Reuters – Two top U.S. financial regulators called for a review of the initial public offering of Facebook last week, putting fresh pressure on the company, its embattled lead underwriter and the Nasdaq.
After Friday’s [May 18] nearly flat close and Monday’s [May 21] 11 percent plunge, Facebook shares were down 8 percent at $31.28 in late afternoon trading Tuesday [May 22] on heavy volume of 88 million shares. At that price the company has shed more than $17 billion in market capitalization from its $38-per-share offering price last week.
“The allegations, if true, are a matter of regulatory concern” to the Financial Industry Regulatory Authority and to the SEC, FINRA’s Rick Ketchum told Reuters.
