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UBS Not Sweating The Small Stuff

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 familar with the matter told CNBC … 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 … “Consistent with our policy on market comments on our positions or intra-quarter performance, we are not disclosing the amount of the loss, which is not material to UBS,” UBS said in a written statement. [CNBC, Related: UBS Doesn’t Get Out Of Bed For Less Than $50 Billion In Losses]

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124 Responses to “UBS Not Sweating The Small Stuff”

  1. ParkAve says:

    Jesus…it just never ends for those guys does it.

  2. hangtime79 says:

    When Mike the intern was sending our order in through E-Trade, it said only click the submit button once, but it never came back up. So I went over and we kept hitting F5, clicking the refresh button, and hitting submit nothing. Finally the screen came back up (that's what we get for using a dial-up connection), and Mike and I had bought something like 35MM shares. That's when I relaxed, we had a ton of stock but as an IPO it should go up and past 40. Mike and I would be heroes to the firm….

  3. Guest says:

    I can count the number of people surprised that UBS had an error trading FB on my fist.

  4. Hrmph says:

    UBS has changed its status to "Proper F*cked"

  5. Kweko says:

    Ok…..everybody all at once…..U….B….S….suuuuuuuuuucccccckkkkkssss!!!!!!

  6. Mark Z says:

    And I thought the Winkolvii were losers…..Jesus

  7. guest says:

    Funny story, the same exact thing happened to me when I was buying some IG 9 tranche

    -B Iksil

  8. Guest says:

    Any CFA's out there that can help me understand how many "not material" losses does it take to make a material loss?

  9. Dear Rat Bastards says:

    If hundreds of millions of dollars "are not material to UBS" then the dumbasses at UBS should be handing out bonuses in the hundreds of millions of dollars. After all, to them, it's just a bunch of money they don't care about, so they should give it to some one who does.

    -Guy Who Wants A Hundred Million Dollar Bonus

  10. Jesus Juice says:

    Leave me out of this.

    -Kevin Hart

  11. Guest says:

    Losing money on a deal they weren't even involved in… classic UBS.

  12. Light Turner-Offer says:

    I'd love to see the "Timeline" of UBS' self-imposed hits from 2008 to this.

  13. UBS MD says:

    Guys….we've gone from losses of 50 billion….to 2 billion….to 350 million. We are making real progress.

    • guest says:

      that was funny, except it reminds me of the US economy ("good news today, unemployment increased at a slower rate!") which then made it less funny. not your fault though.

    • roger says:

      Let's not forget the LTCM loss UBS had of $680 million in '98, next up 50 billion 2008 thereon an annual loss.

  14. Richard X. Bove says:

    The fundamentals of the industry have never been better. It is only the unknown, unquantifiable, contagion risk which is keeping these stocks down.

  15. lolwut says:

    Meanwhile in Chicago…

  16. Cartman says:

    "UBS press release reveals losses could be as high as tree fiddy"__

  17. itcy trigger finger says:

    the same thing happens to me when i click the "submit comment" button twice because my comment didn't immediately appear the first time…

  18. Snigdha Nandipati says:

    the same thing happens to me when i click the "submit comment" button twice because my comment didn't immediately appear the first time…

  19. UBS Fashion Quant says:

    Hollister polo with the colar popped…nice touch

  20. NY Sodaway says:

    Man. UBS really does suck.

  21. MaharajaButtocks says:

    LOL! Only a UBS trader would think this overvalued "$100 bn" company is a good buy. Also what's up with the picture of Akon lookin' all sad?

    • Guest says:

      He's locked up and they won't let him out, but you need to examine your motives.

      -Not Akon, but a sympathizer

  22. UBS IT says:

    I can't believe these idiots kept hitting the "enter" key over and over!

  23. B Iteme says:

    The funny thing is that by repeating the order multiiple times they manipulated the market and drove up the price during the first few hours of trading. They should now be sued for falsely pumping up the price by other idiots who bought this stock at the highs.

    • guest says:

      look, they got confused and made an honest mistake. pump and-dump, pump-and-hold-for-a-loss, it's too much to keep track of.

  24. Guest says:

    Please remove "not part of the Facebook deal" from the competitive advantages section of all ECM pitchbooks.

    UBS ECM MD

  25. Beamers Employee says:

    Is that why we were getting confirms shoved at us this past week?

  26. Tin Cup says:

    Maybe UBS should just have a jail cell constructed inside our offices so the rogue traders don't have a long perp walk. Here is to another year of zero bonuses in the Equities Division

    ECM MD

  27. UBS employee says:

    I'm sad

  28. MS Banker says:

    HAHAHA

  29. mrpink says:

    Sad Trombone being played in Stamford now…

  30. roger says:

    This is why you don't jerry rig VB macros to submit trades.

  31. roger says:

    Maybe they shouldn't have outsourced their trading system entry system to HCL tech in India after all http://business-standard.com/india/news/hcl-techn

  32. UBS Classic says:

    350mm loss, is that all?
    Dumb & Scumber ex-heads of UBS equities

  33. Guest says:

    All in favor of letting UBS handle the Europe situation say I.

  34. Guest says:

    Matt

    We need you here, brotha. Please explain how a non member of the selling group could lose
    $350mm on a deal. In fact, please explain how any reasonably big sell side trading desk could lose anywhere near that much on any stock.

    And please keep it under 5000 words.

  35. MS Banker says:

    HAHAHA

    Jamie

  36. Think rationally says:

    This is bad journalism from CNBC. The article says MAY have trading loss of $350m. The real figure is of course nowhere near that!

    Facebook IPO price: $38
    Facebook current stock price: around $28
    Hence, loss on every Facebook share: $10

    UBS wanted 1million shares and would therefore have made a loss of $10 million.
    Assuming that because of the glitch, they got 5 times as much as they wanted, ie 5 million (which is already a pretty strong assumption), then their losses are of $50 million, NOT $350 million, which is a figure CNBC got where??

    • Think says:

      Losses could easily have reached 350 if they sold puts to their clients. HENCE, thinking rationally, is rarely enough to reach the right conclusion.

      Like Thinking rationally about historical data where real estate prices never when down, THUS going long super seniors.

      • UBS MD says:

        "Like Thinking rationally about historical data where real estate prices never when down, THUS going long super seniors."

        Guilty as charged.

        – 2008 UBS Asset-backed Securities MD

  37. UBS Clown says:

    Maybe they pressed the F5 button 35 times……….

    Btw, the story was probably fed to CNBC by someone inside UBS.

    • Guest says:

      Let's wait for the real numbers. I bet it is indeed nowhere near 350 million, which is just absurd.

  38. Not Me says:

    So that's why we had to go long 35MM shares of Zynga to hedge this position.

    -Head Trader UBS Hedging Desk

  39. also thinking says:

    Have to agree w/ Think Rationally above. For UBS to have lost $350 million they would have to do significantly more than just what the article says (pressing buy on 1 million shares numerous times).

    The other point above about selling puts – sure that can exponentially increase your losses… but the article never says anything about that. The point here is that its definitely bad journalism — either UBS didn't lose $350 million, or they did a whole lot more than just buying shares long. Something's missing in that article.

    • Guest says:

      I'm not sure if this is bad journalism as you claimed it to be.

      I'm no fan of CNBC or Maria Bartiromo. But the information has to be pretty solid for her to attach her name to the story. Another theory is that the story was leaked to the press by NASDAQ to embarass UBS so they do not dare to sue for the full amount.

      Last year, Barclays kept its mouth shut when market chatters murmur'ed they lost big on commodities. They denied all allegations and rumours at that time but had to come clean when the announced their full-year figures.

  40. Malisa says:

    Maybe it's time for Warren Buffett to step in?<img src=http://www.mobilediscount.info/ikea/ssi.jpg> <img src=http://www.mobilediscount.info/xbox/xs.jpg>

  41. The 1% says:

    I bet his new money making 419 scam will be up and running very soon

  42. Hal 9000 says:

    its the computers . Im sure they had some black box algo buying the shit out of the stock when they didnt get back acks on the original 1mm order.

  43. UBS empoyee says:

    still sad

  44. Loving NYC says:

    Good news/Bad news:

    Good news – new managers' contracts (MS and PF) are iron clad….
    Bad news – bonus pool isn't looking so good again this year.

    Regular way at 1285!

  45. J. Tyrone Biggums IV says:

    A janitor at SAC Capital > HR intern at GS > Risk Managment analyst at JPM > PWM VP at Jefferies > Equity Trading MD at UBS

    – Custodian at SAC

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