Canaccord Genuity Morning Coffee on UBS (UBS): Blame Game
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Price: $18.58 +0.16%
Rating Summary:
10 Buy, 8 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Rating Summary:
10 Buy, 8 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Trade UBS Now!
Canaccord Genuity Morning Coffee on UBS (NYSE: UBS): Blame game.
UBS blamed its 349 million Swiss franc loss from Facebook’s (Nasdaq: FB) botched U.S. market debut on exchange operator Nasdaq (Nasdaq: NDAQ), saying orders for the stock had been entered multiple times due to a systems failure. In a particularly harsh tone, UBS accused Nasdaq of “gross mishandling” of the IPO and blamed the operator for making “multiple operational failures.” UBS said it would seek full compensation for its losses. “As market marker in one of the largest IPOs in US history, we received significant orders from clients, including clients of our wealth management businesses. Due to multiple operational failures by Nasdaq, UBS’s pre-market orders were not confirmed for several houses after the stock had commenced trading,” the bank said. When the exchange finally filled all the orders, UBS was left exposed to far more shares than its clients had wanted, saddling it with losses of hundreds of millions of dollars. Although one of Nasdaq's four largest market makers in the Facebook IPO, the bank didn’t address the issue of why it lost 10 times more than others, or whether its own traders erred in entering orders multiple times without confirmations. The Facebook loss is another blow to UBS, which swung to a secondquarter investment banking loss of 130 million francs from a profit of 383 million francs a year ago. Nasdaq OMX has so far only put aside $62 million to cover voluntary payouts.
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UBS blamed its 349 million Swiss franc loss from Facebook’s (Nasdaq: FB) botched U.S. market debut on exchange operator Nasdaq (Nasdaq: NDAQ), saying orders for the stock had been entered multiple times due to a systems failure. In a particularly harsh tone, UBS accused Nasdaq of “gross mishandling” of the IPO and blamed the operator for making “multiple operational failures.” UBS said it would seek full compensation for its losses. “As market marker in one of the largest IPOs in US history, we received significant orders from clients, including clients of our wealth management businesses. Due to multiple operational failures by Nasdaq, UBS’s pre-market orders were not confirmed for several houses after the stock had commenced trading,” the bank said. When the exchange finally filled all the orders, UBS was left exposed to far more shares than its clients had wanted, saddling it with losses of hundreds of millions of dollars. Although one of Nasdaq's four largest market makers in the Facebook IPO, the bank didn’t address the issue of why it lost 10 times more than others, or whether its own traders erred in entering orders multiple times without confirmations. The Facebook loss is another blow to UBS, which swung to a secondquarter investment banking loss of 130 million francs from a profit of 383 million francs a year ago. Nasdaq OMX has so far only put aside $62 million to cover voluntary payouts.
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