Under the plan being discussed, TD Ameritrade and Getco would be the primary investors in a consortium of more than six entities that would provide a total of $400 million in capital to Knight, The Wall Street Journal reported.
A Knight representative declined to comment, the Journal said.
Knight, the Jersey City, N.J-based market maker, last Wednesday suffered a software glitch that caused it to send out erroneous trading orders. On Thursday, the company announced it had suffered a $440 million pretax loss as a result.Under the consortium plan, the investors would purchase debt that would convert into stock at $2.50 a share, the Journal report said. Jefferies (JEF) also is involved in setting up the arrangement, the report said. Knight in Talks on Potential Rescue: Report
Chesapeake Energy (CHK - Get Report) is expected by analysts Monday to post fiscal third-quarter earnings of 8 cents a share on revenue of $2.5 billion.
Tyson TSN (TSN - Get Report), the meat and chicken processor, is expected Monday to post a profit of 55 cents a share on revenue of $8.75 billion.
Earnings are also expected Monday from Dillard's (DDS), Cache (CACH) and Cognizant Technology (CTSH).
The U.S. attorney's office in Los Angeles is investigating whether Las Vegas Sands (LVS - Get Report) violated money-laundering laws by not reporting money transfers to its casinos from two big gamblers, according to the Journal. Las Vegas Sands Target of Federal Probe: Report
Teva Pharmaceutical (TEVA), the Israeli generic drugmaker, is being investigated by the Securities and Exchange Commission for possible violations of a U.S. antibribery law.
-- Written by Joseph Woelfel
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