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 Read More
“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 Read More
Nearly three weeks later, Nasdaq got around to explaining how it plans to compensate investors who suffered losses due to delays processing Facebook trades on May 18, the day Zuck & Co. rung in their IPO. There’s some interesting stuff here:
As previously noted, the exchange intends to distribute $13.7 million directly to Read More
This should be fun, at least for those of us without any skin in the game: Nasdaq will disclose plans to compensate investors who suffered losses when technical glitches delayed the trading of Facebook shares on May 18 in an SEC filing tomorrow, the Wall Street Journal is reporting.
The catch is that regulations govern Read More
Naive! Morgan Stanley CEO James Gorman has no sympathy for Facebook investors who expected to profit from a first-day spike in share prices. “People who thought they were buying this stock so they could get an enormous pop were both naive and ordered under the wrong pretenses,” Mr. Gorman said yesterday in an interview with CNBC. To which he might have added: “Didn’t they read Devitt’s research?” Mr. Gorman, of course, had this to say in January to investment bankers upset over Morgan Stanley pay cuts: “You’re naive, read the newspaper.“
Citi’s country-bred whistle-blower: Sherry Hunt started her career in the mortgage business as a 17-year-old mom processing home loans in Alaska. By the age of 55, Ms. Hunt was supervising 65 loan officers in Citigroup’s mortgage unit. The year was 2004, and business was booming. Citi was buying loans from outside lenders that had been secured with phony documents, and Ms. Hunt’s reports highlighting defective loans were being buried. The housing bubble popped, of course, and Citi took $45 billion in Federal bailouts. That didn’t stop the bank from processing defective loans. In 2011, a supervisor told Ms. Hunt and a colleague that if the number of loans being classified as defective didn’t fall, it would be “your asses on the line.” The country girl turned banking executive didn’t back down. In the spirit of all great Americans, she went to court. Bob Ivry goes there too, profiling Ms. Hunt, who would ultimately win $31 million in a whistle-blower suit against the banking giant, in July’s Bloomberg Markets magazine.
Guess rumors that Facebook is working on building a smartphone of its own didn’t help: Facebook fell another 9.6 percent today, closing at $28.84, 24 percent below the offering price.
That comes after a New York Times story this weekend suggesting that Zuck & Co. have been assembling hardware and software engineers to Read More
Muted response: As the clock ticked past Facebook’s scheduled open, Nasdaq stayed mum on the technical glitches that delayed trading in the social media company’s stock by 28 minutes. The resulting chaos lasted hours, causing confusion over who had bought and sold how many shares at what prices—and leading to about $115 million in losses Read More
Henry Blodget, BusinessInsider aggregator-in-chief, disgraced Merrill Lynch analyst and the pundit who spent the weeks leading up to the Facebook IPO hammering on what were at face incongruous themes—overpriced Facebook stock was “muppet-bait” and Mark Zuckerberg was the greatest—is out with a new Facebook trope that’s Internet fantastic:
The ongoing controversy Read More
Prosecutors tried to stitch together separate strands in the insider-trading case against former McKinsey & Co. CEO Rajat Gupta, Facebook’s market makers may have lost $100 million due to Nasdaq glitches, and more in today’s Wall Street roundup.
U.S. v. Gupta: It was wiretap day at U.S. vs. Gupta, as prosecutors played FBI recordings of Read More