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Demeter

(85,373 posts)
56. Facebook 11% Drop Means Morgan Stanley Gets Blame
Tue May 22, 2012, 07:48 AM
May 2012
http://www.bloomberg.com/news/2012-05-22/facebook-11-drop-means-morgan-stanley-gets-blame-for-flop-tech.html

Let the Facebook Inc. (FB) finger-pointing begin.

After one of the most anticipated initial public offerings in history, Facebook’s 11 percent drop yesterday prompted investors to fault everything from Morgan Stanley’s role as lead underwriter, to the company’s greed and the Nasdaq Stock Market.

“It was like the gang that couldn’t shoot straight,” said Michael Mullaney, who helps manage $9.5 billion as chief investment officer at Fiduciary Trust in Boston. He said he placed Facebook orders for clients. “The underwriters mis- estimated what actual demand was, and there was pure execution failure coming out of the Nasdaq.”

Taking the most heat is Morgan Stanley, said Mullaney. The bank was lead underwriter among the 33 firms Facebook hired to manage the $16 billion sale of stock. The bank decided with Facebook executives to boost the size and price days before the May 17 IPO, ignoring advice from some co-managers, said people with knowledge of the matter, who declined to be identified because the process was private. Morgan Stanley (MS) talked with few of its fellow underwriters aside from JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS) throughout the IPO, one person said.

“They overplayed the enthusiasm and probably just misread the atmosphere of the marketplace,” said Keith Wirtz, who oversees $15 billion as chief investment officer at Fifth Third Asset Management in Cincinnati and bought some stock in the IPO. Facebook increased the number of shares being sold in the IPO by 25 percent last week to 421.2 million and raised its asking price to a range of $34 to $38 from $28 to $35. Had Facebook kept the original terms, investors may have had a better shot at a first-day pop. Instead, the stock was little changed in its debut because Morgan Stanley intervened to prevent it from falling below the IPO price. The shares closed at $34.03 yesterday...

MORE WAILING AND GNASHING OF TEETH AT LINK
And there off... westerebus May 2012 #1
As in they have taken the evening off... westerebus May 2012 #2
ayuh Po_d Mainiac May 2012 #3
Well, I did try to Demeter May 2012 #4
A spokesperson for the white house made the following statement: westerebus May 2012 #7
What are you talking about? Demeter May 2012 #11
This just in. westerebus May 2012 #16
Driving distance? Po_d Mainiac May 2012 #17
This shits getting weird. Fuddnik May 2012 #19
It's only weird because you're Tansy_Gold May 2012 #20
Okay, hey, wait a minute! Tansy_Gold May 2012 #18
You people are getting silly Demeter May 2012 #21
Yes. And your point is. . . . . ? Tansy_Gold May 2012 #61
There is no point. Fuddnik May 2012 #71
Other than that of 'no return' Po_d Mainiac May 2012 #75
I was there last night (in more ways than one) Demeter May 2012 #80
Early reporting continues at a later time. westerebus May 2012 #81
I get it! You are Auditioning for Liz Smith's old job! Demeter May 2012 #85
Excuse me, but we ARE the greater public! Tansy_Gold May 2012 #88
Those are Labrador Mixes, Not Poodles! Demeter May 2012 #97
There is another cell in the Sunshine State Tansy_Gold May 2012 #99
I'm in the process of fulfilling a no-bid contract for the RNC. Fuddnik May 2012 #107
The 'kitchen project' is still a work in progress Po_d Mainiac May 2012 #93
I do believe we've just turned the "corner". Ghost Dog May 2012 #106
Let me see if I remember kickysnana May 2012 #91
32? They are prodigies! Demeter May 2012 #98
That is so ... AnneD May 2012 #114
Ian Gardiner | National People's Action Demeter May 2012 #5
Entitlement Reform For the Entitled By EZEKIEL J. EMANUEL (SOCIAL SECURITY!) Demeter May 2012 #6
Democrats and Bain By Glenn Greenwald Demeter May 2012 #8
How the Ultra-Rich Betray America Demeter May 2012 #9
Economic Update: Government Bailouts, Corporate Takeovers and Unemployment Demeter May 2012 #10
Oh, What a Terrible Dream I Had! Demeter May 2012 #12
Mortgage and Securitization Fraud: Where Is the Task Force? By Dean Baker Demeter May 2012 #13
Euro area bonds to be discussed at informal EU summit-officials Demeter May 2012 #14
OECD joins call for eurozone bonds Demeter May 2012 #24
France to push for eurozone bonds Demeter May 2012 #34
Secret €100bn aid props up Greek banks Demeter May 2012 #35
Many Lawmakers Personally Invested in JPMorgan Chase By Russ Choma Demeter May 2012 #15
Double trouble at JP Morgan: trader's losses could exceed $7bn girl gone mad May 2012 #25
With their stock at bargain prices, JPMorgan Should Buy Itself Demeter May 2012 #39
Two answers? Po_d Mainiac May 2012 #64
AMAZING REPORTING! Demeter May 2012 #58
JPMorgan Counterparty Platt Says Bank’s Loss May Widen Demeter May 2012 #59
lions and tigers and bears, oh my. dixiegrrrrl May 2012 #150
The Wizard of Oz bread_and_roses May 2012 #152
with a surfeit of flying monkeys. dixiegrrrrl May 2012 #153
BANKS MUST BE NATIONALIZED Demeter May 2012 #22
Recovery or Collapse? Bet on Collapse By Paul Craig Roberts Demeter May 2012 #23
BUT IT'S NOT REAL MONEY Tansy_Gold May 2012 #144
I don't think he's talking about money as money Demeter May 2012 #145
What he implies Tansy_Gold May 2012 #146
I agree. Pace. Pax. Post the next day, please! Demeter May 2012 #147
LOL Tansy_Gold May 2012 #149
Barclays to sell £3.8bn BlackRock stake Demeter May 2012 #26
EU warns Google to change or face fines Demeter May 2012 #27
morning! i haz the cloudy weather xchrom May 2012 #28
Same in Ohio, we could use some rain. DemReadingDU May 2012 #37
Ditto Demeter May 2012 #44
Hot, Hot, Hot, Fuddnik May 2012 #65
... xchrom May 2012 #67
That's just what I was thinking of! Fuddnik May 2012 #68
Fudd... AnneD May 2012 #119
Welcome back Kiddo! Fuddnik May 2012 #136
Thanks.... AnneD May 2012 #151
I would think drinking alcohol was contraindicated Demeter May 2012 #74
Eurozone warned 'severe recession' looming xchrom May 2012 #29
Nato maps out handover to Afghan forces Demeter May 2012 #30
SOMEBODY ASKED ABOUT TED? Why TED Is a Massive, Money-Soaked Orgy of Self-Congratulatory Futurism Demeter May 2012 #31
thanks - was me asking bread_and_roses May 2012 #72
Glad to be of service Demeter May 2012 #86
Nothing is at it first appears DemReadingDU May 2012 #115
FITCH DOWNGRADES JAPAN xchrom May 2012 #32
Youth unemployment to remain high until 2016 Demeter May 2012 #33
GM wheat trial survives attack Demeter May 2012 #36
AIN'T IT THE TRUTH? Demeter May 2012 #38
HA! xchrom May 2012 #40
Why Greeks Will Vote for Tsipras xchrom May 2012 #41
In Greek Humanitarian Crisis, It Will Be Leftists Or Neo-Nazis Matt Stoller Demeter May 2012 #66
Philip Pilkington: Why the Germans Probably Won’t Allow Greece to Exit the Euro Demeter May 2012 #87
A NIFTY CONCLUSION Demeter May 2012 #100
Marshall Auerback: Today Germany Is the Big Loser, Not Greece READ THIS! Demeter May 2012 #102
Maybe THIS.... AnneD May 2012 #124
The Super "Connected" 1% CEO: The Incredible Tale of Billions of Dollars of Failure Demeter May 2012 #42
ECB Increasingly Concerned Over Aid to Greek Banks xchrom May 2012 #43
Secret Central Bank Aid Props Up Greek Banks Demeter May 2012 #57
+1 xchrom May 2012 #62
More Workers Killed on Job in a Year Than 9 Years of Iraq War; One Case Shows How Demeter May 2012 #45
"Education is Worth It": Students Take On Sallie Mae CEO Albert Lord at Shareholder Meeting Demeter May 2012 #46
There Is a Way! Beyond the Big, Bad Corporation Demeter May 2012 #47
Rivals Go to Lunch on J.P. Morgan's Losses Demeter May 2012 #48
Alcalá to collect tax on Catholic Church properties xchrom May 2012 #49
Go for It! Demeter May 2012 #52
i figured it would be the french or the spanish -- xchrom May 2012 #53
In Spain, Jobless Find a Refuge Off the Books TODAY'S MUST READ! HERE'S YOUR FUTURE Demeter May 2012 #63
if the only real choice you leave them is tax avoidance then people will avoid the taxes. xchrom May 2012 #78
Ahem. Cough, cough. Ghost Dog May 2012 #108
Oh yes. I realize. I just try to understand the 'under the table' xchrom May 2012 #109
Jean Pisani-Ferry - Mutually assured destruction in the eurozone Demeter May 2012 #50
Is the sun setting on Spain as a brand? xchrom May 2012 #51
... One of the two Spains... Ghost Dog May 2012 #111
Insight: Morgan Stanley cut Facebook estimates just before IPO Demeter May 2012 #54
Facebook 11% Drop Means Morgan Stanley Gets Blame Demeter May 2012 #56
Facebook is emblematic of our corrupted system just1voice May 2012 #130
And Demeter May 2012 #132
Exclusive: Massachusetts subpoenas Morgan Stanley for Facebook Eugene May 2012 #148
How Change Happens By DAVID BROOKS (OUTSTANDING DELUSIONAL SPASM) Demeter May 2012 #55
Once again, David Brooks proves, without a doubt. Fuddnik May 2012 #69
"bare-knuckled corporate executives" - !!! - do we swoon? bread_and_roses May 2012 #70
Here's a link Po_d Mainiac May 2012 #76
Good thing you got that edit in. . . . . Tansy_Gold May 2012 #138
Europe is driving full-tilt, foot on the pedal, into a brick wall Demeter May 2012 #60
Sounds like much of UK, actually. Ghost Dog May 2012 #112
Terrifc Tuesday! US Futures perking up Roland99 May 2012 #73
Now not so perky Roland99 May 2012 #82
Living heads--HORRORS OF THE GUILLOTINE--YOU HAVE BEEN WARNED! Demeter May 2012 #77
Many thanks, Demeter. Ghost Dog May 2012 #113
Houghton Mifflin files for bankruptcy Tansy_Gold May 2012 #79
Walked by their building in Boston a couple of weeks ago. Roland99 May 2012 #83
Too bad it wsn't McGraw-Hill, the BFEE Outlet. Demeter May 2012 #84
Spurring growth will be a huge task xchrom May 2012 #89
That basic economic fact has been forgotten here, too Demeter May 2012 #103
Spain teachers, students strike over spending cuts xchrom May 2012 #90
BOMBSHELL: Facebook Bankers Secretly Cut Forecasts For Company In Middle Of IPO Roadshow xchrom May 2012 #92
Guess I'd better call for Tansy_Gold May 2012 #94
MON DIEU! shocked! shocked! xchrom May 2012 #95
Aren't we all, X Tansy_Gold May 2012 #96
Call for MIB Demeter May 2012 #104
Today's Economic Reports (April Housing Sales) Bang! Zoom! >>>> Roland99 May 2012 #101
That should be good for 100 points Demeter May 2012 #105
Morning Marketeers...... AnneD May 2012 #110
Maybe she'd like to meet my old schoolfriend Angus Balbernie, choreographer: Ghost Dog May 2012 #116
I will forward the link.... AnneD May 2012 #122
Germany, France draw battle lines over common bonds Ghost Dog May 2012 #117
Wenzou’s debt deflation CHINA SPECULATION Demeter May 2012 #118
Flawed Dimon Demeter May 2012 #120
Standing up to Jamie Dimon: Is it SAFE? Gerald Epstein Demeter May 2012 #121
NOW YVES, TELL US WHAT YOU REALLY THINK Demeter May 2012 #123
Did the White House Direct the Police Crackdown on Occupy? by DAVE LINDORFF Demeter May 2012 #125
Obama has assets in JPMorgan accounts: White House Demeter May 2012 #126
KC Man Sues Foreclosure Error Claim: JPMorgan Chase Changed Locks, Seized New Owner's Property Demeter May 2012 #128
Straight face test fail Po_d Mainiac May 2012 #127
Facebook drops again as SEC calls for review Eugene May 2012 #129
there aren't enough :rofl: s to cover it. n/t Tansy_Gold May 2012 #131
Do they want a do-over? Demeter May 2012 #134
100pt drop this hour. EURUSD plunging on talk of Greece exit from Euro Roland99 May 2012 #133
And I almost missed it! Demeter May 2012 #135
some mediocre faerie efforts at the end but looks like a negative/flat day at the close Roland99 May 2012 #137
Definitely some pumping going at the end. Fuddnik May 2012 #140
Dude...That cracked me up Po_d Mainiac May 2012 #141
Dell dropping 6%...no,7%...no 8% immediately after-hours on earnings report Roland99 May 2012 #139
And a good time was had by all Demeter May 2012 #142
Dell down 12% now! And the State of Mass is going after Morgan Stanley for FB IPO Roland99 May 2012 #143
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