Regulators looking into Morgan Stanley role in Facebook IPO

[deminks]

Source: Reuters

NEW YORK (Reuters) - As regulators scrutinize Facebook's problem-plagued stock market debut, they may have to confront areas of securities law that do not always clearly spell out what industry analysts are allowed to tell clients about companies on the verge of going public.

Facebook and the Wall Street banks that underwrote its $16 billion initial public offering are facing questions about how and why stock analysts decided to cut their financial forecasts on the company ahead of the IPO.

An Internet analyst at lead underwriter Morgan Stanley told clients days before the offering that he had reduced his revenue projections - information that some other investors may not have received, Reuters reported Tuesday.

JPMorgan Chase and Goldman Sachs, which were underwriters on the deal as well, also revised their estimates during Facebook's IPO road show, according to sources familiar with the situation.


Read more: http://www.chicagotribune.com/news/nationworld/sns-rt-us-facebook-regulationsbre84m0l5-20120523,0,5603661.story

[SDjack]

1. The stock market is an insider game based on sticking fools with the losses. If you are

playing in the market and you don't know who the fools are, you are one of them.

[Atman]

2. The house always wins.

Even when the house loses, it has the government to bail them out. You try that at any casino on earth...go to the boss after you've lost it all and say "Sorry, it was all a big mistake." They'll either laugh at you or beat your ass.

.

[TrollBuster9090]

4. The House always wins. Good analogy.

And speaking of Houses...I can't believe that it was only a couple of months ago that Congress voted to pass a law making it illegal for Congressmen to use the mountains of insider information they get to make money on the stock market. It's a license to print money, and we WONDER why Congress has so many crooks in it. The fact that they didn't see anything WRONG with this for over two hundred years should tell you something about their character right off the bat.

[liberal N proud]

3. Morgan Stanley needs to be broken up.

[KurtNYC]

5. The best companies in the USA are privately held

Facebook's IPO should prove to all retail investors that the game is rigged. If you sit down at a poker game and the other guys have 10 times or 10,000 times more money than you do, you are going to lose.

The Facebook IPO at $38 was strictly for suckers IMHO. It closed at $31 Tuesday and is still falling. The MSM saying that the company is/was valued at $100 bil or Zuck at $20 bil is just fraud -- they know the truth. This was an easy short call.

But for those who sold short on Friday ($41 to $38.05) you had to cover yesterday. 25% profit in 3 days! Cha-ching!

[Brooklyn Dame]

6. Once again, the case is made for MORE and enforceable regulation.

This is all a game to them -- and the game is rigged. Tax evasion, insider information...and that's just for starters. And yet we have politicians who act as though Wall Street should be allowed to police itself.

http://borderlessnewsandviews.com/2012/05/keeping-a-little-known-estate-tax-avoidance-strategy-under-the-hoodie/

http://borderlessnewsandviews.com/2012/05/good-grief-mitt-what-planet-are-you-from/