UBS to Sue Nasdaq Over Facebook IPO

Bank slams 'gross mishandling' of debut after losing $356M

By Matt Cantor,  Newser Staff

Posted Jul 31, 2012 4:27 AM CDT

(Newser) – More fallout from the Facebook IPO: UBS is planning to sue Nasdaq over a market debut that resulted in $356 million in losses for the Swiss bank. "As a market maker in one of the largest IPOs in US history, we received significant orders from clients," UBS said. "We will take appropriate legal action against Nasdaq to address its gross mishandling of the offering, and its substantial failures to perform its duties."

The bank has fallen on tough times, with second-quarter profits at $435 million—down 58% from a year earlier and 49% from the first quarter. That was far below expectations, as the bank struggles with continuing international financial woes. It doesn't expect much improvement for the third quarter, the Wall Street Journal notes. The firm hopes to improve its position by shrinking its investment banking arm to concentrate on private banking.

In this Friday, May 18, 2012 file photo, the animated facade of the Nasdaq MarketSite welcomes the Facebook IPO.
In this Friday, May 18, 2012 file photo, the animated facade of the Nasdaq MarketSite welcomes the Facebook IPO.   (AP Photo/Richard Drew, File)
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