Knight Capital (NYSE: KCG) has released its quarterly earnings, and in this video, Motley Fool financial analyst Matt Koppenheffer discusses the company's painful drop in tangible book value over the past couple of years. He highlights the one major error that the company made that cost it dearly and brought it very near bankruptcy, and he sees it as a healthy positive for society that it was the private market, not a government bailout, that brought the company back from the brink.
Knight's losses are good for us all, in the broad perspective.
About the Author
Matt is the head of the Coverage Team for The Motely Fool's premium products. Previously, he's been . Matt is a heavy user of AI tools and is working on harnessing them to help Fool members. Previously, Matt was GM of Motley Fool Ascent, led The Motley Fool Deutschland, has been an investor on various Fool services, and co-hosted the podcast "Where the Money Is". He also co-authored the book The Astonishing Collapse of MF Global. Matt started his career in San Francisco as a technology-focused investment banker and also worked at a $15 billion private equity company. When he's thinking about how to make Fools smarter, happier, and richer, you can usually find Matt running trails or making a mess in the kitchen. He's a graduate of the University of Pennsylvania, but is a lifelong fan of Penn State football.