In business news, questions have arisen over the role of banking giants Goldman Sachs and JPMorgan Chase in Facebook’s initial public offering last week. While both banks helped manage the IPO, they also reportedly helped hedge funds bet that the new stock would fall through a process known as shorting. Investors who shorted Facebook made millions as the company’s value dropped 11 percent on Monday and a further 9 percent on Tuesday before rebounding.
Goldman Sachs, JPMorgan Scrutinized over Role in Facebook IPO
HeadlineMay 25, 2012