The Dark Knight Capital Rises

Knight Capital lost $10m a minute. Bane could learn a thing or two.

Spoilers for The Dark Knight Rises follow.

While the obvious cinematic comparison with an automatic trading system going rogue for inexplicable reasons and losing its owners $440m in just 45 minute may be the Skynet system of the Terminator series, we can't help but be a little reminded of a key scene in the apex of Christopher Nolan's Batman trilogy.

Bane, the goatse-mouthed villain who sounds like an evil Father Christmas, breaks into the Gotham Stock Exchange, kills some guy, and then proceeds to use all manner of mild technowizardry to make huge amounts of bad trades under Bruce Wayne's name, bankrupting him and forcing him to relinquish his place on the board of Wayne industries.

Now, even in the film as it stands, it's not entirely clear why actually does that, as his next action involving the board is to storm in and force them to hand over a fusion reactor at gunpoint, something which he could have done with Wayne present. Nor is it really explained why Gotham Stock Exchange didn't just roll back any transactions made in the period when a gun-toting madman was holding the exchange hostage and executing obviously illegitimate trades, as the New York Stock Exchange did after Knight Capital's algos went a bit crazy on Wednesday. 

But really, we now know that Bane didn't have to do anything at gunpoint at all. If he had just got hold of Wayne's computer-aided trading wing – and come on, Bruce built a computer which could spy on an entire city using intercepted mobile phone transmissions, don't try to tell us that he didn't do computer-aided trading – he could have lost him almost $200,000 a second in untraceable, unrollbackable, instant transactions which would have left his corporate reputation in tatters. Silly Bane.

Knight Capital itself certainly isn't doing much better than Wayne Enterprises. That $440m it's lost, from selling all the stocks it accidentally bought during its computer glitch, easily surpasses the company's entire quarterly revenue for last quarter. Its own shares were down 75 per cent on their Wednesday morning peak, and are likely to fall further today. It has made itself the target of hostile takeover rumors, and probably irretrievably damaged its reputation for being a safe pair of hands. For a company which once handled 11 per cent of all American stocks, it's an ignominious fall from grace.

Bane: Surprisingly inept at losing large amounts of other people's money.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Ed Miliband on Brexit: Labour should never be the party of the 48 per cent

The former Labour leader has not ruled out a return to the shadow cabinet. 

What do George Osborne, Jeremy Corbyn and Ed Miliband have in common? A liking for a soft Brexit, it turns out. 

But while Osborne is responding to the border lockdown instinct of some Tory Brexiteers, the former Labour leader, along with Chuka Umunna, Lisa Nandy and Rachel Reeves, has to start by making the case to fight for Brexit at all.

And that’s before you get to the thorny and emotional question of freedom of movement. 

Speaking at a Resolution Foundation fringe event, Miliband ridiculed calls to be the “party of the 48 per cent”, in reference to the proportion who voted to stay in the EU referendum.

Remain voters should stop thinking Brexit was a “nasty accident” and start fighting for a good deal, he urged.

Miliband said: “I see talk saying we should become the party of the 48 per cent. That is nonsense.

"I don’t just think it is nonsense electorally, but it is nonsense in policy because it buys into the same problem people were objecting to in their vote which is the old ‘I’m right, you’re wrong’”. 

Remain voters shared many of the same concerns as Leave voters, including on immigration, he said. 

Miliband praised the re-elected Labour leader Jeremy Corbyn’s comments that a hard Brexit would be a disaster. He said: “We have to engage in these negotiations.”

Although he said he “anticipated” staying on the back benches, he did not rule out a return to the shadow cabinet, and urged the party to use its newly recruited member, many of whom joined under Corbyn.

Miliband was backed up by Nandy, seen as a rising star of the party, who said there was longterm dissatisfaction with jobs and wages: “You throw freedom of movement into the mix and you create dynamite.”

She also called for Labour to throw itself into Brexit negotiations: “We have been stuck between two impossible choices, between pulling up the drawbridge or some version of free market hell.

“But the truth is we are a progressive, internationalist, socialist party and we can’t afford to make that false choice.”

Reeves, who wrote in The Staggers that freedom of movement should be a “red line” in Brexit negotiations, said: “I don’t buy this idea that people who voted Leave have changed their minds.”

And she dismissed the idea of a second referendum on the eventual deal: “If people voted against the deal, then what?”

But while the speakers received warm applause from the party member audience, they were also heckled by an EU national who felt utterly betrayed. Her interruption received applause too.

Umunna acknowledged the tensions in the room, opening and ending his speech with a plea for members not to leave the party. 

Having called identity politics "the elephant in the room", he declared: “We have got to stay in this party and not go anywhere. It is not just because you don’t win an argument by leaving the room, it is because we are the only nationwide party with representatives in every region and nation of this country. We are the only party representing every age and ethnic community. 

“Stay in this party and let us build a more integrated Britain.”