UBS's $350M Facebook (FB) Trading Loss Doesn't Add Up...

June 8, 2012 3:44 PM EDT
Traders are beginning to the question the validity of reports out of CNBC regarding UBS’s (NYSE: UBS) alleged $350 million trading loss. The question isn’t whether the firm has a loss of $350 million... the question is how is it possible?

Assuming UBS ended up with 6 million shares at a price of $42, tried to sell at $35, failed, and ended up selling at $33 per share – the loss would be $54 million. So, how many shares did the bank buy? 39 million shares?

Word on the street is either the UBS trader was a complete idiot-monkey pressing a button, or UBS took a proprietary position in the Facebook IPO. Another possibility is the firm ordered 1 million and ended up with 39 million shares. If that is the case, Nasdaq really has some explaining to do.

In any case, the $350M number is suspicious, to say the least.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Insiders' Blog, Trader Talk

Related Entities


Add Your Comment