Switzerland's UBS bank reported Tuesday that its
net profit fell 58 per cent to 425 million Swiss francs (434 million
dollars) in the second quarter, in large part because of problems
with Facebook's initial public offering.
The largest Swiss bank had made a profit of 1.02 billion francs in the same period last year.
Its investment branch made a loss of 130 million francs between April and June, compared to a profit of 383 million francs in the second quarter of 2011.
"Due to the gross mishandling of Facebook's market debut by NASDAQ (stock exchange), we recorded a loss of 349 million francs in our US equities business as a result of our efforts to provide best execution for our clients," UBS said.
UBS ended up buying far more shares of the online social network operator than intended because confirmation of orders were delayed, causing the bank to place multiple orders.
The bank plans to take legal action against NASDAQ, the electronic trade platform in New York.
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