Financial News

[southsider2k5]

$42.05 first official print. 82 million shares traded in first 30 second. Heavy selling imbalance is what pushed open back. Now we are under that at about $41

[Soxbadger]

And then down already to 41?

 

Kind of seems that people arent sure what to do with it yet, as its going down.

[Soxbadger]

$42.05 first official print. 82 million shares traded in first 30 second. Heavy selling imbalance is what pushed open back. Now we are under that at about $41

 

Yep seems every is hitting the sell hard because its consistently dropping and its hard to imagine another wave of huge buying.

[Balta1701]

Apparently Bono is an investor and will make more off of the IPO than he did off his entire career with U2.

A great example of how completely f***ed up and unfair this entire process is. If you're already a millionaire, you can use connections with investment banks to sneak around the rules, get in before everyone else can.

[Soxbadger]

Balta,

 

If your referring to accredited investors, etc, those rules are in theory to protect the little guy from bad investments and scams.

 

Nothing is perfect.

[Balta1701]

Balta,

 

If your referring to accredited investors, etc, those rules are in theory to protect the little guy from bad investments and scams.

 

Nothing is perfect.

OTOH, Facebook made use of a technique arranged by Goldman Sachs to include far more than the legal 500 investors before it ever became publicly available. And a great many insiders got to buy in early through those kind of connections.

[southsider2k5]

A great example of how completely f***ed up and unfair this entire process is. If you're already a millionaire, you can use connections with investment banks to sneak around the rules, get in before everyone else can.

 

No, not really. He put up money with Zuckerberg, not an IB. q

[Soxbadger]

OTOH, Facebook made use of a technique arranged by Goldman Sachs to include far more than the legal 500 investors before it ever became publicly available. And a great many insiders got to buy in early through those kind of connections.

 

?

 

The article says that Goldman Sachs wasnt able to do it with US investors.

 

"Goldman Sachs concluded that the level of media attention might not be consistent with the proper completion of a US private placement under US law. The decision not to proceed in the US was based on the sole judgment of Goldman Sachs and was not required or requested by any other party. We regret the consequences of this decision, but Goldman Sachs believes this is the most prudent path to take," the bank said in a statement."

 

So it looks like they tried to circumvent the US rules, but ultimately did not. Bono is a foreign investor.

 

 

[Balta1701]

?

 

The article says that Goldman Sachs wasnt able to do it with US investors.

 

"Goldman Sachs concluded that the level of media attention might not be consistent with the proper completion of a US private placement under US law. The decision not to proceed in the US was based on the sole judgment of Goldman Sachs and was not required or requested by any other party. We regret the consequences of this decision, but Goldman Sachs believes this is the most prudent path to take," the bank said in a statement."

 

So it looks like they tried to circumvent the US rules, but ultimately did not. Bono is a foreign investor.

And you're going to tell me that's the only way to sneak around the rules and get in early?

[Soxbadger]

Well youll always have people breaking the rules, you can only do so much to try and prevent it.

[southsider2k5]

NASD having all kinds of problems today. ZNGA has had really long halts, along with them still not having confirmations out to all FB opening crosses.

[Balta1701]

Timothy Geithner came as close to politely suggesting Jamie Dimon should resign from the NY Fed as you're ever likely to see any Wall Street type do.

“JEFFREY BROWN: Do you think Jamie Dimon should be off the board [of the New York Federal Reserve Board]?

 

TIMOTHY GEITHNER: Well, that’s a question he’ll have to make and the Fed will have to make. But again, on the basic point, which is it is very important, particularly given the damage caused by the crisis, that our system of oversight and safeguards and the enforcement authorities have not just the resources they need, but they are perceived to be above any political influence and have the independence and the ability to make sure these reforms are tough and effective so we protect the American people, again, from a crisis like this. And we’re going to, we’re going to do that.”

[Balta1701]

Sigh.

Those trading positions have produced losses that could total as much as $5 billion, tarnishing the record of an executive who had thrived through the global financial crisis and who has long been known for paying close attention to the bank's trading activity, its risk profile and the activities of its senior employees.

 

...

 

In recent years, some of the group's trading morphed into what essentially amounted to big directional bets, and its profits and clout grew. Last year, Mr. Macris dropped risk-control caps that had required traders to exit positions when their losses exceeded $20 million. Ms. Drew and Mr. Macris declined to comment.

 

Mr. Dimon was unaware of the risk-control change, according to colleagues. Indeed, he had appeared to have started paying less attention to details of the group's trading activities amid the hefty profits, colleagues say.

[Cknolls]

Syndicate had 17 million shares $38 bid at the end of day. I think with a little more time in the trading day this pig would have broken the issue price. Should be an interesting Monday. They won't be able to hold that price forever.

[Balta1701]

Syndicate had 17 million shares $38 bid at the end of day. I think with a little more time in the trading day this pig would have broken the issue price. Should be an interesting Monday. They won't be able to hold that price forever.

Ideally, isn't "The price of the stock sort of hovers" what an honest company should expect to have happen when its shares first are put on the market? If the stock soars, that means the company itself underpriced the shares, doesn't it?

[southsider2k5]

Ideally, isn't "The price of the stock sort of hovers" what an honest company should expect to have happen when its shares first are put on the market? If the stock soars, that means the company itself underpriced the shares, doesn't it?

 

They said that Facebook filled its allocation, which means there was no one left to buy.

[Balta1701]

They said that Facebook filled its allocation, which means there was no one left to buy.

Serious q's in reply:

 

Does that mean that FB the company had a significant number of shares left over that they had no demand for at that price? Or could it mean that they only narrowly filled their demand before running out?

 

And isn't the number of shares there is ~ demand for at a set price something that FB should have had an idea of going in? Or is that impacted by the number of other shareholders other than the company who try to cash out?

[southsider2k5]

Serious q's in reply:

 

Does that mean that FB the company had a significant number of shares left over that they had no demand for at that price? Or could it mean that they only narrowly filled their demand before running out?

 

And isn't the number of shares there is ~ demand for at a set price something that FB should have had an idea of going in? Or is that impacted by the number of other shareholders other than the company who try to cash out?

 

Essentially the few people who couldn't get in were balanced by the people who were exiting positions. The underwriters were pretty impressive at setting the price.

[Balta1701]

Visit msnbc.com for breaking news, world news, and news about the economy

 

"With enough inequality of income, there is nothing even approaching equality of opportunity. That is what income does. It buys you and your children opportunities".

 

Great line, Ezra.

[StrangeSox]

Fb is avoiding paying $16 billion in taxes by deducting stock option costs. This will be the largest such deduction ever taken.

[mr_genius]

Fb is avoiding paying $16 billion in taxes by deducting stock option costs. This will be the largest such deduction ever taken.

 

Didn't Obama give a speech at Facebook talking about how the are the perfect company? haha. oops.

 

Now Obama's buddies are renouncing their US citizenship to avoid taxes.

[southsider2k5]

Facebook has broken through its IPO and is under $36 now.

[southsider2k5]

Head of Knight CM said that total losses due to NASD systems problems during the FB IPO could be as much as $100 million. Crazy.

[southsider2k5]

Damn. He just said that NASDAQ probably made money on Friday because they ended up short because of errors incurred during the opening. He said they knew they had software problems and still opened the stock. That is some serious stuff right there.

[Balta1701]

The crisis at JP Morgan escalated yesterday as it emerged its trading losses in London could rise to as much as $7bn (£4.5bn) and the US bank cancelled a share buyback. Fears were growing that the losses could spiral from an initial $2bn, which was declared on 10 May, as JP Morgan struggles to unwind the massive bets made by the so-called "London Whale" trader Bruno Iksil.

 

In a further blow, chairman and chief executive Jamie Dimon has suspended plans to use the US bank's own funds to buy back $15bn worth of shares. Buybacks are a popular way for firms to use up cash sitting on the balance sheet and prop up the share price.

$15 billion would be a lot of cash to hold on to if you were only expecting to have to cover a $2-$3 billion hole.