Knight Capital Could Face Bankruptcy

A software glitch that resulted in a $440M trading loss for brokerage firm Knight Capital could force the New Jersey-based firm into bankruptcy. "They have about 48 hours to shore up confidence," said James Koutoulas, head of an advocacy group for former customers of failed brokerages MF Global and Peregrine Financial. The firm announced that it is "actively pursuing its strategic and financing alternatives," an indication that the firm could be sold or declare bankruptcy because of its lost capital, which amounts to roughly four times its annual net earnings.