by Giles Cadman – Venulum
In a forceful article on The Street Jim Cramer is uncompromising in calling for the SEC to investigate allegations about Morgan Stanley and the Facebook IPO.
The idea that big clients were getting the skinny that estimates were too high, something that would justify immediately cancelling orders or dumping stock into the public frenzy, is just plain outrageous. Anyone who made such a call knew that was selective disclosure, a clear violation of SEC rules. Anyone who acted on it has to be subpoenaed immediately by the SEC to find out what happened. The repercussions should and must be severe, as such a number cut on the eve of the deal is something everyone had to know — not just the big boys.
I do not know the ins and outs of the deal, but if this is true the SEC should be investigating.
All of this stinks, of course, but none of it stinks more than the idea that the Morgan Stanley analyst cut numbers at the last minute and only the largest clients were informed.
In all my years on Wall Street this is the most outrageous and egregious deal I have ever seen.
Shameful..
And now someone has to pay.
