Sue Craig, New York Times, on the Facebook IPO and Who's to Blame

You think you've got problems. Be glad you're not made my wife had to sell her FaceBook here she got 31 dollars and 46 cents per share and I am in the dog house. Right now FaceBook -- trading at about 32 dollars. And six cents. We're joined by -- Craig from the New York Times today -- well. Over the show are you -- or so so this FaceBook IPO. Is a botched it's a debacle at this point. You know -- you lot of blame to spread around here who who it from your perspective in your research who's to blame for the failure to FaceBook IPO. Well there's there's definitely no shortage of it I think if you look at -- sort of have to start back at the -- what sort of trading and there's problems on. And stopped initially that sort of caught -- it did to certain just state stands still and there's problems with. Trade execution so Morgan Stanley is pretty critical of the -- stuck in at this point Justin kind of discussions with them people on the street and the reason why it's moments it's really important on these sort of things you want a public did. We get open you'll have to. The strong open so people feel good about it so what happened was is it opens it there's some problems and retail investors just started selling the number one. The one -- it was a number one seller the shares on. Friday -- of the biggest -- of creature was number one was -- -- through citadel which is a lot of retail investors that they got worried. And then. We sort of go to the next kind of grouper or perhaps it's sort of take some of the blame. And dot. Com there's just a lot of criticism not about the pricing that they that the valuation didn't. Meet the pricing that they chose in the middle of the of the protests leading up to the IQ of the actually increase the price range for the IPO. There's been criticism of and not a criticism that they they were not inclusive of some of the under -- either right underwriters. -- in their discussions with them on things like pricing and and and -- Elena kind of thing. Let me ask you about Morgan Stanley because. Z -- it would appear to me that they had to choose between their investment banking client and their retail climate right because they you know darn well. FaceBook is sitting in hundreds of thousands if not millions of their retail client accounts. It and from where I'm sitting it seems like they chose their investment booking banking client FaceBook over their retail clients in my reading -- Well executed its -- question and I could see what you are I think it's maybe not quite that simple and what that reading comes -- I mean I think they've faced. Which is as we all know an incredible demand from the the -- and there shot into the huge regional now. And people were just clamoring to get their hands on this thing. And so -- they -- and when they raised the price they said there's huge demand it and and the demand is part of the equation. When you look. Whether or not to raise the price so they did that in and there's been questions about it I mean -- there was disagreement amongst in the the end of writers and whether or not. That should have been done it and and we of the a lot of stories -- -- -- that the valuation just simply could not support to pocket that price. Which was true. So I mean it's it's hard I mean we're we're playing here you know Monday Morning Quarterback but those questions are -- You know ballot they also sent that they were looking into the -- -- -- -- Too large of an amount on the first stated the generator sort of what he wants to but not too hot not too coal. They don't wanna see it collapse thirty or 40% biblical units by over 10% appreciation and that's sort of all that the metrics they were -- Hold on and I I think it's safe to say that they at this when we continue with hindsight that they. Over read in terms of doctoring and is the obsolete demand for -- and should've kept that the lower range. How how have you talked any Morgan Stanley clients retail clients at all and any of them emailed to you after you wrote the story. Yet we we have and there you -- -- we're reporting sort of gone and directions -- -- and then and there are upset I don't blame them I mean regional investors are not. Long term players and you're doing in IPO you almost have to ask him if they're they're gonna get out kind of either way -- it goes -- to -- wanted to profit but it goes down on the going to be an. Angry like itself and that you know goes to the stock on Friday you know -- once one of the biggest. -- they were your biggest and Trent acting. You know back you know. Of all the shares traded they would -- player. Any do you think if it they'll be any lawsuits over this if the shares dropped a ten or fifteen dollars a share. Well there's always lost to the question is sort of the some extent the cabinet I I think that and I talked to some lawyers about this in other IPOs we've seen. You know there's so many disclosures around -- It's it's tough to sort of Huard could go that you could also look at. -- that now -- media have left open Morgan Stanley has left itself open there's certainly a lot of targets for lost it's whether or not they'll be successful the other question. -- of the trading traders telling you the bottom is for the stock I mean. We -- down it's highly unusual to see -- stock go from 38 on the IPO to 32 on the you know couple days later. What are you hearing as a bottom dweller for shares of baseball. During a lot of mean Mike my gut on it would be it's sort you know I don't I don't mean I don't know it's sort of a crystal ball but I I just sitting here it would tickets can ago. Not much slower mean -- bit lower it has other things weighing on it just in terms of the broader market that's why it's impossible to predict were looking in Europe. Just which concerns of their concerns about the economy and we have an election coming up it is the Summers are looking like it's gonna view roaring for the stock market. So you know out stock market goes so goes -- but I I think we've sort of seen is that the market analyst at that route where we ours where it should be for now. Yet and Zuckerberg is not happy about this either -- only sold -- small portion of the company right he still owns. A big chunk of this company that's not publicly traded. Police not up -- -- -- one because you wanted to -- -- do better which he ended up with that with thirty dollars a share that the going you know he's got so I mean for. Top point of view umpire says it is the bid up there is that where it's not now. He raised more money so it's sort of -- I'm sure he wanted them positive people could see the scope batter but he also he also got it sold 38. Which is not to shop for them. No he's a wealthy man he'll never have to worry about. How he's gonna pay his rent or anything like that -- -- do what -- copper yes yes maturities. We'll -- thank you very much for joining us appreciate your time critics out there that's -- Craig joining us from New York Times in. Giving us her perspective on the FaceBook IPO.