Banks Blast Nasdaq's Proposed $62M Facebook IPO Deal

Law360, New York (August 23, 2012, 5:45 PM EDT) -- Nasdaq OMX Group Inc.'s negligence in bungling Facebook Inc.'s initial public offering requires a higher payout to investors than its proposed $62 million, Citigroup Inc. and UBS Securities LLC told regulators on Wednesday, with one blasting the exchange for purportedly hiding behind regulatory immunity.

In separate letters to the U.S. Securities and Exchange Commission, Citi and UBS said that the proposed $62 million payout didn't come close to covering investor losses caused by Nasdaq glitches on the day of the IPO. Citi also said that the...
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