”
Job vacancies in London’s financial sector fell by 39 percent from July 2011.
Small banks say a one-size-fits-all approach to rules governing capital requirements is…bullshit?