Quoted: Roger McNamee blasts Wall Street over Facebook IPO

“It exposed in my mind the extreme corruption in the capital formation process and really in Wall Street itself. Nasdaq’s behavior on this, in my mind, borders on criminal. I think Morgan Stanley’s behavior borders on criminal.”

Roger McNamee, co-founder of Elevation Partners, talks Thursday on Bloomberg Television’s “Money Moves” about Facebook‘s botched IPO. He also said venture capitalists have “a lot of explaining to do because they influenced increasing the size of the deal and increasing the price.” Facebook’s initial trading price was $38; the shares are mostly flat at about $30.80 as of this post. (By the way, Elevation is a Facebook investor. The firm reportedly bought Facebook stock through the secondary markets before the company went public.) When the world’s largest social network went public in May, first-day trading on the Nasdaq was delayed because of technical problems. Morgan Stanley, the IPO’s lead underwriter, was accused of, well, undersharing — the government is investigating whether it shared updated information about Facebook’s weaker financial outlook only with certain institutional investors. Besides McNamee, some individual investors feel cheated. (See Quoted: Another unhappy Facebook IPO customer.) Facebook, Morgan Stanley and others involved in the IPO are facing lawsuits.


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  • andrew

    Boo hoo! Facebook got maximum dollars from investments and we personally did not get our sure thing!

  • Alan

    I was going to say something similar to what Andrew said. As far as I’m concerned it was a brilliant IPO. Facebook didn’t leave anything on the table for Wall Street, and maximized what they got out of the IPO. Boo hoo is right!!

  • sd

    Poor widdle Woger! Woger forget stock prices can go down as well as up? Capitalism 101, big boy!

    Maybe the Fb IPO *was* bungled, but the whining about it is all out of proportion considering that 99.9% of us just suck it up with *our* investments.