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Financial Stocks Roundup: Nasdaq and Morgan Stanley Both Fall on Facebook Disappointment


Plus, Jamie Dimon and the case of the fancy potato chips.

MINYANVILLE ORIGINAL Nasdaq (NDAQ) was thoroughly embarrassed on Friday after "poor design" caused orders to go unexecuted and caused a delay in opening the most high-profile IPO of the year. The exchange's stock took a beating in the morning as it dealt with angry traders that had to wait hours to see whether their trades on Facebook's (FB) IPO had even cleared. The stock recovered later in the day, however.

As lead underwriter, Morgan Stanley (MS) had to buy shares of Facebook to keep the stock from falling below the IPO price. Morgan Stanley lost 1% today.

The broader financial sector as measured by the Financial Select Sector SPDR ETF (XLF) fluctuated between gains and losses, and gained 0.69% by the last hour of trading.

JPMorgan Chase (JPM) delivered news of another casualty in the wake of the bank's massive trading loss. CEO Jamie Dimon told investors that it will suspend its stock-repurchasing program, but it will keep its dividend in place.

Traders in London may have relieved JPMorgan's shareholders of billions of dollars, but no such profligacy is allowed in the potato chip realm.

From the FT:
Still people close to the bank are surprised that a man with such a grasp of detail could miss the warning signs. A renowned cost-cutter, Mr. Dimon recently expressed alarm that fancy potato chips in clear cellophane tied with a ribbon were available in the JPMorgan dining room. His colleague Frank Bisignano launched an investigation, triumphantly reporting back that the chips were cheaper than alternatives bought from local stores.

Twitter: @vincent_trivett
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