Jew World Order

Morgan Stanley, the lead investment bank in Facebook’s troubled initial public offering (IPO), will compensate retail investors who overpaid when they bought Facebook’s stock last Friday, according to a source familiar with the matter.

The person said that the firm is reviewing the orders that its retail clients placed for Facebook stock, and will make price adjustments if they had paid too much. The person spoke on the condition of anonymity.

The person did not say what amount constituted as overpaying for Facebook’s stock.

The social network’s IPO was highly anticipated, but the stock closed nearly flat on its first trading day at $US38.23.

Morgan Stanley and Facebook will face at least two lawsuits over the IPO. Both suits allege that analysts at the large underwriting investment banks cut their second-quarter and full-year forecasts for Facebook, just before the IPO, and had told only a handful of clients. Morgan Stanley has declined to comment on the lawsuits. Facebook has called the lawsuits “without merit”.

On Thursday, Facebook’s stock closed up US$1.03, or 3.2 per cent, at US$33.03. This gave the company a market value of US$90.4 billion, down from US$105 billion at the end of trade last Friday.

Meanwhile, a New York broker has asked Nasdaq to compensate it for up to US$35 million (AU$36.01 million) in losses on the Facebook IPO, because of the market’s computer problems on the IPO’s first day of trade.

Knight Capital said in a filing to the Securities and Exchange Commission late on Wednesday, that it had submitted a claim to Nasdaq over losses related to Friday’s computer problems, which disrupted buy and sell orders during the launch of the US$16 billion IPO and caused havoc at many brokerages.

“As has been well-publicised, there were numerous issues and problems at Nasdaq relating to the trading of Facebook. Some market participants, including the company, suffered sizable losses,” Knight said in the filing.

“The company estimates its total pre-tax loss, related to the events associated with the trading of Facebook, to be in the range of [US]$30 to [US]$35 million.”