Facebook IPO engulfed by insider trading scandal
►http://www.wsws.org/articles/2012/may2012/face-m24.shtml
Facebook IPO engulfed by insider trading scandal
By Barry Grey
24 May 2012
Multiple investigations and lawsuits have been announced following reports of deceptive practices and insider trading in connection with last Friday’s $16 billion initial public offering of Facebook stock.
On Tuesday, Reuters reported that the social networking company and its bank underwriters downgraded their forecasts for the company’s earnings shortly before they increased the number of shares and raised the offering price in advance of the IPO. Neither Facebook nor the banks publicly announced their downgrades. The major banks involved are Morgan Stanley, JPMorgan Chase, Goldman Sachs and Bank of America.