UBS Probably Not Going To Get Close To What It Wants From Nasdaq For Facebook F*ck Up
Based on a judge's ruling today.
A divided U.S. appeals court rejected UBS AG's bid to force Nasdaq OMX Group Inc to arbitrate a dispute over the exchange operator's alleged "catastrophic mismanagement" of Facebook Inc's $16 billion initial public offering. The 2nd U.S. Circuit Court of Appeals in New York on Friday said UBS' agreement with Nasdaq to help make a market for Facebook shares did not entitle the Swiss bank to arbitration, in its effort to recoup more than $350 million of losses...Facebook's first day of trading on May 18, 2012 was plagued by technology problems, resulting in a delayed opening and tens of thousands of trade and cancellation orders being stuck in Nasdaq's system for more than two hours. While market makers lost an estimated $500 million on Facebook's IPO, federal regulators last year approved a plan for Nasdaq to repay only about $41.6 million. Friday's decision may therefore make it more difficult for UBS to recoup anything close to its estimated losses.
UBS cannot arbitrate vs Nasdaq over Facebook IPO: court [Reuters]
