Wednesday, August 15, 2012

Knight Put Fate in Familiar Hands


As Knight Capital Group Inc. faced its darkest hours earlier this month, J.P. Morgan Chase & Co. found itself in a familiar position: helping decide the fate of a Wall Street firm in crisis, according to a WSJ article

At about 9 p.m. on Aug. 1, Knight Chief Executive Thomas Joyce called Carlos Hernandez to seek emergency funding from J.P. Morgan, the lead bank on a primary credit line, to plug losses from errant trades caused by a software upgrade, according to people familiar with the conversation. Mr. Hernandez, J.P. Morgan's global head of equities, had just returned from business meetings in Mexico….

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