• 08 Jun 2012 at 2:42 PM

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]

124 comments (hidden to protect delicate sensibilities)
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Comments (124)

  1. Posted by ParkAve | June 8, 2012 at 2:48 PM

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

  2. Posted by hangtime79 | June 8, 2012 at 2:49 PM

    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. Posted by Guest | June 8, 2012 at 2:51 PM

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

  4. Posted by Hrmph | June 8, 2012 at 2:54 PM

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

  5. Posted by Kweko | June 8, 2012 at 2:55 PM

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

  6. Posted by Mark Z | June 8, 2012 at 2:57 PM

    And I thought the Winkolvii were losers…..Jesus

  7. Posted by Miracle | June 8, 2012 at 2:58 PM

    Spell my name right bro. And at least we get DSL in here.

    -"The Kweks"

  8. Posted by ubs peon | June 8, 2012 at 2:58 PM

    UBS 'dislikes' your post

    —UBS Risk Management

  9. Posted by guest | June 8, 2012 at 3:00 PM

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

    -B Iksil

  10. Posted by Guest | June 8, 2012 at 3:05 PM

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

  11. Posted by Dear Rat Bastards | June 8, 2012 at 3:08 PM

    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

  12. Posted by Jesus Juice | June 8, 2012 at 3:09 PM

    Leave me out of this.

    -Kevin Hart

  13. Posted by reospeedwagon916 | June 8, 2012 at 3:10 PM

    We aren't sure…

    -Erin Callan

  14. Posted by Guest | June 8, 2012 at 3:13 PM

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

  15. Posted by Light Turner-Offer | June 8, 2012 at 3:14 PM

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

  16. Posted by Guest | June 8, 2012 at 3:15 PM

    There is no rock bottom.

  17. Posted by UBS MD | June 8, 2012 at 3:20 PM

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

  18. Posted by guest | June 8, 2012 at 3:26 PM

    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.

  19. Posted by Richard X. Bove | June 8, 2012 at 3:28 PM

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

  20. Posted by FKApmco | June 8, 2012 at 3:29 PM

    42
    -Douglas Adams

  21. Posted by lolwut | June 8, 2012 at 3:29 PM

    Meanwhile in Chicago…

  22. Posted by Cartman | June 8, 2012 at 3:38 PM

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

  23. Posted by Carsten | June 8, 2012 at 3:38 PM

    In our defense, we won't disclose gains either on the same principle.

    – UBS

  24. Posted by itcy trigger finger | June 8, 2012 at 3:42 PM

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

  25. Posted by Snigdha Nandipati | June 8, 2012 at 3:42 PM

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

  26. Posted by Guest | June 8, 2012 at 3:44 PM

    …and an inability to remember how many times you hit the "Enter" key

  27. Posted by UBS Fashion Quant | June 8, 2012 at 3:48 PM

    Hollister polo with the colar popped…nice touch

  28. Posted by More Accurately | June 8, 2012 at 3:50 PM

    You don't disclose what you don't have.

  29. Posted by NY Sodaway | June 8, 2012 at 3:56 PM

    Man. UBS really does suck.

  30. Posted by Arbitron | June 8, 2012 at 3:58 PM

    Worst comment since yesterday.

  31. Posted by MaharajaButtocks | June 8, 2012 at 4:01 PM

    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?

  32. Posted by UBS IT | June 8, 2012 at 4:04 PM

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

  33. Posted by B Iteme | June 8, 2012 at 4:06 PM

    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.

  34. Posted by guest | June 8, 2012 at 4:11 PM

    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.

  35. Posted by Guest | June 8, 2012 at 4:14 PM

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

    -Not Akon, but a sympathizer

  36. Posted by K.A. | June 8, 2012 at 4:16 PM

    I'm out, b*tches!!

  37. Posted by Guest | June 8, 2012 at 4:16 PM

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

    UBS ECM MD

  38. Posted by Beamers Employee | June 8, 2012 at 4:26 PM

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

  39. Posted by Tin Cup | June 8, 2012 at 4:37 PM

    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

  40. Posted by guest | June 8, 2012 at 4:39 PM

    I'm only comfortable talking about this under the guise of 'Mosaic Theory'

    -CFA Ethics Quant

  41. Posted by UBS employee | June 8, 2012 at 4:39 PM

    I'm sad

  42. Posted by MS Banker | June 8, 2012 at 4:43 PM

    HAHAHA

  43. Posted by mrpink | June 8, 2012 at 4:54 PM

    Sad Trombone being played in Stamford now…

  44. Posted by roger | June 8, 2012 at 6:27 PM

    Wasn't Mike..was Heinz and Gunther

  45. Posted by roger | June 8, 2012 at 6:32 PM

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

  46. Posted by roger | June 8, 2012 at 6:46 PM

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

  47. Posted by roger | June 8, 2012 at 6:48 PM

    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

  48. Posted by UBS Classic | June 8, 2012 at 7:00 PM

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

  49. Posted by Guest | June 8, 2012 at 7:09 PM

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

  50. Posted by Guest | June 8, 2012 at 8:56 PM

    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.

  51. Posted by MS Banker | June 8, 2012 at 11:10 PM

    HAHAHA

    Jamie

  52. Posted by Think rationally | June 9, 2012 at 5:00 AM

    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??

  53. Posted by Think | June 9, 2012 at 7:47 AM

    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.

  54. Posted by UBS MD | June 9, 2012 at 8:21 AM

    "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

  55. Posted by UBS Clown | June 9, 2012 at 8:53 AM

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

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

  56. Posted by Guest | June 9, 2012 at 10:54 AM

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

  57. Posted by Not Me | June 9, 2012 at 11:56 AM

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

    -Head Trader UBS Hedging Desk

  58. Posted by wadely | June 9, 2012 at 10:31 PM

    You deserve more bounce – thumbs up!

  59. Posted by also thinking | June 10, 2012 at 11:36 AM

    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.

  60. Posted by Malisa | June 10, 2012 at 1:31 PM

    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>

  61. Posted by The 1% | June 10, 2012 at 8:49 PM

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

  62. Posted by Hal 9000 | June 10, 2012 at 9:34 PM

    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.

  63. Posted by UBS empoyee | June 10, 2012 at 11:39 PM

    still sad

  64. Posted by Loving NYC | June 10, 2012 at 11:42 PM

    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!

  65. Posted by Guest | June 11, 2012 at 1:18 AM

    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.

  66. Posted by J. Tyrone Biggums IV | June 13, 2012 at 1:03 PM

    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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