Knight Capital was on the verge of going under on Thursday, after a computer trading glitch the previous day led to a whopping $440 million in losses for the brokerage firm. Knight was left scrambling for funds as its biggest clients, including TD Ameritrade and Fidelity Investments, said they were taking their business elsewhere. The problems started for Knight when an errant computer program executed a flurry of trades that sent some of the biggest stocks on the New York Stock Exchange on a wild ride, and forced the exchange to halt trading. It's not the first time that computers have wreaked havoc on the markets, raising concerns that they pose a systemic risk to the financial system.
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
- How U.S. special forces are preparing for the worst-case scenario in North Korea
- I hate Ayn Rand — but here's why my fellow conservatives love her
- Here's the schedule very successful people follow every day
- Hey, Paul Ryan's new poverty plan isn't completely terrible!
- The 11 worst fast food restaurants in America
- Deficit scolds are the most crazed ideologues in America
- The weird obsession that's ruining the GOP
- The disturbing lessons of Arizona's un-American execution
- The secret to Gabrielle Hamilton's amazing grilled cheese sandwiches
- 7 language habits that reveal your age
Subscribe to the Week