Morgan Stanley (MS) In Full Fledged Disaster Control Mode After Facebook (FB) Fiasco
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Morgan Stanley (NYSE: MS) is apparently in full-blown disaster control mode after the Facebook (Nasdaq: FB) IPO debacle.
Today the company sent out a memo to 17,200 financial advisers at its Morgan Stanley Smith Barney retail brokerage joint venture saying they are reviewing customer IPO orders on a trade-by-trade basis and will make price adjustments if those clients paid too much for the stock.
While the firm didn't specify how many adjustments will be needed they "expect there will be a number of price adjustments."
The largest adjustment will be done over the next several days and the remaining adjustments will be completed as soon as possible.
In addition to an outrage from clients, Morgan is battling fallout after it was reveled that analysts at Morgan Stanley cut the revenue outlook on Facebook while the IPO price and size was being increased. FINRA is reviewing the matter and Massachusetts's secretary of the commonwealth issued a subpoena.
Shares of Morgan Stanley are down 2.4 percent on litigation worries from the Facebook IPO debacle.
Today the company sent out a memo to 17,200 financial advisers at its Morgan Stanley Smith Barney retail brokerage joint venture saying they are reviewing customer IPO orders on a trade-by-trade basis and will make price adjustments if those clients paid too much for the stock.
While the firm didn't specify how many adjustments will be needed they "expect there will be a number of price adjustments."
The largest adjustment will be done over the next several days and the remaining adjustments will be completed as soon as possible.
In addition to an outrage from clients, Morgan is battling fallout after it was reveled that analysts at Morgan Stanley cut the revenue outlook on Facebook while the IPO price and size was being increased. FINRA is reviewing the matter and Massachusetts's secretary of the commonwealth issued a subpoena.
Shares of Morgan Stanley are down 2.4 percent on litigation worries from the Facebook IPO debacle.
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