It's worse than we thought…

Henry Blodget broke a story tonight that’s almost too incredible to believe (why I still get shocked by this stuff, I have no idea)…

From Business Insider:

Earlier, we reported that the analysts at Facebook’s IPO underwriters had cut their estimates for the company in the middle of the IPO roadshow, a highly unusual and negative event.

What we didn’t know was why.

Now we know.

The analysts cut their estimates because a Facebook executive told them to, a source tells us.

The information about the estimate cut was then verbally conveyed to sophisticated institutional investors who were considering buying Facebook stock, but not to smaller investors.

These Valley motherfuckers have no idea what kind of game they’re playing once they get involved with Wall Street.  They think they can have casual conversations with analysts at underwriting banks and say what they want to who they want when they want to say it.

If true, the story you’re about to hear certainly violates Reg FD and may even constitute insider trading (or insider non-trading as it were).

OK, I’m done, head over and read the story…

Source:

EXCLUSIVE: Here’s the Inside Story of What Happened on the Facebook IPO (Business Insider)