Morgan Stanley CEO James Gorman defended his firms handling of the Facebook IPO and said investors or traders were naive to think they could get rich off a Facebook stock surge once it went public. He added, the only people who deserve to get rich off the IPO are Morgan Stanley and the people who created Facebook.
He went on: This IPO wasn’t for the crazy and stupid investors who jump on IPOs and expect to never work again. It’s like those people who buy lottery tickets every single day thinking their going to win someday. Just because there’s an IPO and everyone’s talking about it and the media are hyping it up doesn’t mean you have to jump in. I’m me hell, in England people aren’t this obtuse. He didn’t really say all that but it sure seemed like it to an extent:
“People who thought they were buying this stock so they could get an enormous pop were both naive and ordered under the wrong pretenses,” Gorman, 53, said today in an interview with CNBC. “Why you’re taking companies public is to establish a long-term investor base. To that investor, I would hope that they haven’t panicked during the flurry of the last few days.” (Bloomberg)