The snowball continues to roll into a full-out avalanche of bad for Facebook as Congress has decided to join the circle of skeptics and investigators to look into company’s now-famously mishandled initial public offering.
According to Reuters, the House of Representatives and the Senate both have committees that will be looking into the problems and losses attached to Facebook’s IPO. Add this to class action lawsuits and the personal lawsuits – one wonder if all of that will eventually amass into one big lawsuit-ing conglomerate – and Facebook really has covered all of the bases with this snafu.
Sean Oblack, a spokesman to the Senate Banking Committee, said the review will focus on “issues raised in the news” and that staff will be conducting briefings with “Facebook, regulators and other stakeholders.”
Marisol Garibay, a spokeswoman for the House Financial Services Committee, said staff there is also receiving briefings on the issue and “gathering information and facts.”
“While no hearings specifically focused on this IPO are planned at this time, the Committee will have hearings over the coming weeks where this topic is likely to be raised,” she said in a statement.
Some of the points of interest that Congress may be looking at are the peculiar “glitch” NASDAQ experienced the morning of Facebook’s IPO that delayed the trading of Facebook shares and what role Morgan Stanley played in deceiving investors about Facebook’s earnings.
It’s seriously been nothing but bad news for Facebook since its IPO. Honestly, it’s hard to recall when this was actually still considered a good idea.