Nasdaq: We Owe Industry Apology Over Facebook IPO
It's offering clients $40 million to cover losses
By Dustin Lushing, Newser Staff
Posted Jun 6, 2012 5:03 PM CDT
Bystanders watch through the Nasdaq windows as Facebook shares began trading on May 18th, 2012.   (AP Photo/Richard Drew, File)

(Newser) – Nasdaq is offering $40 million in cash and rebates to its clients to make up for the glitches during the Facebook IPO, reports Reuters. One problem: Total claims by firms who lost money because of the technical snafus could reach $150 million to $200 million, say two senior finance execs. Brokers were in the dark for nearly two hours as to whether their trades were executed during the IPO, leading to major losses.

"Clearly we didn't succeed here," Nasdaq chief executive Bob Greifeld tells the Wall Street Journal. He and other top officials "owe the industry an apology," Greifeld added, saying the exchange was "humbly embarrassed" by the fiasco. As for Facebook's stock, it actually ticked up a bit today to close at $26.81, notes MarketWatch.

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Showing 3 of 5 comments
spider_jerusalem
Jun 7, 2012 6:36 AM CDT
but you know a small pocket of cats made a shit ton of money on it, and thats why it happened
saucier111
Jun 7, 2012 12:34 AM CDT
I have worked as a pit boss in a major casino for many years, at least we give a sucker a even break now and then.
shaboom
Jun 6, 2012 8:40 PM CDT
Clealry NASDAQ was in the wrong. An apology will not be enough. Facebook should also sue over irreprerable damage to their stock.