UBS Puts $356 Million Loss on Facebook IPO; Swift Trade Set to Settle Finra Inquiry: Roundup

Faceplant: UBS saw profit fall 58 percent in the second quarter. The firm wasn’t helped by a $356 million loss

Faceplant: UBS saw profit fall 58 percent in the second quarter. The firm wasn’t helped by a $356 million loss connected to Facebook’s initial public offering, in which technical glitches at Nasdaq caused UBS to buy more shares than its clients had ordered. “We will take appropriate legal action against Nasdaq to address its gross mishandling of the offering and its substantial failures to perform its duties,” the bank said in a statement.

Sign Up For Our Daily Newsletter

By clicking submit, you agree to our <a rel="noreferrer" href="">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime.

See all of our newsletters

Day-trading settlement: The Financial Industry Regulatory Authority is expected to enter a settlement today with Swift Trade founder Peter Beck, and The Wall Street Journal as a long and excellent piece on the Hungarian-born entrepreneur’s global operations. Mr. Beck founded Swift in 1998 after reading about internet trading on an airplane; By 2008, the network employed about 4,000 traders in places like Romania, China and Nicaragua, where the firm could hire on the cheap. Swift also took an aggressive stance towards the law, failing to create a supervisory structure, creating an atmosphere in which traders reportedly manipulated prices.

Post-whale world: The type of hedge fund that profited on JPMorgan’s $5.8 billion trading loss in credit derivatives are looking attractive, Reuters reports, as investors seek less volatile investments. The obvious question (which probably has an obvious answer) is whether the credit funds are more stable, or just found themselves in the right place to take advantage of the trader known as the London Whale.

Whither Europe: Deutsche Bank (DB) blamed a 46 percent drop in a second-quarter earnings on the European debt crisis. BBVA said net income fell 58 percent, as Spain’s real estate crisis weighed on earnings. Things may be getting worse: the bank will set aside more than 3 billion euros against souring real estate loans in the second half of the year, after provisioning 1.43 billion euros in the first six months. Greece is running out of cash to pay everyday expenses such as police department salaries and pension disbursements. Unemployment in the eurozone rose to 11.2 percent.

Tale of the tiger (cub): As a student at the University of Virginia, John Gerson talked his way into an internship at Julian Robertson’s Tiger Management. Then joined John A. Griffin when the former Tiger deputy founded Blue Ridge Capital. Now Mr. Gerson, 37, has raised $1.2 billion to found a fund of his own, Falcon Edge Capital.

Fall guy? As Royal Bank of Scotland negotiates a Libor settlement with authorities investigating the bid-rigging matter, CEO Stephen Hester may be forced to leave his job ahead of plans.

Taking medicine: Nomura Holdings, Japan’s biggest brokerage, faces unspecified penalties after regulators recommended that the firm be disciplined after employees participated in insider trading schemes by leaking information about public offerings.

Soccer riches: Manchester United set a range of $16 to $20 a share in updated documents describing its initial public offering; at a midpoint of $18 a share, the offering would value the British soccer club at $2.95 billion.

Market crash: The bottom is falling out of the market for used private jets, according to The New York Post, hitting the one percent in their wallets.

Kohlberg director out: Christopher Lacovara, one of two managing directors at Kohlberg & Co., the private equity firm founded by Jerome Kohlberg, has left the firm to pursue other opportunities. Kohlberg & Co. was founded by Jerome Kohlberg, who also co-founded buyout giant KKR.


UBS Puts $356 Million Loss on Facebook IPO; Swift Trade Set to Settle Finra Inquiry: Roundup