“Sorry” doesn’t help: Is anybody happy with Nasdaq’s plan to dole out $40 million in cash payments and future discounts to compensate market participants for losses suffered during the technical glitches that delayed trading in Facebook stock on May 18? The New York Stock Exchange cried foul, arguing that Nasdaq’s plan “is tantamount to forcing the industry to subsidize Nasdaq’s missteps” because it compels customers to trade on Nasdaq to receive compensation. Knight Capital, meanwhile, has said it lost $35 million of Nasdaq’s face-flop, and was displeased that the exchange’s $40 million proposal would not go far enough. “We are disappointed that Nasdaq’s compensation fund does not come close to covering reported losses from broker-dealers like Knight,” the firm said in a statement. Nasdaq’s plan requires approval from the Securities and Exchange Commission.
Facebook limbo: It’s not lost on the Wall Street Journal that investors who bought Facebook shares on the pre-IPO market are stuck with Zuck’s plummeting stock until November. (That’s when the lock-up period that bars employees from selling shares in the 90 days after the IPO ends.)
Life of Aubrey: Chesapeake Energy founder and chief executive Aubrey K. McClendon leads a lavish and highly leveraged life, Reuters reports. Among the findings: Chesapeake employees charged with conducting Mr. McClendon’s personal business, extensive use of company jets, sometimes for dubious business purpose, and loans against Mr. McClendon’s stake in the Oklahoma City Thunder, the NBA franchise in which the Chesapeake boss is part-owner.
Winnowing: Goldman Sachs is expected to name fewer than 100 partners this year, one of the smallest classes in recent memory, the New York Times reports, as the firm shrinks staff in response to lower revenue. Goldman has cut its headcount by about 8 percent in the last year, and axed about 50 employees last week. (In 2010, Goldman named 110 partners; in 2008, at the height of the financial crisis, the firm named 94 partners.)
Whither Europe: Spain sold debt, so that was good.
When capital isn’t enough: Morgan Stanley is the best-capitalized Wall Street bank. That may make regulators happy, but the firm faces the biggest ratings downgrade from Moody’s and trades at the greatest discount to liquidation value.
Prosecution rests: The government is expected to conclude its case in U.S. v. Gupta today.
Occupy no more? Reuters wonders if Occupy Wall Street is over.
Can we meet in the middle? R. Allen Stanford says time served is probably enough; the government, which won a conviction against Mr. Stanford for operating a $7 billion Ponzi scheme, recommended a sentence of 230 years.