The lawsuit, we suppose is not so surprising, but the $350 million number is new. Knight Capital has said it lost $35 million to the delays in trading on Facebook's IPO day, and we've been reading that the stock's four biggest market makers—Knight, Citadel, Citigroup and UBS—suffered losses in the neighborhood of $110 million. The CNBC scoop, clearly, would blow that number out of the water, and while Nasdaq specified it would only compensate losses suffered under certain conditions...stay tuned.

The catch is that regulations govern how much the exchange can return to investors to make up for technological malfunctions—such claims are limited to $3 million a month, though Nasdaq has expressed desire to distribute an additional $10.7 million, or the amount the exchange earned on shares it unexpectedly held on Facebook's opening day.

Even at upwards of $14 million, Nasdaq could only begin to pay back losses suffered by Citigroup, UBS, Citadel and Knight Capital—the four largest market makers for Facebook stock who are believed to have lost up to $115 million on the trading delays. Total claims could range from $150 to $200 million, Reuters says, and Nasdaq appears to be playing hardball:

The exchange has done little to conciliate market making clients - a number of which lost tens of millions of dollars each due to the trading problems. There has been no outright apology.

Facebook shares, meanwhile, have continued to face-plant, falling today even as the S&P 500 climbed, coming to rest at $25.87, or down 32 percent from the offering price.

Muted response:

Falling star? Morgan Stanley's star investment banker Michael Grimes believes he did an excellent job with Facebook IPO, according to the Wall Street Journal. Fault for Facebook's languishing stock price—$31.91 at Friday's close—lies with the technical glitches in Nasdaq's trading operation, Morgan Stanley officials are whispering. That won't stop rivals from dropping the FB-bomb when competing with Morgan Stanley for clients.

Hedging Europe: It's unlikely that the European crisis will give way to an investing legend like George Soros, who made $1 billion petting against the British pound in 1992, according to Reuters. Hedge fund managers are plying varied strategies—from currency trades to bets on bank stocks or sovereign debt or even a more bullish attitude towards gold in anticipation of future fallout in Europe.

New polls showed that Greece's pro-bailout parties are gaining, easing fears of a eurozone exit. The news out of Spain was less good, as the government grapples to support ailing lender Bankia SA.

Activist gas: Carl Icahn bought a 7.56 percent stake in Chesapeake Energy, the natural gas giant reeling from a series of disclosures CEO Aubrey McCLendon's potential conflicts of interest. Mr. Icahn has called for the election of a new slate of directors before the board votes on a successor to Mr. McClendon as chairman. “Having the current board select a new chairman without shareholder approval and without allowing for shareholder representation is akin to asking the fox, who has plundered the hen house, to choose another fox to assist it in standing guard over the remaining hens,” Mr. Icahn wrote in a letter to the board.

Pay dirt: Comp at European banks was down.

A Bloomberg columnist sides with Jamie Dimon in wondering about executive pay at media companies.

Bean rush: Hydrofrackers depend on guar gum; farmers in northern India's desert states reap bounty.

New directions: JPMorgan is thinking about putting directors with actual risk management experience on its boards risk committee.

Re-primed: Lou Lebedin, JPMorgan's global head of prime brokerage, is being replaced.

John Kinnucan says he was sipping wine on his front porch in Portland, Ore., on Oct. 25 when a gray sedan pulled up and two men in business suits jumped out, identifying themselves as FBI agents.

Just because John Kinnucan enjoys the occasional glass of vino doesn't mean he's soft, and he sure isn't a snitch. After the Feds barged in and asked him to cooperate with an investigation, Kinnucan dashed off an email to his friends on the Street to warn them that the heat is on. He wrote:

Today two fresh faced eager beavers from the FBI showed up unannounced (obviously) on my doorstep thoroughly convinced that my clients have been trading on copious inside information.... We obviously beg to differ, so have therefore declined the young gentleman's gracious offer to wear a wire and therefore ensnare you in their devious web.

Kinnucan sent this tidy little missive to some big-deal firms, including SAC Capital, Citadel, Janus, Wellington and MFS. Is Goldman Sachs a figure in this story? Yes!

In another aspect of the probes, prosecutors and regulators are examining whether Goldman Sachs Group Inc. bankers leaked information about transactions, including health-care mergers, in ways that benefited certain investors, the people say. Goldman declined to comment.

People who tread in these potentially extralegal circles probably didn't start out on burgundy, but now may be a good time to switch to the harder stuff.

mtaylor [at] observer.com | @mbrookstaylor