Morgan Stanley Dealing with Friday Facebook Trades, Arranges Call

Morgan Stanley (NYSE:MS) is still battling with trades from last Friday for Facebook Inc (NASDAQ:FB) customers, according to a Reuters report. On Monday, the company announced it still had unexecuted trades for retail customers and now after almost a week, it continues battling them.

It’s just one of their many problems these days.

Morgan Stanley served as the lead underwriter for the Facebook deal and now, according to an anonymous person, Morgan Stanley Smith Barney, an affiliate unit Morgan Stanley, did not receive stock market information from Nasdaq about the stock trades in a “systematic, orderly way.”

Nasdaq’s side of the story is that all orders, whether they had been executed or not, had been returned to member firms on Friday by 1:50 p.m. EDT. This is according to a trade alert distributed by Nasdaq on Monday morning.

Meanwhile, on Wednesday Morgan Stanley informed its approximately 17,200 financial advisers in an internal memo by head of U.S. Wealth Management, Andy Saperstein, that it will conduct a review on each Facebook order and refund the clients who paid too much for their shares.

Reuters noted that the issue is whether or not the trades had been executed and then confirmed at the correct price.

Morgan Stanley is also holding a conference call on Thursday at 4 p.m. EDT with its brokerage troops to discuss the Facebook Inc (NASDAQ:FB)  initial public offering including the client trade reconciliation, and other issues related to the company’s hectic public debut, reported The Wall Street Journal.

Saperstein will also be on the call.

In addition to Morgan Stanley’s problems with executed trades, Fidelity Investments has also had some issues; many clients did not have their orders processed correctly.

A Fidelity spokesman did not say to The Wall Street Journal whether the company planned to reimburse customers, but he did say, it’s “working with regulators, market makers and the Nasdaq to represent all of its customers.” Furthermore, Fidelity will “continue to do so until we are confident Nasdaq has done everything to mitigate the impact to our customers.”