Citigroup will attempt to recoup some of the $20 million or so it claims to have lost during Facebook’s botched initial public offering last May 18 by filing a claim for compensation from Nasdaq parent Nasdaq OMX Group, according to Dow Jones Newswires.
Job seekers! Prepare for big interviews and land your dream job with the help of our Job Search Intensive, and interactive online event starting June 11, 2013. Over four weeks, we'll show you how tow revamp your resume, get noticed by recruiters, nail your interviews, and negotiate your salary. Sign up for our Webcast Only or Full Registration package. Either way, save by signing up soon. 
Investor Uma Swaminathan of East Brunswick, N.J., filed a claim with the arbitration unit of the Financial Industry Regulatory Authority in July, regarding Morgan Stanley’s role in Facebook’s botched initial public offering. However, there’s one problem: Morgan Stanley said Swaminathan was not one of its customers.
Nasdaq Chief Executive Robert Greifeld blamed the technical issues that affected Facebook’s initial public offering on “arrogance” and “overconfidence” while speaking at a conference of corporate directors at Stanford University’s Law School Sunday.
Nasdaq continues to catch heat for its role in Facebook’s troubled initial public offering, but the glare is starting to shine on the Financial Industry Regulatory Authority, as well.
It’s more than the $13.7 million Nasdaq originally proposed, but far less than the $100 million-plus traders and investors claimed they lost due to the exchange’s handling of Facebook’s initial public offering: Nasdaq filed plans with the Securities and Exchange Commission Wednesday detailing a one-time payout of some $40 million to compensate affected firms, according to published reports.
The embattled Nasdaq stock exchange will make its initial filing with the Securities and Exchange Commission Wednesday regarding steps it will take to compensate investors who lost money on Facebook’s initial public offering due to technical issues, according to reports.
Morgan Stanley Chairman and Chief Executive Officer James Gorman appeared on CNBC’s “Closing Bell with Maria Bartiromo” Thursday afternoon, reiterating that his company did nothing improper in the run-up to Facebook’s initial public offering and urging patience with the social network’s slumping stock, saying, “The story isn’t over. Again, we are at day eight here. Give this a little bit of time.”
Speaking at a weekly strategy meeting that was webcast to employees, Morgan Stanley Chairman and Chief Executive Officer James Gorman addressed allegations of improper conduct prior to Facebook’s initial public offering, saying that the company worked “100 percent within the rules.”
Alleged questionable tactics by underwriters prior to Facebook’s initial public offering last Friday continue to surface, with the latest report involving Capital Research and Management.
Were certain big-name investors made privy to information that should have been disseminated more widely? Such are the latest allegations with regard to last Friday’s Facebook initial public offering, which have led to a lawsuit filed against the social network and banks including Morgan Stanley today, following the call for an investigation yesterday by the Financial Industry Regulatory Authority and the Securities and Exchange Commission.
