Facebook (FB) Compensation Crosses Line

This morning, the Nasdaq OMX Group (NASDAQ:NDAQ) announced a $40 million plan to compensate investors who lost out in its disastrous handling of the Facebook Inc (NASDAQ:FB) IPO. The package was announced earlier today, and has not been well received by people both inside the trading world and commentators in general.

The deal would see most of the money, $27 million, go to larger investors who were hit by the IPO in the form of reduced transaction fees. That sum has been the subject of most of the discussion this morning. There has been speculation that the deal is illegal and will not be allowed...