Exclusive: Massachusetts subpoenas Morgan Stanley for Facebook

Reuters ^ | May 22, 2012 | Staff

[library user]

EXCERPT

(Reuters) - Massachusetts Secretary of Commonwealth William Galvin has issued a subpoena to Morgan Stanley over an analyst's discussions with investors on Facebook

"The Securities Division has put out a subpoena to Morgan Stanley in connection with the analyst's discussion with certain institutional investors about the revenue prospects for Facebook," a spokesman for Galvin's office said on Tuesday.

"Morgan Stanley followed the same procedures for the Facebook offering that it follows for all IPOs. These procedures are in compliance with all applicable regulations," a Morgan Stanley spokesman wrote in an e-mailed statement.

**snip**

As of Monday afternoon, some customers of Fidelity Investments, Morgan Stanley and Charles Schwab were still waiting to see if their trades for Facebook shares were completed on Friday.

[library user]

Then Reuters reported late Monday that the consumer Internet analyst at lead underwriter Morgan Stanley cut his revenue forecasts for Facebook in the days before the offering, information that may not have reached many investors before the stock was listed.

What a mess!!!

[the invisib1e hand]

it's no crime to have a sh!tbox IPO and, unfortunately, incompetence and institutional ham-handedness is not limited to Wall Street.

What is really disturbing about this story is how Big Brother has it in for FB because of the founder's decision to avoid paying them their big tax windfall.

Mark it. They're gonna strong-arm everyone involved -- and granted, there's lots of low-hanging fruit in this comedy of errors -- but they're being singled out.

[Fido969]

I never trusted Zuckerburg.

Maybe it was the hoodie.

[jimbo123]

Obama won’t go after Zuckerberg. FB has been collecting a list of anti-Obama members on behalf of the kenyans reelection team for the past 2 years. They’ll go after morgan stanley but not Zuck.

[TheOldLady]

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[TheOldLady]

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[muir_redwoods]

Maybe Morgan Stanley can plead Cherokee.