From FOX Business’ Charlie Gasparino re: Knight Capital (KCG)
– FOX Business Network (FBN) Senior Correspondent Charlie Gasparino reports that traders at Knight Capital are making calls for jobs elsewhere as the stock hits new lows and the firm seeks a potential buyer
– One senior Knight Capital executive told FOX Business Network (FBN) Senior Correspondent Charlie Gasparino that, “It’s a warzone here, bullets are flying; I’m just trying to survive”
– FB has learned at least 10 counterparties won’t deal with Knight at least for now
FOX Business Network has learned that the turmoil has forced Knight Capital to reach out to J.P. Morgan (JPM) for emergency financing aimed at shoring up the company’s depleted capital base. The trading malfunction involved Knight Capital buying $5 billion of stock, and the next 48 hours are critical for the company’s survival as CEO Thomas Joyce tries to maintain its capital base and examines all alternatives, including a possible sale. Regulators are monitoring the situation closely.