"As it happens on wallstreet, someone made a killing" Facebook IPOs.
"As it happens on wallstreet, someone made a killing" This is what I have to say after getting to know about the 'Facebook Fiasco'. Actually it's not exactly a fiasco, it's like a regular routine that Morgan Stanley, JP Morgan and Goldman Sachs follow to steal from their investors. In other words, "Morgan style of looting". Now that the shares of Facebook are taking a plunge all of the deep dark secrets are coming out.
These big banks which practically had created the 2008 financial crisis have now indulged in another small time scam of theirs. Although they have outstanding lawyers who will definitely get them out of this soon but for now they're trying to fix this.The whole world was eagerly waiting for The Facebook, sorry I mean for Facebook to release it's IPOs. The first thirty seconds saw 80 million shares going from one to another. What had happened was that the big banks had come up with some 'special schemes' as everyone got to know about it. Here the general people were buying shares at $40 a share and this rose to $42 a share in no time. Now this was because people like us were told that we can get them at nothing less than $40 and this was what seemed like the 'opening price'. When people started getting to know that the shares were being sold to them at higher rates, they instantly started complaining. This 'fiasco' or in other words 'well sought out loot plan' was very unclear till Monday and on Monday Nasdaq announced it as a technical error and is still trying to solve it.
The buyers have started accusing and suing the banks and Facebook for insider trading and most probably these banks are going to come out of it when they'll show a big scheme of events and so called 'policies' they implemented and make their stand extremely legit.
With investors losing a great amount of money due to delays in trading and various lags this one right now it simply looks like another rabbit from the great hat of these huge banks this time this bunny is going to cost a penny.