European Central Bank gearing up to buy euro zone bonds

Welcome to the morning roundup. Here's a look at today's banking and finance news.

Euro zone bonds. The European Central Bank will gear up to buy Italian and Spanish bonds - but it will only act after governments there use their bailout funds to do the same, Reuters reports. The ECB said intervention would start next month, at the earliest. Stocks opened lower this morning following the news. 

Trading glitch. Knight Capital Group Inc. said electronic-trading glitches in its system are likely to cost the brokerage firm $440 million, the Wall Street Journal reports. The firm had warned big Wall Street trading companies to route orders elsewhere Wednesday due to a "technology issue."

Banking myths. Facing mounting pressure about their size and role in the global economy, big banks are being forced to perpetuate "three myths," a business professor writes in the New York Times. He argues the largest banks should be made small enough and simple enough to fail.

Berkshire benefits. Berkshire Hathaway Inc. is benefiting after Warren Buffett ramped up investments related to the U.S. housing market, Bloomberg reports. The Omaha, Nebraska, company is about 3 percent away from its top closing price since 2008.