Facebook Banker Morgan Stanley Props Up Price It Helped Boost
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Morgan Stanley's reputation as lead underwriter may suffer from the stock market debut of Facebook Inc., whose initial public offering left investors in the largest social network disappointed.
The bank stepped in to prop up the stock from dipping below its $38 IPO price yesterday, said people with knowledge of the matter, who asked not to be identified because the purchases were private. Morgan Stanley, based in New York, was the only underwriter among Facebook’s 33 banks with the responsibility to support the shares, the people said.