tom joyce is an excellent manager. he has my full support. >> i guess you could say it's a flock of ugly ducklings. if you take the facebook ipo, all of these things that have happened over the last couple of years, since really the flash crash and there are probably events prior to that that we didn't make that much of a deal about, what does it say about the way wall street is run right now that you can have a firm nearly go belly up because of a technology glitch? >> look, i think that technology has been a tremendous boom to investors and to wall street. but on the other hand, i think that the rush for speed sounds like a double there, but the fact that everything has to be done so fast, we need to step back and understand whether or not technology, which needs to bat 1,000. when it bats .999, that impacts investor confidence. i believe that we need to take a step back as a industry and not have the rush for speed and get back to a little bit more stability. >> you have investment advisers in your firm, so you woul

tom joyce, the ceo saying his goal is to stay in business. most believes rich reppetto, who was on the program at the top of the hour saying they do need to do some kind of a deal. apparently they are in talks in the early stakes, nothing guaranteed. we'll keep you up to date on what's happening with kcg shares, knight capital. the overall market is at the lows of the day, the s&p 500 off 1.33%. the dow industrials coming off of low, but still looking at a 165-point loss. nasdaq down as well after ecb president talked a lot last week. didn't deliver whats markets were hoping for today. and thus you have energy is down. there's the xle, materials are weak, financial stocks are weak. the euro which was initially higher turned negative and it's been sharply lower throughout much of the session today. there's a look at the xlf. as i was referenced, the euro lows at the 121.5. the loss of .66%. let's hit facebook now and the hits do keep coming for that company as the stock plunges to a fresh record low. and some of the early believers in that sto

that tom joyce would stay for, who knows how long, but a period of time. here is what they are also saying, if these civil charges .2 senior management not taking the right steps to basically deal -- what they are saying is that could be the sort of spark that forces tom joyce to leave. that is what we have to worry about. we have to look at this investigation and where it goes. investigators are expecting something. let's face it, wiped out $700 million in shareholder value. this is something that that occurred here. it is not that they just made a mistake. a firm like knight can't implode and not have systemic impact where the rest of the firms fall apart. investors lost a lot of money here. that is when the sec acts. lori: the firm survived. what does that mean in the day today action. charlie: look at that stock price. it is up marginally today. it is going back down again as we are talking. with the market saying right now, when they did the deal, when they got the money from those investors, the stock traded at about three dollars a share. they made

tom joyce is one of our board members. never called me or asked for any help. >> do you think mayor shapiro made the right decision? that's why knight found itself in the position it did. >> i don't know. i don't have all the facts. tom does haven't all the facts. i don't know whether mary made the right decision or not. she has a very hard job. she does an excellent job. and in a very tough circumstance. >> andrew, real quick, what do you want to see here? i mean, you know, it -- i understand the whole politics of it and screening and that -- that place of the masses. but fundamentally, we all need the finance industry. to finance things that mat other main street. what do you want to see? >> well, i think at a minimum until some corporate executives start getting indicted and serving criminal -- >> indicted? who do you want to see indicted? indicted. >> absolutely. if we don't see criminal -- >> who do you want to see indicted? >> executives of lehman brothers. take a look at the bankruptcy report filed against them. tha

i know tom joyce for decades. he's a stand-up guy. and as he said, he's open for business and staying at it. so i'll leave it at that. >> obviously a lot of people out there saying this screams for more regulation. there needs to be somebody who's watching over the computerized trading, et cetera, et cetera. what's your point of view in terms of whether or not this would have been regulated out as a risk? >> i don't know if it could have been regulated out as a risk. there is a brand-new rule that the s.e.c. put in place relatively recently called the market access rule that's supposed to provide for more risk controls for these sorts of orders in the market. what's interesting is each of the episodes we talked about, three of the four we talked about excludeing the flash crash. you look at the bats ipo, facebook and knight yesterday, were related to new code being put into place, related to the rlp program here, facebook ipo, nasdaq rewrote its software for the ipo cross and bats was attempted to become a listing market for the first

tom joyce thank you very much. >> guys, back to you. >>> bob pisani, our thanks to tom joyce as well. coming up more on founder of best buy offering to buy the troubled tech retailer. let's take a look at this morning's early morning movers as well. this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade. it's

the focusing on the lack of management, they say that could cause tom joyce to leave the firm. liz: it was brand new equipment. >> new york stock exchange found out and said there was a problem and they called five times and got moved to different desks. they had no clue. they pinpointed but the damage was done. the trades are so voluminous the firm was toast without the help. liz: thank you very much. charlie gasparino. 10 companies with the market cap that tennesseans stock gains but we have less ceo of one business. warren buffett pulling out of the debt to pulling out five years earlier. what is he dumping? next. if you have copd like i do, you know how hard it can be to breathe and what that feels like. copd iludes chronic bronchitis and emphysema. spiva helps corol my copd symptoms by keeping my airways open a full 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintenance treatment that does both. and it's steroid-free spiriva does not replace fast-acting inhalers for sudden symptoms. tell yr doctor if you have kidy problems, glauc

. >> tom joyce was fantastic, handled this very well. he made a good point, they said you were very argumentative about nasdaq and bob greifeld and he said we made a mistake, we blew it, we pay the consequences, the shareholders too, and that's the bottom line. taxpayers should not be saying boo about this because it's a knight story, they have the consequences. >> we're just not nearing the last of the issue as to if there should have been more government involvement and only from the standpoint if more of those trades should have been cancelled. what is the definition of erroneous when it comes to a trade. we talk about it all the time, erroneous trades happen all the time and it was a big and serious issue and nearly caused a firm to go out of business. >> that's my point. >> cancelling those trading would be insuring that we're not going to see a computer glitch able to take a firm down. that's better than taxpayer money. >> i just feel bad for the employees of the company that held stock, you know, they had 401 k or whatever they di

knight ceo tom joyce will be sitting down with our own bob pisani. stay tuned for that. >> quick question before we go. by the way, thanks for talking over the cops there. but -- >> it was a fire engine, andrew. >> fire engine. hopefully not a fire there. anyway. the question for you this morning, is any of those investors and this is what i was on the phone this weekend didn't understand this, going become a majority shareholder in the company meaning they are taking 70% but they are all doing it -- there's many different investors in there. so who ultimately will be controlling this company? to the extent anybody has a majority at all. >> i don't have any insight into that at this point. but as you mention ad group of them so you wonder who is going to end up being the majority stake. maybe we'll get insight on that later today. or mr. joyce may talk about that to mr. pisani. >> you see why it's better to be in studio. you talk about how you go out there and -- fire engines never go by. fire trucks never go by. it begins with f and end in tk. >> th

bob, i think tom joyce of knight would be a little -- have a different answer that you do. you're saying leave the machines, they're not to blame this case, right? >> no, the machines were programmed incorrectly in this case, so blame properly lies with the developer or developers of the software. blowups are not unique to machines. i was a trader on wall street in the '90s, and there were plenty of human traders that blew up also. it's survival of the fittest, poorly designed software, operated by humans or machines, occasionally blow up. that's what happened here. >> what needs to be done? how many years since the flash crash. it feels like the fcc and the cftc are powerless to address these problems. >> i think the fcc foresaw events like this occurring and that's what led to the market access proposal for sponsored access. it mandated all trading firms to go through a suite of checks. a simple check would have presented this loss. a similar thing happened to my firm several months ago. we traded against retail flow, and there was a change i a system at a brokerage firm,

tom joyce kept the business today. new investors own almost 75% of the company. he launched an internal investigation to determine exactly what happened and why it took so long to shut that errant program down. i asked him if he might implement new rules to limit the damage of this sort. >> i support additional rules if we have the data around which to craft the rules and we will have the data once the investigation is complete. >> now, there are some-wide circuit breakers to hold trading in large price swings. one idea is to look at circuit breakers to slow down or halt trading in unusually large spikes in volume, not just in price and what we saw with the knight trading issue so if knight does 100,000 -- 1,000 trades a second and then suddenly 25,000 trades a second, tyler, the system would pause or halt. one other issue discussed is exactly where mr. joyce's future lies. he is safe at the time being and the chairman. and there is some discussion that with new investors in, maybe a nonexecutive chairman might be more appropriate. that's one of the things discus

joyce. 75% ownership away from him. thank you so much. stick around. we have a lot more headed your way on this edition of "the closing bell." >> coming up -- hard times ahead. noted market author harry dent says the baby boomers are about to lower the boom on the markets. how so? 0% yield on stocks. the bubble bursting in the bond and gold markets. dow sinking to 3300 in the next 2 1/2 years. and -- >> dogs and cats living together, mass hhysteria. >> we will tell you how to protect your assets. plus, congress taking a month off. despite the looming fiscal cliff. >> you are going to do what? >> is congress sabotaging our economy? and caught red-handed. new york state accusing standard chartered bank of hiding transactions with $250 billion with iranian government-owned businesses. the latest explosive details are just ahead on the lost closest. on the "closing bell." from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ]

facing a big loss and falling revenue, tom joyce and the team are scrambling for a solution, a solution people on the street say needs to happen in the very near future in order for knight to survive and for more on that let's go to my colleague kayla tausche. >> thanks so much, mary. the firm has until monday to survive and because the trades on wednesday, knight on the hook for them. $440 million and when those trades settle, they will be on the hook for the entirety of that amount. that's why they hired a firm for a sale or a capital injection for the company. that's something that we expect to happen, maybe not today but definitely over the weekend. a lot of friends of knight's on wall street really seeking to rescue this firm to help shore up its capital base in this time of need. now, of course, there's a report this morning about the potential loan or credit line rather that it has gotten to be the regulatory capital that it needs to operate business today but that still doesn't answer questions of potential long-term funding or capital to pay for the trades when they come due on

i talked to to some other people who said that tom joyce's, they call him a stand-up guy and they feel that if anyone can get the deal done, it would be him. back to you. >> mary, thanks so much, mary thompson. european close is coming up. +g#a#a#a#a#a'9#a+=#a#a#a#a#a#a#a >>> we go to the close in europe for the end of the week and it's a very powerful rally. check out the numbers in detail. a reassessment of what mario draghi actually said yesterday. what it means for intervention and for coordination further down the line. and also, simply because of the move that you have seen at the short end of the bond markets, we'll come back to that in a molt. but obviously the news that you had here with the employment report, hasn't actually hurt the gains that we've had during the course of the session. we have moved higher. that's italy up 6% today. spain up 6%, but even the top 50 blue chips around europe are 4.5%. that's because a lot of those 50 blue chips are still banks. and let's have a look at what's happened at the short end of the curve. and you'll see what i mean. yesterday mario

we've talked to traders who say they havesh did you tom joyce the ceo of knight tells scott wapner, he has no comment on anything yet regarding the trading. it's just such a wide number of so many stocks. dole, juniper, corning, molycorp. it's just dozens of stocks, but trying to get an explanation, all you need to find from everybody, as bob pisani as mentioned, it's algos, algos, algos, algorithms in the market. >> and melissa said the name being associated, but nothing confirmed, is knight capital group. to highlight the point, all we have is chatter, but knight capital group in fact is down 11.5%. what have you heard about that? >> well, again when you talk to traders and they say they receive messages from knight, talking about, you know, technical issues, but we can't get that confirmed from knight, even though you talk to people who are clients of knight, but we're trying for double, triple confirmation here before we come with anything specification. >> thank you, herb. >> crazy. why would it materially impact the stock, though? why, even if there was a probeen with that, would

he also hasn't heard from ceo tom joyce. he expressed confidence eventually the company would be acquired, that's a a sentiment others shared with us outside of the trading headquarters here, all declining of course to go on camera and most declining any comment saying they have told not to speak with the press. one female employee came out visibly upset, she said "you need to know this is one of the best firms ever" and also told us that we needed to get a life. such emotions are understandable, given the firm's existence hangs in the balance today. its stock down 75% since wednesday when new software triggered a trading glitch that caused millions of erroneous trade and also causing a $440 million loss for knight. that loss could prove to be a mortal blow, it's more than the trading giant's cash on hand and tripled its profits from last year, it spurred, joyce, a merrill lynch veteran and ceo since 2002 to reportedly hire sam o'neil to seech a cash infusion or outright buyer. the question is how much more time does joyce h

tom joyce seems universally respected. but the stock went from $13 to below $3. do you think the board should take action here? should he be fired? >> you know, we did advise -- i'm not going to comment on that. it was a trading error. i think the board has -- the board has a responsibility to review it. i'm not going to comment on -- that's up to them. it's something that i really shouldn't weigh in on right now. >> rich, good to speak with you. thanks for your time. much more "squawk on the street" coming up next. [ male announce] to hold a patent that has changed the modern world... would define you as an innovator. to hold more than one patent of this caliber... would define you as a true leader. to hold over 80,000... well, that would make you... the creators of the 2012 mercedes-benz e-class... quite possibly the most advanced luxury sedan ever. ♪ join mercedes-benz usa on facebook for the best summer sweepstakes. sven's home security gets the most rewards of any small business credit card! how does this thing work? oh, i like it! [ garth ] sven's small b

let's say hello to joyce a caller from chicago. hi, joyce. what do you say? >> two quick things. when you say about mitt romney about this lie he got out about the president with this welfare he signed on to it as well as about the military. so this is nothing new for mitt romney. he lies about everything. the first ad he took out about the president saying if we talk about the economy, we will fail john mccain said that. it's a natural known thing mitt romney is a lying cheat in waiting. as far as the congress goes i keep hearing you say this is a do-nothing congress. they have done quite a bit. they have done quite a bit for not to do for this country, kept the country from going forward. they have kept people from going back to work. they have kept transportation bills in hold. so they have done a lot to not to help this country. so say it like that. >> okay. thank you, joyce. i don't know how we say it like that. >> joyce makes -- >> a do-wrong-thing congress. >> there is a compelling argument. yes get into it in this story but people say they have been a big drag on the econ