NEW YORK, June 6 Former Securities and Exchange
Commission Chairman Harvey Pitt on Wednesday commended Nasdaq
OMX for its initiative to compensate clients for its
handling of Facebook Inc's bungled initial public
offering last month, but he called the steps "too limited."
The harm caused by Nasdaq's failures easily exceed the $40
million the exchange has set aside, Pitt said, responding to a
query by e-mail. He also said there does not seem to be any
rationale for how the number was arrived at or why it is fair.
Nasdaq "deserves kudos for taking the bull by the horns, and
not waiting for the SEC to finish its review," Pitt said. "But I
think the steps it has taken - while positive - are too
limited. The dollar estimates for harm caused by Nasdaq's
failures easily exceed - several times over - the $40 million it
has set aside."