According the Guardian:
The loss, which drove the UBS investment banking arm to a SF130m loss, was caused when UBS entered too many orders for Facebook shares into the Nasdaq system which crashed under the weight of the record-breaking flotation, or initial public offering (IPO), and was unable to process the orders.
"As market marker in one of the largest IPOs in US history, we received significant orders from clients, including clients of our wealth management businesses," UBS said.
"Due to multiple operational failures by Nasdaq, UBS's pre-market orders were not confirmed for several houses after the stock had commenced trading
"Orders were entered multiple times before the necessary confirmations from Nasdaq were received. Nasdaq, ultimately, filled all of these orders, exposing UBS to far more shares than our clients had ordered," the bank said in its statement.This resulted in the bank entering orders "multiple times" and left UBS with more shares than it needed - and those shares have since fallen almost 50% in value.
With the fallout from Facebook's dismal adventure as a publicly-traded company still ongoing, it seems there are many very angry (and considerably poorer) investors seeking recompense - with some, such as UBS, seeking to recoup millions.
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