Republican and Democratic lawmakers on Wednesday began to look into the debacle of what was supposed to be the social networking company’s crowning achievement.
Lawmakers want to know whether institutional investors got a sneak peek at an updated analysis, written just before the initial public offering, that gave a more pessimistic assessment of Facebook’s future revenues. It’s that analysis that might have caused the hotly anticipated stock to tumble out of the gate, losing more than a quarter of its value in its first two days on the open market.
“Effective capital markets require transparency and accountability, not one set of rules for insiders and another for the rest of us,” said Sen. Sherrod Brown (D-Ohio), who heads the Senate Banking Committee’s subcommittee on Financial Institutions and Consumer Protection and called on the Securities and Exchange Commission (SEC) to investigate.
keyboard shortcuts: V vote up article J next comment K previous comment