Morgan Stanley defends Facebook IPO procedures
(Reuters) - Morgan Stanley said its procedures for the Facebook Inc's initial public offering were "in compliance with all applicable regulations."
"Morgan Stanley followed the same procedures for the Facebook offering that it follows for all IPOs," spokesman Pen Pendleton said in a statement. "These procedures are in compliance with all applicable regulations."
Morgan Stanley issued the statement on Tuesday afternoon after Massachusetts Secretary of Commonwealth William Galvin issued a subpoena to the company related to an analyst's communications with investors about Facebook's revenue outlook.
The subpoena followed a Reuters report that the bank's consumer Internet analyst, Scott Devitt, reduced estimates for Facebook in the run-up to its IPO on Friday and informed certain investors.