BOSTON (CBS) – Massachusetts is pushing forward with its subpoena of Morgan Stanley over exactly who knew what before the Facebook IPO.
Secretary of State Bill Galvin says his office is concerned about fairness in the marketplace. He says retail investors and average citizens will have to be assured of fairness in the markets, before they feel safe enough to get back in.
WBZ NewsRadio 1030’s Anthony Silva reports
Galvin says his office has already been in touch with Morgan Stanley. He says because of the significance of the Facebook case, it’s in everybody’s best interests to get to the bottom of what happened, as quickly as possible.
Galvin says Morgan Stanley has to tell his office what process was followed, what information was given out, and in what sequence they did it. He says that’s the key toward determining whether or not Morgan Stanley committed any improper conduct.
Galvin says these sort of charges are not unheard of, and investor confidence is hanging in the balance. He says just last year, his office fined Goldman Sachs $10 million dollars for giving preferential treatment to special clients.