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August 23, 2012 | By Andrew Tangel
Citigroup has lined up against Nasdaq's plan to compensate brokerages that lost money in the Facebook IPO. In a letter filed with the U.S. Securities and Exchange Commission opposing Nasdaq's plan to pay $62 million to brokerages that lost money in the botched initial public offering, Citi criticized Nasdaq's "grossly negligent conduct. " Facebook's May 18 IPO was fraught with technical problems that saddled brokerages with millions in losses. Nasdaq delayed the highly hyped offering, but decided to go through with it despite technical difficulties in its systems.
March 25, 2013 | By Stuart Pfeifer
The Securities and Exchange Commission has approved Nasdaq OMX Group Inc.'s proposal to pay brokerages as much as $62 million as compensation for last year's botched Facebook Inc. initial public offering. Nasdaq's trading system was overwhelmed by high volume on the first day that Facebook's stock traded, delaying trade confirmations and contributing to a chaotic and costly day for investors in the social media company. By some accounts, Wall Street firms lost as much as $500 million because of Nasdaq glitches during the Facebook IPO last May. Brokerages complained that they didn't get confirmation that trades were going through, leaving investors in the dark about whether they owned the stock, or at what price.
December 29, 2002
It is way past time for our various governments, legislatures, attorneys general, and courts to admit that corporations cannot commit misdeeds -- only persons can ("Brokerages Balk at Hefty Settlements," Dec 11). The continuing actions of corporate executives, personally or through underlings, purposely or by failure to supervise, causing losses of millions to others while reaping millions themselves, should be treated as felonies, resulting in prison and loss of their misbegotten fortunes.
March 22, 1998
Before the real estate recession of the 1990s, large brokerages gave agents an assortment of perks--such as paying for postage on mailers and for several lines of advertising each week on each listing--to help them build and maintain good production. As sales became few and far between and prices started going down, these perks gradually disappeared. Many overextended brokerages went out of business, and the survivors needed to tighten their belts. It was at the bottom of that market cycle that companies started taking an administration fee off the top of the commission before splitting with the agents, and began charging the clients an extra administration fee. We were always told that these fees were needed because it now took so much longer--and so much more advertising, etc.--to sell each house.
June 5, 1997 | (Bloomberg News)
Prosecutors charged Nomura Securities Co., Japan's largest brokerage, and two former top executives with illegally compensating a gangster for $430,000 in trading losses. The charges were the first in the scandal, which has widened to include the rest of Japan's Big Four brokerages and Dai-Ichi Kangyo Bank Ltd., the nation's third-largest bank.
June 8, 2012 | By Tiffany Hsu
For all the grief the glitchy Facebook IPO has caused Nasdaq (or is it the other way around?), the exchange operator has still managed to woo major companies away from its competitor, the New York Stock Exchange. Nasdaq OMX Group Inc.'s newest prize isKraft Foods Inc., which said Friday that it is abandoning NYSE to list on Nasdaq instead. The KFT ticker will make the jump on June 26. But it won't last long in that form: Kraft - which makes brands such as Cadbury, Maxwell House, Oreo and Trident - is in the middle of spinning off its North American grocery business.
May 19, 2012 | By Andrew Tangel
NEW YORK — First it popped, then it flopped. Facebook Inc.'s much-hyped debut on Wall Street was an event watched around the world. The social network's initial public offering valued it at $104 billion — more than market stalwarts such as McDonald's Corp. and Inc. The opening Friday seemed as if Facebook was destined for a big market surge, and the stock vaulted for a split second to $45. Then the surge evaporated and shares fell back to their IPO price of $38. Just 15 minutes after the stock opened for trading, the problems really began.
November 8, 1989 | From Reuters
Shearson Lehman Hutton Inc. will lay off several hundred workers over the next few weeks due to the recent slowdown in the financial markets, the brokerage company said Tuesday. The cuts would be the largest since the slew of layoffs that followed the October, 1987, market crash. Industry analysts predicted that a new round of staff cuts will occur on Wall Street due to recent sluggish retail brokerage activity and a slowdown in leveraged buyouts.
April 16, 1998 | From Bloomberg News
Executives at four brokerages colluded to drive down prices for stocks sold by another firm, eventually running the rival out of business in a scheme that involved tips passed to financial journalist Dan Dorfman, industry regulators alleged Wednesday. The National Assn. of Securities Dealers charged that the owners of New York-based Fiero Bros. Inc. and three now-defunct brokerages--including one that has been investigated for possible links to organized crime--made $6.
July 21, 2009 | Tom Petruno
Instead of the carrot-and-stick approach, New York Atty. Gen. Andrew Cuomo on Monday used two sticks in his bid to force Charles Schwab Corp. to pay off clients who bought auction-rate preferred securities from the discount brokerage. Stick No. 1: Cuomo threatened Schwab with a lawsuit if the firm didn't agree to buy back the notorious securities. Stick No. 2: Applying peer pressure, Cuomo announced that TD Ameritrade Inc.
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