Swiss investment bank UBS is set to sue US stock exchange Nasdaq over its mis-handling of the Facebook flotation, after it emerged today its bet on the firm cost it $356m.
UBS posted second quarter profits of CHF425m today, down from CHF1bn a year ago. According to the figures, CHF349m ($356m) worth of the decline was down to the UBS's decision to back Facebook, costing the bank half its quarterly profits. The Guardian has since reported UBS is set to take legal action against the Nasdaq for its "gross mis-handling" of Facebook's flotation. According to the bank, UBS's loss was incurred when it entered too many orders for Facebook shares into the Nasdaq system, which crashed under the weight of the record-breaking initial public offering and was unable ...
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