Senate Banking panel reviewing Facebook IPO issues (UPDATE)

The Facebook logo is seen on a screen inside at the Nasdaq Marketsite in New York.

The U.S. Senate Banking Committee is reviewing “issues raised in the news” regarding Facebook’s botched initial public offering, a Democratic Senate Banking aide said on Wednesday.

The review is not considered a formal investigation at this point, but entails briefings among the committee staff and regulators, Facebook and other stakeholders.

The announcement by the committee comes on the heels of reports by Reuters that an analyst for lead underwriter Morgan Stanley cut his revenue forecasts for Facebook in the days before the offering. That information was not disclosed to the market before the stock was listed.

The IPO also suffered setbacks following a technology glitch on the Nasdaq exchange, and staff at the Securities and Exchange Commission are reviewing the incident.

The Senate Banking aide did not provide details about what issues the committee planned to explore, but its plans to review the matter adds to mounting pressure on Facebook, Morgan Stanley and Nasdaq.

On Tuesday, two top U.S. financial market regulators both said they would explore the circumstances surrounding Facebook’s IPO.

Richard Ketchum, the head of Financial Industry Regulatory Authority, said he was concerned about whether or not there was selective disclosure about the negative forecast to investors.

SEC Chairman Mary Schapiro also said her agency wanted to explore “issues” surrounding the Facebook IPO as well, but she did not provide any specifics.

Morgan Stanley has previously said it has complied with all of the applicable regulations.

Meanwhile, Massachusetts state securities regulators have already issued a subpoena to Morgan Stanley seeking information about its analyst’s discussions with investors about Facebook.

Facebook Inc, Chief Executive Mark Zuckerberg, and several banks led by Morgan Stanley were sued by shareholders, who claimed the defendants hid the social networking leader’s weakened growth forecasts ahead of its $16 billion initial public offering.

The defendants were accused of concealing from investors during the IPO marketing process “a severe and pronounced reduction” in Facebook revenue growth forecasts, resulting from increased use of its app or website through mobile devices.

The lawsuit was filed in the U.S. District Court in Manhattan, according to a lawyer for the plaintiff.



News
Entertainment
Sports
Lifestyle
News

Rock legend Neil Young files for divorce after…

The legendary Canadian rocker Neil Young has filed for divorce from his wife of 36 years.

Local

FDNY debuts new fire simulator for blazes at…

The New York City Fire Department christened its newest, state-of-the-art, custom-built simulator at its training academy on Randall's Island Tuesday.

Local

Bronx cop saves baby who stopped breathing

A Bronx police officer is credited with saving the life of a 2-month-old baby who stopped breathing Tuesday morning. Police Officer Johnny Castillo, 38, was…

Local

Brewer celebrates Women's Equality Day with voter pledge

Manhattan Borough President Gale Brewer celebrated Women’s Equality Day Tuesday by pledging to register at least five women voters before the Oct. 10 deadline. Brewer…

Movies

Review: 'The Last of Robin Hood' is a…

Dakota Fanning plays Errol Flynn's (Kevin Kline) teenage gal pal in "The Last of Robin Hood," which takes a scandal and makes it dully empathetic.

Movies

Review: The uneven 'Life of Crime' mostly gets…

Elmore Leonard's "The Switch" becomes the new indie crime dramedy "Life of Crime," with Jennifer Aniston as a kidnapped woman whose husband won't pay up.

Movies

Review: Pierce Brosnan gets a cut-rate Bond knockoff…

Pierce Brosnan tries to reclaim his glory days with the spy thriller "The November Man" but instead gets a sad DTV-style ripoff with lame action.

Music

Tiesto headlines Made in America

Electronic music legend Tiesto is ready to get in touch with his inner Rocky at the Jay Z-curated Budweiser Made in America festival this weekend…

College

When are 2014 college football playoffs? (Schedule, date,…

When and where are 2014 college football playoffs? A look at the schedule, date, TV, time for the semi-finals at championship game.

NFL

Dimitri Patterson suspended only for rest of preseason…

Dimitri Patterson ended up getting just a slap on the wrist.

Sports

Eugenie Bouchard excited for 'rowdy' fans at US…

Eugenie Bouchard is sure to endear herself to New York's tennis faithful as she tries to win her first grand slam title across the next two weeks.

MLB

MLB Power Rankings: Angels and A's still at…

MLB Power Rankings: Angels and A's still at top, Nationals climb

Parenting

Lure your baby to sleep with Maroon 5…

These new renditions of "Moves Like Jagger" and "Payphone" are Maroon 5 like you've never heard them before.

Wellbeing

Who is having the most orgasms?

  Single lesbians report having orgasms more often than heterosexual women but both gay and straight men still come out on top of the climax…

Home

Jonathan Adler shares his tips for a great…

Jonathan Adler took a break from boogie boarding at his beach house to tell us how to keep that Labor Day party festive.

Travel

Most popular Labor Day weekend destinations

Priceline.com released its Top 20 destinations for the end of summer, including Labor Day weekend. If you’re heading to any of these spots, expect a…