The SEC's Play-by-Play of Nasdaq's Facebook Disaster

Nasdaq OMX Group agreed earlier today to pay $10 million to settle charges over the spectacularly botched Facebook IPO last May.

In striking the deal, the exchange did not admit or deny allegations. But the U.S. Securities and Exchange Commission was kind enough to provide its own version of events, spelling out “a series of ill-fated decisions” that make for a fascinating read.

The most interesting part: At one point in the fray, Nasdaq allegedly made $10.8 million shorting Facebook shares. Which raises the question, couldn’t the SEC at least have wrung another $800,000 out of them?

Read more... Here’s how things panned out May 18, 2012