Regulators to Review Morgan Stanley Facebook Allegations
Published: Tuesday, 22 May 2012 | 5:50 PM ET
The Financial Industry Regulatory Authority's chairman said on Tuesday that regulators plan to review allegations that Morgan Stanley shared negative news before Facebook's initial public offering with institutional investors.
"The allegations, if true, are a matter of regulatory concern" to FINRA and SEC, Ketchum told Reuters.
Ketchum made the remarks to Reuters in response to allegations that Morgan Stanley [MS Loading... () ], the lead underwriter on the deal, unexpectedly delivered some negative news to major clients in the run-up to Facebook's [FB Loading... () ] $16 billion IPO: The bank's consumer Internet analyst, Scott Devitt, was reducing his revenue forecasts for the company.