Thanks, AD. Getty's article mimicked my thoughts, but it's not going to get better unless the public figures out, these MONKEYS could care less about what the company sells, and more about making the commissions off the underwriting. The key is pushing the garbage out the door, before it starts to smell.
The brokerage firms have secured means of dumping their investment banking underwritings on the public, by simply buying trading firms through their own holding companies. Goldman bought out Spear, Leeds & Kellogg who also owns REDI ECN, and Credit Suisse First Boston bought out DLJdirect just to name a couple. These houses can now underwrite trash and dump it, using other market makers in the process without implying any wrong-doing since the public uses the same ones too.
Here's an interesting article on possible kickbacks to the brokerage firms for giving away oversized allotments to smaller asset hedge funds, who were willing to pay more up-front commissions for hot IPO's. The SEC is on their asses, and someone's going down because of it. Their just scratching the surface on IPO improprieties.
NOTE: CSFB is mentioned in the article several times, too. What a surprise!
Here's an excerpt from the article, basically implying that these monkeys knew the IPO game was over by leaving when they did, in April. >>>GLG -- a unit of Lehman Brothers Holdings from 1995 until last April -- manages $6.5 billion in assets, according to BigDough.com, an online database<<<
public.wsj.com
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