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
Local

Monday is the deadline to register for Pennsylvania…

If residents want to vote in the May primary, which includes a vote for a new City Council member, today is the deadline to register.

National

Miss America thinks school should reconsider discipline of…

A Pa. student was suspended for asking Miss America to prom.

Local

Aria Health Torresdale workers caught selling prescription drugs

Two Aria Health at Torresdale employees were fired amid accusations they sold prescription drugs out of the Northeast Philadelphia campus.

National

Rubin 'Hurricane' Carter died Sunday from prostate cancer…

Former U.S. professional boxer Rubin "Hurricane" Carter, who spent 19 years in prison for murder and then was released after it was determined he did not get a fair trial,…

Television

‘Mad Men’ recap: Season 7, Episode 2, ‘A…

Peggy and Lou are horrible, Bert's racist, Don is honest(ish) and Roger and Pete are frustrated. "A Day's Work" not quite worthy of "This Will Be Our Year."

Television

'Game of Thrones' recap: Season 4, Episode 3,…

The problem with the devil you know is that ignoring them doesn’t mean they simply lie in wait. It allows them time to do things…

Television

Discovery cancels 'Everest Jump Live' special in wake…

The Discovery Channel has indicated it will not be moving forward with "Everest Jump Live," a planned special about mountain climber Joby Ogwyn's effort to…

The Word

'X-Men' director Bryan Singer drama continues

  News broke late last week that "X-Men" and "The Usual Suspects" director Bryan Singer is being sued by a man who said Singer molested…

NHL

Ray Emery steps up in Flyers’ Game 2…

Sure, he allowed two goals in the Rangers’ first four shots Sunday afternoon, but it’s about how you start, not how you finish.

NHL

Flyers come from behind, even series with Rangers

The Flyers overcame a two-goal deficit to get a much-needed win at Madison Square Garden Sunday.

MLB

Phillies get set for four against the Dodgers

The Phillies will face tough starting pitching out west against the Dodgers this week.

MLB

Phillies notebook: Cole Hamels returns this week

The Phillies should receive a big boost when Cole Hamels returns during the Dodgers series.

Travel

Packing: The one thing you need in your…

A new survey that looks at the travel habits of 50,000 people around the world has revealed that Western and Asian globetrotters have different priorities…

Home

Is your chair making it hard to talk?

Ever wished there was an office chair that could make impromptu meetings and discussions more private? The Cristiana Wing Chair is an asymmetrical armchair which…

Travel

Live large at these luxury hotels

From Thai boxing lessons and macabre Dracula tours to the Australian Outback, the Four Seasons hotel chain launched a series of new travel packages this…

Parenting

4 things that every summer camp should have

Alan Saltz, director of the 92nd street Y program lists things that every summer camp should have.