Saturday, August 18, 2012

And Now Facebook's Bankers Are Divvying Up The $100 Million They Made Shorting Facebook's Stock




Henry Blodgett writes: Boy it doesn't suck to be a banker. Every time I forget how much it doesn't suck, I'm reminded of some other magical cash-printing tool I had forgotten about that allows Wall Street to coin money no matter what.  And this latest one is a real beauty.

Remember the Facebook IPO? Yes, it was one of the biggest IPOs ever. It has also now become a colossal disaster that has vaporized half of investors' capital in three months.

Wall Street bankers were paid extremely handsomely to sell the $16 billion of stock they sold on the Facebook IPO. Specifically, they were paid $176 million in fees. (Investors who bought Facebook's stock on the IPO, meanwhile, have since lost $8 billion).  But that was only the beginning….


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