Henry Blodget Calling for SEC to Investigate Facebook Estimate Cut

May 22, 2012
J. Webster
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Yes, you read that right, Henry Blodget, who is banned from the securities industry, is calling for the SEC to investigate the underwriters of the Facebook IPO for supposedly cutting estimates before the stock even went public:

“The SEC has to look at this – it’s bizarre,” says Blodget. How can you have an estimate cut in the middle of a road show and not have that communicated widely?”

“I’m very curious to hear how this is going to be defended by Morgan Stanley [MS 13.628 0.438 (+3.32%) ] as well as Goldman Sachs and JPMorgan – (JPMorgan Chase and Goldman Sachs, which were also major underwriters on the IPO but had lesser roles than Morgan Stanley.)

It’s unbelievable that (anyone) would think it’s not material that the underwriter is cutting estimates during a road show – how could you not want to know that!” (CNBC)

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