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Will NASDAQ Settle Facebook IPO Suit?

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    FBN’s Charlie Gasparino on new developments on NASDAQ’s Facebook IPO settlement.

  • Duration 4:53
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-- still leave NASDAQ looking to make an all cash deal with all of those investors who lost out on the bungled FaceBook IPO nasdaq's hand -- What was one of the biggest IPOs in history has caused major delays and confusion for many investors who couldn't get.

-- -- on their trades for hours Charlie Gasparino has the latest stuff.

We should point out that this is in draft form right now with the SEC nasdaq's compensation plan it's -- second draft -- you know something's coming soon with sources telling us is that NASDAQ.

Intends and we at the -- -- because this draft you know honestly you never know what's gonna happen.

But they intend to put this out next week presumably before earnings they announce earnings I guess for the second quarter -- or in the second yeah her current court right.

It was his right.

Yes yes Betancourt -- than just one of which -- not isn't -- earnings for the second quarter.

I'm Wednesday presume these plan comes out before then he is kind of what we -- was -- least on the table discussing.

And what I'm hearing from sources likely to be the plan but like I said.

I I don't believe -- I -- it OK number one.

They want to release -- next week presumably before earnings number two they're eyeing an all cash deal now remember what the initial put on initially put on the food on the table is this.

They'll pay up to forty million dollars thirteen million in cash 27 million for people that were harmed -- that if FaceBook IPO.

They would given sort of treating credits the market would -- -- their clients like Bob you Tom Joyce over -- said not enough so they went back to the drawing board.

And we understand that number one this is an all cash deal at least that's what they're talking about.

And number two it's going to be more than the forty million how much more than forty million this is where it gets in the realm of speculation from people that are that are close to the situation.

You know I hear could be as much as a 100 1000000 but I am just ten until everybody I'm I'm I'm hedging this for one reason one regional I don't have -- in my hand.

NASDAQ is not come and -- -- to -- SEC is not commenting but will we do know is that a second drafted -- plan is clearly in the works and they really wanna get this out next week.

And from what I understand this is an all cash deal but quite -- in the trading credit.

Did you see whenever elect elect believe I mean that we got an -- -- -- -- first off forty million wasn't enough.

Number one everybody said -- Tom Joyce himself I think lost 37 million overnight securities I think so he wouldn't even compensate one even if you take a haircut of what he says he's -- And number two what is trading credit I mean that it's like out what I like it's like you know.

You know.

It's it's like let's treat what we'll give you some cut -- fees and you could trade war through the stock exchange that screwed everything up.

And they get market share so I hope they don't value I don't think that the SEC want to go there.

So we're clearly in the second draft I would only say this I don't have -- -- -- its tentative it's in draft form.

Before I understand these -- essential outlines of it.

By the way it is the third quarter and -- the second quarter earnings reporting season bright bright -- and we -- -- -- And it -- okay hundred million about a number of that pretty street which would yeah exactly.

Com.

I think so I mean as a think even if it's obviously I mean people think the losses could be up to like 400 million a year 200 foreign -- like.

Everybody has -- take like a haircut on this thing nasdaq's gonna have to move up.

They're gonna have to compromise.

And it's one of those round numbers that seeing people say OK a hundred million dollars.

They paid you know let's move on you know an insane.

But you know here's the one caveat again I -- -- -- Bob Greifeld -- nasdaq's gonna come out Wednesday.

He has been very hesitant to give much on this you know he's been basically east from the beginning saying.

You know I'd I'm giving -- -- the forty million dollars was a generous offer I mean even -- people thought it was insane.

If he does give a lot of this is a huge concession on his part that means that Bob Wright field knows that his future's in jeopardy.

If he doesn't sort of quell this thing and it is all coming let's face of market NASDAQ.

You know zone is that is people who trade through it a lot of the trade to have people that's -- that's 37 million dollar number that permit within Knight securities I believe so I don't think can't -- any -- -- -- came up with that number -- others finite I -- I don't think Tom -- made it up.

No I don't and I have to try and here's the thing when you tabulated -- I'd -- -- -- -- Country to got a pen and paper maybe he's in computer.

I have no idea I Mena and if you look at how -- it mean they they would remember what they do they're kind of wholesale right they send trades to the NASDAQ for their customers and for other customers.

If those trades are not.

No good you know they have to compensate people that got screwed up and that's maybe the number that came out of their pocket.

We should point out that Tom Joyce made that calculation in the in earnings -- Generally you don't do that you really believe it's a real number because you can be you know your your.

You can meet up at heavily sanctioned by the SEC for putting chemicals because that ever receive 800 million isn't close to enough that's why that's why I'm wondering well you know we cannot I -- I will say this you might be right drawing -- strong 200 on the table on -- what are your -- -- so my sources.

It was actually think a couple fairly good sources I do not have that confirmed as being the number but.

I -- it's more than forty.

OK Charlie -- -- -- fantastic thank you I'll.

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