This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Five Dumbest Things on Wall Street This Week: June 8

Stocks in this article: FB JCP AAPL TPX NDAQ JPM GS NYX

1. Nasdaq's Comic Relief

Enough with the jokes Nasdaq (NDAQ)! Stop splitting our sides and be serious for a second. Now tell us: Is that really your final Facebook compensation offer?

The Nasdaq finally emerged from its shelter Wednesday and announced it will offer cash and rebates totaling $40 million over the next six months to compensate clients burned by its bungling of Facebook's bomb of an IPO. Once it gets the sign-off from the Securities and Exchange Commission, Nasdaq plans to pay $13.7 million in cash to affected member firms and offer the remainder to members in the form of credits to reduce trading costs.

Let's start with the cash reparations first, because that's certainly the part of the deal that Facebook's biggest market makers -- UBS (UBS), Citigroup (C), Knight Capital (KCG) and Citadel -- regard as the most hilarious. The foursome contends it lost upward of $115 million because of the technical problems during the IPO, so Nasdaq's puny peace offering simply won't cut it.

Knight Capital was the first responder to guffaw at Nasdaq's plan, saying it "does not come close to covering reported losses" and is "simply unacceptable".

Okay, fine. Maybe they weren't guffawing, but we know they found the idea laughable.

And while NYSE Euronext (NYX), the operator of the New York Stock Exchange, was not involved in the offering, it could not help but get in on the refund joke, claiming the plan forces "the industry to subsidize Nasdaq's missteps and would establish a harmful precedent that could have far reaching implications for the markets, investors and the public interest."

Well, that's probably stretching things a bit too far, but you know if anybody is getting a belly laugh from seeing Nasdaq CEO Bob Greifeld squirm, it's those guys. Although it may be hard to remember now, there was a time not too long ago when you could not wipe the silly grin from Greifeld's now grim face after he beat out the NYSE for what was once a trophy listing.

Now, with its stock down more than 30% from its offering price, Facebook has undoubtedly turned into the booby prize. And while it's understandable for Nasdaq's rival to smile over the sudden change in circumstances, for investors caught up in this unending sideshow, the losses are clearly no laughing matter.

-- Written by Gregg Greenberg in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
5 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs