Cramer Quick Take: Avoid the Brokers
NEW YORK (TheStreet) -- Can Knight Capital Group(KCG) survive after its own trading platform turned against it, causing an estimated $440 million in losses?Jim Cramer told Debra Borchardt at TheStreet.com Thursday that it's clear the company needs to raise capital, but if Knight's trading partners don't get on board its chances are slim.
Cramer said he's not a fan of any of the brokerage stocks, as they clearly carry massive risks and offer investors few rewards. In a world of high-frequency trading, Cramer said the machines have become more important than the people. When that happens, the machines can wipe out your entire business in the blink of an eye.
Cramer said he blames the Securities and Exchange Commission for the current state of affairs. He said the agency's love of technology has caused it to turn a blind eye to the real risks of letting the machines run amok.
Watch the full Cramer interview here.
--Written by Scott Rutt in Washington, D.C.
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