CNBC Video: Curt Bradbury on Stephens' Investment in Knight Capital - Innovate Arkansas
CNBC Video: Curt Bradbury on Stephens' Investment in Knight Capital
By Lance Turner, 8/6/2012 12:59:34 PMStephens Inc. COO Curt Bradbury said Monday that Tom Joyce should remain CEO of Knight Capital Group Inc. of Jersey City, N.J., whose software error last week disrupted trades on the New York Stock Exchange.
Bradbury, in a live appearance on CNBC, characterized Wednesday's computer error as "basically a lightning strike, a unique event that was easily fixable." He expressed confidence in the company and its leadership, including Joyce.
"I certainly think he's done a great job over the years building Knight into the trading powerhouse that it was and is," Bradbury said. "And I think he should remain."
Stephens of Little Rock is among several investors throwing in $400 million to rescue Knight. The investor group is led by Jefferies Group, as well as Blackstone, Getco, Stephens, Stifel Nicolaus and TD Ameritrade.
In exchange, the group will receive stock that can be converted to a 73 percent stake in Knight, which means Knight is essentially handing over control to the investor group. Knight will also add three directors to its board.
Knight's stock has mostly been in free-fall since a massive computer error in its systems last Wednesday sent huge numbers of erroneous orders flooding into the market, causing dozens of stocks to swing wildly in heavy volume.
Knight said the foul-up would cost the firm $440 million as it paid for stock positions it mistakenly bought.
(The Associated Press contributed to this story.)
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