UBS Confirms $356M Loss on Facebook (FB), Orders Entered Multiple Times
Tweet
Share
E-mailGet Alerts UBS Hot Sheet
Join SI Premium – FREE
UBS AG (NYSE: UBS) confirmed earlier reports that the bank lost $356 million on mishandling of the Facebook (Nasdaq: FB) IPO. The story broke last month, and at the time many investors had a hard time imagining how the bank’s losses could be so large.
According to a statement release by the bank, “As a result of system protocols that we had designed to ensure our clients' orders were filled consistent with regulatory guidelines and our own standards, orders were entered multiple times before the necessary confirmations from NASDAQ were received and our systems were able to process them. NASDAQ ultimately filled all of these orders, exposing UBS to far more shares than our clients had ordered.”
While most agree with UBS that the losses were a result of “gross mishandling” by Nasdaq, many question the intelligence of UBS’s systems. The UBS loss is much larger than the $62 million Nasdaq set aside to compensate its clients for their loss, a number Nasdaq claims is fair.
According to a statement release by the bank, “As a result of system protocols that we had designed to ensure our clients' orders were filled consistent with regulatory guidelines and our own standards, orders were entered multiple times before the necessary confirmations from NASDAQ were received and our systems were able to process them. NASDAQ ultimately filled all of these orders, exposing UBS to far more shares than our clients had ordered.”
While most agree with UBS that the losses were a result of “gross mishandling” by Nasdaq, many question the intelligence of UBS’s systems. The UBS loss is much larger than the $62 million Nasdaq set aside to compensate its clients for their loss, a number Nasdaq claims is fair.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Karman Line Acquisition closes $200M IPO on Nasdaq
- Londian Wason New Energy Tech opens at $26, above IPO price of $22
- Karman Line Acquisition prices $200M IPO on Nasdaq
Create E-mail Alert Related Categories
IPOs, Insiders' BlogRelated Entities
UBSSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
