4 ms·

"There's a reason why the big banks backed the IPO but didn't take a percentage." Morgan stanley has 19 mil shares. Goldman has 2 mil shares. They backed the

• antr 15y ago
  they didn't invest cash, they just exercised their green-shoe.
  • crag 15y ago
    Exactly. They never invested cash. It's all vapor. In other words, both banks lose nothing except the promise of future profits. Both banks already made their money (and then some) on the IPO and associated fees. Now of course, assuming the banks had no knowledge of Groupon's true financial health; they did nothing illegal. BUT ethically, brokers/traders have a responsibility to informed their clients when it's time to cash out. A lot of people made money off this deal. And lot didn't. But Groupon, if what I'm hearing is true, is committing fraud. I mean, my god, are they cooking the books? Sort of reminds me of Enron. But only time (and many lawsuits later) will tell.