REPORT: Knight Capital Owes Goldman Sachs $440 Million By Monday Night


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CNBC’s Kate Kelly is reporting Goldman Sachs served as the counterparty that helped unwind Knight Capital Group’s erroneously executed trades that caused its stock price to collapse Wednesday.It was this deal that cost Knight Capital $440 million, Kelly said, and regulatory statutes dictate that the trade must be settled in three days — or Monday evening.

Kelly said the company may have had more confidence at the time that they would be able to come up with the cash pay off the charge.

But in the past 48 hours, major institutions including Fidelity Investment and TD Ameritrade have avoided routing trades through Knight, whose principal business is market making.

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