As the controversy around the Facebook IPO grows, regulators say they will look into it; Moody’s lifts Ford’s credit rating; Dell shares slide after earning; Yahoo charts a new direction. Read More
On May 10, JPMorgan Chase reported a surprise $2 billion loss on a derivatives trade. Estimates of the loss have been upped to $3 billion. A class-action suit regarding the trade has been filed by the law firm Robbins Geller Rudman & Dowd. We spoke with Sam Rudman, a former attorney with the SEC Enforcement Division and a founding member of Robbins Geller, about the case. Read More
A few years ago, investor expectations of bank earnings were said to be “at rock bottom.” Bank analysts and journalists explained that the banks would report a “kitchen sink” quarter, in which they would take heavy losses and start “laying the groundwork for a strong recovery." That was 2007. Read More
While trading glitches at the Nasdaq on the company’s opening day are widely seen as contributing to the sell-off, the stock’s lingering shortcomings are raising questions about whether or not lead underwriter Morgan Stanley (along with other banks) misgauged the demand, and the price of the deal. Read More
“The SEC has to look at this – it’s bizarre," says Henry Blodget on Halftime. "How can you have an estimate cut in the middle of a road show and not have that communicated widely?” Read More
In the run-up to Facebook's spacer $16 billion IPO, Morgan Stanley, the lead underwriter on the deal, unexpectedly delivered some negative news to major clients: The bank's consumer Internet analyst, Scott Devitt, reduced his revenue forecasts for the company. Read More
Stocks are rebounding from an oversold condition, and the debate among traders is whether it’s just a quick relief rally or the start of a new move higher. Read More