Morgan Stanley cops $5m fine over Facebook IPOcalypse
Lead bank buddy settles improper conduct claims
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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. ®
COMMENTS
$5 Million ?
Chump-change for a bank
I bet they're all still laughing.
Impunity - Complete Impunity
We are supposed to live in a democratic and freeworld, well I say bollocks.
These bastards move about their business with almost complete impunity. This is a company that deals in Billions of dollars ( Yes I know that this is not their benefit), $5 Million won't make a ripple in what they are capable of earning.
They manipulate people, figures, business in order to ensure their gains and the money they play with is not theirs to begin with so they can't even lose.
And yet the continue to steal, contrive and cheat whomever they please with complete impunity.. Is this the freeworld that we are supposed to enjoy. No, it's not capitilism either, making money is different from stealing money.
Re: $5 Million ?
What's that?... US gov is running around "fining" foreign companies BEEEEELIONS on much more spurious grounds, but fines good ol' US of A banks change so small they wouldn't bother to bend to pick it up if they'd dropped it in the street.
So what's new? It's called "protectionism" and they've been at it flagrantly for 200 years. Keep up will you!
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