$350 million in Facebook losses?
UBS is reportedly sitting on losses that could be as high as $350 million stemming from its investment in the Facebook initial public offering, and is preparing legal action against Nasdaq as a result.
UPDATED 3:50PM: None of us can figure out the $350 million loss estimate could possibly be true if UBS was only trading 1 million shares on day one and the stock had a 4 point range (42 to 38). Felix Salmon and Kid Dynamite are both scratching their heads.
Original post below...
The furor over Nasdaq's handling of the Facebook IPO simply will not abate, firms that have lost big continue to come out of the woodwork.
UBS is sitting on losses that could be as high as $350 million stemming from its investment in the Facebook initial public offering, and is preparing legal action against Nasdaq as a result, people familiar with the matter told CNBC.
That loss is some ten-times more than the $30 million number that is currently being speculated in the market by others.
The issue has to do with the failure to get confirmations and executions from the Facebook trade.
These people said UBS wanted 1 million shares, but when it did not receive confirmations, it repeated the order multiple times and was left with much more than it intended.
My "all-time low" theory grows more compelling by the day.
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