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Knight Capital Former CEO Pasternak Says Company Can Rebound

Features Reuters

Knight Capital Group's co-founder and former CEO Kenneth Pasternak said on Thursday the company can rebound after a trading glitch that wiped out $440 million in capital.

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Knight (KCG) has said in a statement it is looking for financing after a problem with the company's trading software caused unusually heavy volume in dozens of stocks.

"Whenever you have a company that lost roughly half of its tangible book value in five minutes, everything is on the table," Pasternak, who co-founded Knight in 1995 and served as its chief executive until he retired in 2002, told Reuters in an interview. "All (CEO Tom Joyce) has to do is pick up the phone."

Although equities trading is not a growth business and client confidence may be waning, Knight remains profitable and can rebound from the technology issues, according to Pasternak.

(Reporting by Jed Horowitz; Editing by James Dalgleish)