Zynga IPO (That Was Total B.S.)
You guys know that I'm not a fan of Goldman Sachs and JP Morgan and how they are the underwriters on many of these tech companies going public. They set the initial IPO too high. They hype the IPO too much. And they should go to jail for using their stock analysts to rate the stock a buy based on flimsy bogus logic, and non-existent numbers.
Former New York Attorney General Eliot Spitzer fought to fix the situation by forcing companies like Goldman Sachs and JP Morgan to only compensate their stock analysts from non-IPO funds. Of course the big power financial firms didn't like Spitzer and ultimately they helped take him down by using Fox News and a prostitute scandal. With Spitzer gone, powerful firms like Goldman Sachs and JP Morgan went back to publishing bogus analyst reports on companies they took public.
Goldman Sachs and Morgan Stanley are two companies that took Zynga public, being paid some $33 million dollars for their efforts. Mutual Funds managed by Morgan Stanley, then invested in Zynga at $14 per share. In other words, if you hire Morgan Stanley to take your company public, they won't just hype the stock. They won't just produce bogus analyst ratings reports trying to suck in amateur traders like you and I. No, they'll even direct client funds in their managed Mutual Funds division to actually buy the stock and pump up the price.