Feeds

Morgan Stanley cops $5m fine over Facebook IPOcalypse

Lead bank buddy settles improper conduct claims

Providing a secure and efficient Helpdesk

Morgan Stanley has been fined $5m for allegedly coaching Facebook on how to selectively release its financial information before its market debut.

The lead underwriter for Facebook's IPO has settled with the Massachusetts securities regulator, William Galvin, neither admitting or denying the allegations.

The banks that underwrote the IPO have been partially blamed for the stock's poor performance, with critics claiming that regular investors got one set of facts while friends of the underwriters got another. It is alleged that Morgan Stanley knew that Facebook's forecasted fortunes weren't that great, since the social network is struggling to make money in mobiles, but that it only told a select few.

Galvin claimed that a "senior investment banker" (referred to in the consent order here) at Morgan Stanley created "an unlevel playing field" between Wall Streeters in the know and Main Street investors. He charged that the banker had helped Facebookers release new information and told them how to talk to analysts about the figures.

The regulator also said that he will be continuing to look into issues surrounding Facebook's IPO, including the actions of other underwriters including Goldman Sachs and JP Morgan. ®

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Turnbull: NBN won't turn your town into Silicon Valley
'People have been brainwashed to believe that their world will be changed forever if they get FTTP'
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
ISPs' post-net-neutrality world is built on 'bribes' says Tim Berners-Lee
Father of the worldwide web is extremely peeved over pay-per-packet-type plans
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.