Topic: Securities Services

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Facebook IPO: Six key dates in its debacle

Facebook's first week as a publicly traded company will go down as a terribly botched corporate launch, perhaps one of the worst in recent history for such a highly visible entity. Eight days ago, it was the tech world's most highly anticipated initial public offering in eight years. Now, the social media company faces mounting legal woes and serves as an embarrassing example of how not to run an IPO. Despite rising insider pessimism about its growth prospects, Facebook kept boosting its asking price and the number of shares it would sell. The result: billions of dollars in losses; investigations by two congressional committees, the Securities and Exchange Commission (SEC), an industry watchdog, and the state of Massachusetts; at least 13 class-action lawsuits; and thousands of resentful shareholders who days later still were unsure how many Facebook shares they had or at what price. Here are six key dates in Facebook's unfolding IPO disaster.
Osama bin Laden papers: top 5 revelations

A new trove of letters seized during the Osama bin Laden raid paint an intimate picture of the inner workings and struggles of Al Qaeda, from its dabbling in the stock market to practices that would make any Mafia don proud.
Top 4 tips to keep your broker honest

Maybe individual investors can’t fix the broad regulatory breakdown that has allowed financial frauds to occur, like dodgy mortgage-backed securities and Bernie Madoff’s pyramid scheme. But they can take steps to protect themselves against unscrupulous financial advisers. Knowledge is the best weapon. The more investors know, the less likely they are to be taken advantage of by a dishonest broker. Here are four ways you can ensure your broker is following the rules:
Photos of the Day: Photos of the day 02/09
Six big achievements of a surprisingly 'do something' Congress

The 111th Congress, which adjourned Wednesday, is one of the most productive in US history, its 13 percent approval rating notwithstanding.

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Facebook stock drops below $29 (+video)

Facebook stock falls 9.6 percent to close at $28.84. In its first seven days of trading, Facebook stock has lost nearly a quarter of its value.
The Reformed Broker
SEC won't take action against Lehman Brothers

The SEC will likely not seek action against the Lehman for the events that led up to the firm's massive bankruptcy in 2008.
Facebook IPO: Six key dates in its debacle

Facebook's first week as a publicly traded company will go down as a terribly botched corporate launch, perhaps one of the worst in recent history for such a highly visible entity. Eight days ago, it was the tech world's most highly anticipated initial public offering in eight years. Now, the social media company faces mounting legal woes and serves as an embarrassing example of how not to run an IPO. Despite rising insider pessimism about its growth prospects, Facebook kept boosting its asking price and the number of shares it would sell. The result: billions of dollars in losses; investigations by two congressional committees, the Securities and Exchange Commission (SEC), an industry watchdog, and the state of Massachusetts; at least 13 class-action lawsuits; and thousands of resentful shareholders who days later still were unsure how many Facebook shares they had or at what price. Here are six key dates in Facebook's unfolding IPO disaster.
Robert Reich
Obama should attack what Bain and JPMorgan have in common

Rather than lobbing generalized  attacks at Mitt Romney and American business, Obama should attack a particular kind of capitalism that Romney and JPMorgan both practice: using other peoples’ money to make big bets which, if they go wrong, can wreak havoc on the economy.
Facebook struggles as lawsuits loom

The stock climbed a dollar on Wednesday, but it is still 16 percent below its IPO price last Friday.
Facebook stock still slipping as investors grow wary

The company has slipped to $91 billion in total valuation from its opening at $104 billion.
The Daily Reckoning
Leave Facebook's Eduardo Saverin alone

Eduardo Saverin's timely renunciation of his American citizenship is no reason to keep him out of the US. People should be able to move where they want, when they want, for any reason.
Facebook stock falling again. What went wrong?

Facebook stock fell 7 percent in early trading Tuesday, after an 11 percent fall Monday. In challenging market environment, selling IPO of Facebook stock is like 'trying to get a jumbo jet to take off in turbulent weather.'
Stocks climb, breaking losing streak

Apple stock soared, helping propel major US stock indexes to gains after a solid week of losses. The Dow Jones rose 135 points to close at 12504.
Facebook stock falls 11 percent in second trading day

Facebook shares close down $4.20 in Monday trading. Facebook stock dropped so much Monday morning that 'circuit breakers' kicked in to restrict sell orders.
The Reformed Broker
Will the Facebook IPO save online brokers?

Yet another group may benefit greatly from the Facebook IPO: brokerage firms.
JP Morgan chief apologizes for $2 billion loss

Jamie Dimon, the CEO of the bank, told shareholders that the loss should have never happened.
JPMorgan Chase's Dimon survives pay, chairmanship votes (+video)

JPMorgan Chase shareholders voted Tuesday at the bank's annual meeting to keep CEO Jamie Dimon in his role as chairman of the board, in addition to his pay package.
Ina Drew retiring after JPMorgan losses. Will she get $14.7 million?

Ina Drew, at the center of JPMorgan's stunning loss, was among its highest-paid executives. Proxy statement says Ina Drew would be entitled to nearly $14.7 million if she met 'full-career eligibility.'
Robert Reich
JPMorgan collapse: Can we regulate Wall Street now?

JPMorgan Chase & Co., the nation’s largest bank, announced Thursday that it had lost $2 billion in risky trades over the past six weeks. It adds fuel to the argument that Wall Street needs to be more heavily regulated.
JP Morgan $2 billion loss stirs memories of 2008 crisis (+video)

JP Morgan CEO Jamie Dimon dubs losses 'egregious,' but market analysts expect that, this time, the damage would be contained and not spread to the entire financial system.
Osama bin Laden papers: top 5 revelations

A new trove of letters seized during the Osama bin Laden raid paint an intimate picture of the inner workings and struggles of Al Qaeda, from its dabbling in the stock market to practices that would make any Mafia don proud.
Investment banking: Ex-Goldman critic to write book?

Investment banking tell all? Greg Smith, who tendered a scathing resignation letter to investment banking giant Goldman Sachs, is reportedly looking for a book deal.
Goldman Sachs culture 'toxic'? Letter confirms suspicions about Wall Street.

Polls show that Americans hold a very low opinion of Wall Street, and a damning public letter of resignation from a Goldman Sachs executive could only amplify that perception.
The Reformed Broker
Big brokerage firms aren't paying attention to their clients

As financial firms become bigger and bigger, they are focused on corporate profitability over the satisfaction of their brokers and clients.
The Reformed Broker
The end of the small brokerage firm

The era of the small brokerage firm is gradually coming to a close as several of the most well-regarded boutique brokers call it quits.
The Daily Reckoning
Don't be fooled by good economic news

Unemployment is going down. Consumer debt is going up. Even the housing market is showing signs of improvement. But the US economy is far from recovery mode.
Stocks close mixed following Greek debt talks

The S&P 500 index eked out a tiny gain Monday while traders kept an eye on talks in Europe to cut Greece's crushing debt load, but other indexes ended slightly lower. The Dow fell 11 points to close at 12708.
The Reformed Broker
Wall Street's return on equity problem

The conditions of the early 2000s made big banks great profit machines. Now they aren't looking so good.
Strong housing report boosts stocks

The Dow and the S&P 500 had their highset closing numbers since July, propelled by a surprisingly strong report on the housing market and the possibility of more money for the International Monetary Fund. The Dow rose 96 points to close at 12578, and the S&P gained 14 points to end the day at 1308.