Tech content trusted by users in North America and around the world
5,674 Reviews & Articles | 36,066 News Posts
Weekly Giveaway: Fractal Design Arc Cases Contest (Global Entry!)

Morgan Stanley fined $5 million by Massachusetts for Facebook IPO

Morgan Stanley fined $5 million over claims they coached Facebook in how to selectively release info

| Business, Financial & Legal News | Posted: Dec 18, 2012 1:02 am

It looks like Massachusetts is the first to take action over Facebook's seemingly botched initial public offering. The state has fined Morgan Stanley $5 million over the IPO of Facebook, reportedly for violating securities laws that govern how investment research can be distributed.


TweakTown image news/2/7/27333_1_morgan_stanley_fined_5_million_by_massachusetts_for_facebook_ipo.jpg


One of Morgan Stanley's top bankers reportedly improperly coached Facebook on methods to disclose financial information selectively. This, according to William Galvin, continues the trend of creating "an unlevel playing field" between Wall Street and Main Street.


A $5 million fine really is quite tiny in the overall scheme of things. Morgan Stanley will hardly notice the fine, and it's a tiny amount compared to the valuation and money brought in by Facebook's IPO.


"The conduct at Morgan Stanley was more egregious," he said, in reference to a similar charge against Citigroup in late October. "With it we will get their attention and begin to take steps in restoring some confidence for retail investors to invest."


This is just the first of many likely cases against Facebook and the underwriting banks.


Related Tags

Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.

Do you get our news RSS feed? Get It!

Post a Comment about this news

Latest Tech News Posts

View More News Posts

Latest Downloads

View More Latest Downloads

TweakTown Web Poll

Question: Did EA kill the Battlefield franchise with the terrible BF4 issues?

Yes, Battlefield is doomed

No, Battlefield will live on strong

I'm not sure, but I know EA needs to improve its game

or View the Results

View More Polls

Forum Activity

View More Forum Posts

Press Releases

View More Press Releases
Get TweakTown updates via Facebook!
Just click the "Like" button below