No 'White Knight' Needed for Knight: Co-Founder

Traders work at a Knight Capital Group Inc. post on the floor of the New York Stock Exchange. Knight Capital Group Inc., struggling to stay afloat after a trading error spurred a $440 million loss.
Jin Lee | Bloomberg | Getty Images
Traders work at a Knight Capital Group Inc. post on the floor of the New York Stock Exchange. Knight Capital Group Inc., struggling to stay afloat after a trading error spurred a $440 million loss.

The co-founder and former chief executive officer of battered market-maker Knight Capital Group gave a bullish assessment of the company's future, telling CNBC that Knight can "definitely survive," even without the help of a financial savior.

If Knight should go under, "you'd have a hole in the marketplace," said Kenneth Pasternak who retired from Knight in 2002. The market-maker "needs to restore the confidence of the community at large, but its a very important player and frankly, was a very profitable player until three days ago."

Pasternak insisted that his former company did not need a so-called 'white knight' to rescue it from financial purgatory.

Pasternak added that the firm could rebound "in weeks, not months or years. It serves an unmet need in the marketplace."

The former CEO said he was invested in Knight himself, to the tune of holding "a significant six-figure portion" of the company's shares.

Sources have told CNBC the market making firm has hired Sandler O'Neill to find a buyer or an injection of new capital.

Pasternak said he would prefer that any potential backer be a private equity firm "who understands the DNA of the company" and preserves its independence.