Dear UBS,
I hate to say I told you so (and you should have read my blog), but Facebook was overvalued from the beginning. It didn’t have an adequate long-term way to generate revenue; Mark Zuckerberg held too much power; users were moving to mobile devices with no adequate way of capturing ads; its initial share price was overvalued.
And now you want to blame Nasdaq because you bought too many shares? I’m sorry: I have never taken an Economics class in my life, and I knew initial IPO was on the road to a gigantic failure. I’m sorry that there were technical glitches, but isn’t part of your portfolio training for “risk management”? And don’t you have to take into consideration risks? Read the paper. Try harder. Don’t blame others for your mistakes. Don’t go along with the herd. Advise your clients better. Be an adult, not a child. Take responsibility for your mistakes. Acts have consequences.
The Swiss banking giant, in its earnings release on Tuesday, accused Nasdaq of “gross mishandling” of Facebook’s May 18 listing. It said it would begin legal proceedings to recoup all of its losses related to the problems, totaling $356 million. The figure dwarfs the $62 million Nasdaq has set aside to cover losses for brokers and investors due to its mishaps with Facebook’s deal.
