UBS better get a lot of new phone lines for all its offices since there will be so many lawsuits against it for fraud and other monetary crimes and now, it’s now suing Nasdaq because of orders the exchange allegedly messed up, and where UBS had to take several hundred million dollars of losses as a result, about $376 million to be more precise.
Essentially what occurred is that UBS clients wanted Facebook stock before the market opened, and which the bank entered, but apparently, those orders were not recognized by Nasdaq. Thus, UBS repeatedly entered these orders because they weren’t being acknowledged. Of course, Nasdaq did enter those orders, it’s just that apparently UBS never received the message, so now it holds millions of Facebook shares it didn’t want to have and it bought at IPO prices. Since the bank has held on, well, that’s a pretty hefty loss based on the Facebook price – it’s a shade under 22 bucks, which is quite a HUGE drop from 38 bucks in May.
So, the bank has sued and is pursuing action.
Story is HERE.
It’s getting really, really messy, and I don’t think many executives want to be in such a spot right now, because all it entails is dealing with one fire after the next, all while having the worry of government prosecutions in the deepest parts of your mind.
As for me, I’ll drink a beverage to this. Sheesh, these guys should squirm for once, and watching them just have to go through headache after headache every other day is indeed a refreshing change, but the government better start doing its job, because the natives are getting restless, and they want these guys in cuffs.