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)
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(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. (Read more facebook IPO stories.)

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