stay with us on morgan stanley. back in a moment. >>> what do you want to say about the stock going from 38 and in fact he got his statement on monday at 42? >> well, i'd like to think that firstly, the group of people that thought they were buying the stock to get an enormous pop were both naive and boarded under the wrong pretense. what any company does when they are taking it public is to invest a long term investor base. i would hope that they have not panicked during the flurry of the last few days, and today the stock traded at 2680. it finished 10% higher from the lows. we remain in a very volatile period. >> all right. you just heard the exclusive interview with the ceo at morgan stanley. james gorman talked about the hype of the facebook ipo. were investors naive? michael farr and gary kaminsky on the telephone with us as well. gary kaminsky, your thoughts of that phone call? >> i was glued to the call. i thought the stuff early on about moody's, gorman focused on liquidity issues and so you set it with a s

i don't envy the job morgan stanley had. it is a great firm that has done some good transactions in the past. in this particular case, they misjudged the real demand. >> how do they do that? they know their way around an ichlt po. >> the level of oversubscription gets to a point where it is ridiculous. to judge what people's real demand is going to be is difficult. raising the price and the size components on the transaction as aggressively as they did also created a problem that you have seen play out in the aftermarkets. >> what about the glitch at the nasdaq. we closed at 3823. had everything gone perfectly smoothly, no problems at all, would the stock have ended higher? >> it may have. it may well have. i think that with a stock like this that is a momentum oriented stock, because the valuation metrics are very aggressive, i think once you lose momentum, it turns to the down side and it becomes a busted ipo like we have had. i think if the stock had of had positive momentum and been able to sustain that out of the blocks

we're coming to you today from morgan stanley. this is a special edition of the "closing bell" live in mid-town manhattan. the international monetary fund downplaying reports that it with held a contingency plan to bail out spain. they cut their losses and it's clearly a sign that europe's troubles are still playing a major role in what happened in the markets in the united states. joining me with his thoughts is co-president of insurance institutional securities for morgan stanley. he's the head of the mid-east africa and asia pacific business. good to see you again. >> good to see you. >> thank you for joining us. you've got a lot on your plate these days. i realize that. later we're going to talk about facebook with james gorman. give us your take on imf in terms of the imf bailing out spain. do you believe it will play out this way? >> well, spain has strong links with the imf. i think what is happening here is that there is a push and bull between countries that want, in addition to fiscal austerity, some looseness and spendi

appreciate it, the latest on the morgan stanley conference call. we don't have a sense yet as to what the losses might be facing morgan stanley or any of the other banks on wall street and could be a mention before we get any sort of idea. at this point is it way too early to say, you know what? i'm going to take a gamble and go into morgan stanley and hope for the best? >> i think it's too early to go into morgan stanley on that reason alone. look, they made an awful lot of money supporting theistic at 38, so net-net they might have actually come out on top on this. i think the problem with morgan stanley now though, the crown jewel of their franchise, was the wealth management side, and i think to grow that now is going to take a little bit. this is a black eye, and it will take a bit to see any growth out of that. >> i know it's a surprise we're talking about facebook yet again, but for morgan stanley the residual liability is all on kind of the regfd side, the s.e.c. side, the latest chapter people are paying attention to, this pandora's box of

because if morgan stanley said it after revised s-1, then morgan stanley's in the clear. they're going to say facebook warned us. we warned our clients. also it's important to note analyst ratings and recommendations are protected generally free speech. you can say whatever you want to whoever you want. it just looks bad. >> i think the expectation is that it did come after -- after the disclosure in the s-1. of course, if you're facebook and you have six or seven amendments between when you first file february 1st and when you go public in mid to late may you want to make sure it's that very last disclosure that has maybe a piece of negative information in case you are trying to hide it or are hoping it goes unnoticed, you sort of want to slide it in under the radar. i'm not saying facebook was trying to do that by any means. when we got that disclosure, that's the only thing that was in it. the difficulty in monetizing mobile. that happened right when they were on the road show when analysts were starting to piece together their estimates. farce the minute by minute bre

morgan stanley. too hard for me.

morgan stanley's a place i've always loved, though. when i first came to wall street i applied there and goldman sachs and debated what should be better. 27 years later for many the verdict's not in yet. despite the company's endless protestations, morgan stanley's perceived as the weakest of u.s. banking institutions when it comes to ties with europe. it's considered the one that ratings agencies are most concerned about. even as this firm has done more to shore up its balance sheet than any other major institution in the space. they've taken up a huge amount of capital. what a great band it has, one that's loved by venture capitalists and young companies and will continue to be adored even after the facebook fiasco. but the drama here is thick. there are huge accounts betting against this firm. they think the stock has much further to fall. >> sell sell sell! >> there are others who think morgan stanley could be the most undervalued stock in the whole group, though. >> all aboard! >> because of the tremendous disparity between its bo

stanley, one of facebook's main underwriters. >> morgan stanley and the collective group of underwriters should this morning say to themselves, okay, how much are we willing to spend? this is a franchise-threatening event. >> yeah. >> let us put ourselves on the line. >> a franchise-threatening event. joining me now, scott wapner, john carney, a lot of people still angry about that debut of facebook on friday. let's take a listen to what thomas joyce of night capital had to say to "squawk box" this morning. >> i have no doubt they have a lot on their hands, but the industry will be looking at them. they exported their problem. they had a software problem, they knew it and exported their problem to the industry. and i think it's time to export a solution to the industry. >> so. taking aim at nasdaq, scott wapner. how big a hit reputationally is this for them? >> i think it's huge. this was supposed to be the nasdaq's grand moment. getting the facebook ipo was big in and of itself. friday was supposed to be the day. now they're left with an indictment of their own systems, indictment of th

i'm sure morgan stanley knew that. to me morgan stanley will probably get less ipo business. that's the way the greed factor works in the capital market. nasdaq didn't have a chance. there's no way that that platform could have kept up, and high frequency trade, they t didn't have nearly enough input for their models to do as much trading to damage it as much as they're being blamed for. when you hook in retail, and they're not happy, retail is the customers of not only the ipo, but facebook in general, in an election year, they're going to dig and dig and dig until they find some scapegoat. one scapegoat i know isn't going to pony up, that's the exchange. the exchange shouldn't. 15 million i heard? that's 14 million more than i thought we'd get out of it. >> thank you. by the way, a strong tdemand fo the two year note. thank you very much, rick santelli. >> last check, facebook 31, 71, down 7% right now. let's get to brian shactman with breaking news. >> i'm keeping my eye on chipol chipolte. cmj. i want to get this right, the u.s. attorney for the district of columbia is ba

now, moving onto morgan stanley. it's interesting, i thought quite brilliant they leaked the internal memo in the talking points from their web cast. that was a good move. the fact james gorman is coming on today. excellent move. he had some points very similar to jamie dimon with the trading fiasco. i thought that was excellent. jamie dimon just by contrast was more preemptive. morgan stanley waited a few weeks. i think he needs to have continued emit points. he's been steadfast in saying they haven't broken the rules. but here's the nuance, how can morgan stanley communicate to a general marketplace that while they adhered to the rules, but did they break the rules of fairness? did they violate any other rules of integrity or values that the marketplace seems to hold as high regard for as anything else these days. >> that's the critical issue he needs to address. >> i believe so. >> whether morgan stanley -- not didn't break the rules in a deinjury ray sense but broke the rules of fairness in a common sense sense,

morgan stanley's a place i've always loved, though. when i first came to wall street i applied there and goldman sachs and debated what should be better. 27 years later for many the verdict's not in yet. despite the company's endless protestations morgan stanley's considered the weakest of u.s. banking institution when's it comes to ties with europe. it's considered the one that ratings agencies are most concerned about. even as this firm has done more to shore up its balance sheet than any other major inside shoougs stoougs in the space. they've taken up a huge amount of capital. what a great band it has, one that's loved by venture capitalists and young companies and will continue to endure even after the facebook fiasco. but the drama here is thick. there are huge accounts betting against this firm. they think the stock has much further to fall. >> sell sell sell! >> there are others who think morgan stanley could be the most undervalued stock in the whole group, though. >> all aboard! >> because of the tremendous disparity between

situation for morgan stanley? don't. that weighs on morgan stanley for sure. dha it to themselves. of all of things that jamie said, the suspension of the buy back is the most troubling to me and can see how the rest wouldn't rally at all on the heels of that. i agree. i was surprised that the rally held and thought we would fade, but we are back to where we were thursday. >> they brought up the comments from premier. if you look at the risk assets, i want to look forward, not backward. you see a lot of movements. i'm not sure they are head faked. wlt and alpha. >> they probably are a head fake. they are really restructuring and you are not going to get that demand growth and copper that they used to. you might get a pop here, but i'm not sure and i know i wouldn't be buying fre port mac saying i am going to get a 20 or 30%. >> ivan hoe mines that you see get pummelled. at what point do you say the risk. $9.5 at this point. china has been swamped in copper. at a certain point you have to take a flyer. >> that's wh

could we see the kind of blowout that we saw at morgan stanley? >> it's always great to keep the risks in perspective. $2 billion to jpmorgan off 150 billion market cap. >> exactly. >> maybe they might have a $500 million loss or gain in any particular quarter, it's not a big deal. it's always going to have fluctuations. >> so you would buy morgan stanley at this level, then? >> i would definitely buy morgan stanley at this level. we think it's four to five stars. about four to five times more upside than downside and we enjoy the joint venture at the company. >> but you're looking for that division? >> i can understand why you might want to trade all of the financials right now because i think they are oversold. i think the politicians are making way too much of jpmorgan. they don't understand it. it's good grits for the mill if you're considered 11. but ultimately i want to see management tell me why keeping the retail business is a compelling story for medium term. earnings, revenue growth, the whole bit. because i just don't see it. i see the

what is morgan stanley's role in all of this? also morgan stanley, people are saying why aren't they stabilizing the stock today? they don't have any ammo left. they only had about 63 million shares to use. that is likely gone. nasdaq getting a lot of the blame for the glitch on friday. other non-morgan stanley underwriters. the truth of the matter is. would it cause the problem in the stocks? that is causing investors to scratch their heads. >> one of my traders has a question for her. >> that being said there are a lot of investors who chose to sit on their shares who didn't do anything. they know where the shares are that are become transabouted upon. by the underwriters? is that in the realm of possibility or last resort? >> the issue is that there is no precedent. this has not happened before on the scale that it has happened in this situation. could there be any sort of settlement over loss market caps? in the last couple days as far as pure market value where the investors who are semiing out are kerped. what to you start

i think morgan stanley doesn't have revenue growth. his point on wells -- there's a lot of banks that are cheap. the regionals are really cheap and they have a little bit less headline risk i think. >> let's not forget to remind all of you, jim gorman, the ceo of morgan stanley will be on with maria at 4:30 on "the closing bell." it will be his first interview since the whole first facebook ipo. coming up, will the facebook tdd# 1-800-345-2550 or use predefined ones. tdd# 1-800-345-2550 and i can trade wherever i want, tdd# 1-800-345-2550 whenever i want. tdd# 1-800-345-2550 the kicker? tdd# 1-800-345-2550 i pay $8.95 a trade. tdd# 1-800-345-2550 that's a deal in any language. tdd# 1-800-345-2550 open an account tdd# 1-800-345-2550 and trade up to 6 months tdd# 1-800-345-2550 commission-free. tdd# 1-800-345-2550 call 1-800-790-7706. >>> welcome back to "halftime," i want to show you this chart. erasing nearly all losses on reports the imf is considering contingency plans, they've met on that fact. can you certainly see a move on the eu

the stock could have a tough time if morgan stanley stops supporting the stock. the firm stepped in with support after the stock fell toward its $38 ipo price. and managers could decide to get out before going under water. and managing ceo scissors the exchange is humbly embarrassed by its bungling of its debut but he said there's no indication the nasdaq delay contributed to the underwhelming performance. nasdaq's board set on saturday. the sec is investigating. greifeld spoke with maria bartiromo last night and she'll be joining us. and yahoo! is selling part of its stake it in ali baba. the cash infusion could appease shareholders looking for dividends, acquisitions or share repurchases. >> and now to the other morning deal news. biggest u.s. operator of dialysis clinics buying health care partners for $4.4 billion in class and talk. also this morning, a chinese conglomerate buying amc entertainment holdings for $2.6 billion. amc's headquarters will remain in kansas city and the operations expected to remain unchanged, but there could be chang changes. we'll t

morgan stanley was the lead underwriter. there are concerns their analyst lowered his second quarter and full-year projections just before the ipo. morgan stanley for their part are saying we complied with all regulations. we have done nothing. but massachusetts secretary of the commonwealth just wants to check with morgan stanley what happened. and as such, have issued a subpoena. what happened was that on may 9th, before the ipo, facebook issued just a change to its revenue outlook on the back of slower revenue potentially over on mobile devices. now following this on the may the 9th, morgan stanley's underwriter, along with other analysts, just lowered some of their expectations about this. there were concerns about which investors understood was going on in terms of the revenue at facebook. morgan stanley strenuously denying any wrongdoing. >> steve, quickly, before i let you go, does this stock price turn around? down 18% in just a couple of days is remarkable. what changes this dynamic here? >> look. let's understand s

only morgan stanley knows for sure how it is making out. the truth comes out sooner rather than later. thanks so much for being with me on the closing bell. we will see you tomorrow and hope you will follow me on twitter and google plus. stay with us because fast money begins right now. have a

everyone should of them. >>> massachusetts officials today subpoenaed morgan stanley over the analysts face book reports in washington sec chairman mary schapiro said there are issues that we need to look at specifically with respect to face a vote banks underwriting the stock offering generally are barred from issuing recommendations until 40 days after it starts trading and any information given now must be given to all investors. >>> this was supposed to be the chance to restore the public's faith in the public markets and wall street and instead has been a reminder of everything people suspected about public markets and wall street. >>> morgan stanley stevens night said it acted in compliance with all applicable regulations but one veteran of the ipo market called this a travesty of this book he said has become a laughingstock. it was with coke cbs five. breaking news now coming out of the tahoe area and wild fire burns near salt lake tahoe and has destroyed several homes neda iranpour for a is in douglas county nv announced with the latest. >>> we're live in the town of wellington

so that's why i am short morgan stanley. however, if there is a positive resolution to the europe crisis and i don't expect one until after the greek elections, i don't want to get completely short. that's why i am on goldman. i think it is the best managed investment bank out there. >> steve weiss with a trade on the banks. >> no, i don't like it. i am short goldman. i was short more goldman. i covered some yesterday. it looked like it was trying to get off the matt and closed on its heels. the charts of morgan and goldman stanley look worse than jpmorgan. if i was long jpmorgan, i might hedge that by selling goldman stanley. the rhetoric that they are receiving from politicians is awful. they are not being able to make money in the traditional ways. to compare them to bank share prices from several years ago, they are completely different animals and viewed at the tip of the spear and the whole risk asset spectrum. i don't like the banks. >> at what point do you look at them and say, maybe they are oversold. weiss makes a

>>gabe: both facebook and morgan >>stanley: have issued statements saying that they have done nothing wrong. thought, >> most stock exchanges are now electronic. from an investor's point of view i do not think it makes any difference on which your stock is traded. fifth of >>vicki: at morgan >>stanley: has agreed to compensate investors who overpaid for the facebook ipo. they did not explain what amount constituted overpaid. coming up, violence in the streets and details into a growing number of fights on the sidewalk in streets of san francisco and then posted on line and what authorities are saying about the violent acts. [ creaking ] [ male announcer ] trophies and awards lift you up. but they can also hold you back. unless you ask, what's next? [ zapping ] [ clang ] this is the next level of performance. the next level of innovation. the next rx. the all-new f sport. this is the pursuit of perfection. on a growing trend of street fights recorded on cell phones. we have muted the sounds of the video is graphic. >>j.r: the video speaks for itself, to amend duking it out in san franc

regulators are looking into a possible misconduct in morgan stanley. they want to note of morgan stanley passed along to permission from an analyst to clients just before the shares started trading. the top securities regulator for massachusetts is is even subpoenaed at morgan stanley over the procedure. a morgan stanley says they've followed proper procedure. >>> and the nasdaq fell aid. >>> yes there is right, and new roadster mosque of the yacht says they're working together to create a new convertible. >>> it's now up to voters in san jose if they want to raise the city's minimum wage. the city council members voted last night to increase the pay. the current minimum wage is not in line with the current city's living costs. >>> the voters still not passed governor brown's tax measure. the governor gave the schools option to cut the 15 days before the measure. will take cover, or say i do. >>> a twister aired nearly crashed in an outdoor wedding. you could see the twister for me august side behind the couple. nearly half a dozen tornadoes touchdown

they alleged that in the run-up to the ipo, facebook warned morgan stanley that things may not be as rosy as they thought. the bank is accused of passing on that information only to a select group of its wall street friends, instead of telling all would-be investors. >> it is not clear whether anybody broken the rules. what is clear is that if they did not break rules, the rules themselves are very unfair, because they give much better information to big institutional investors than they did to small investors. what did they actually broke the rules will probably be mitigated now. we will see what the conclusion is. >> it is highly unlikely fewer people will use facebook as a result of the ipo, but its reputation may have taken a nod. facebook wants to become the medium for targeted advertising on a social network. losing investors billions in two or three days may scare off some would-be advertisers. >> to see the share loss since going on, to have a share price that was ramped pre-ipo and went down after words, that is obviously not good from a brand point of view. secondly, potent

and morgan stanley's job, we should recognize, is to maximize the proceeds to the issuer. so to some extent i find that part of the commentary a bit baffling. but back to the information asymmetry issue, what is being suggestd is that perhaps in the last minute there was some information that might have been given to analysts at morgan stanley and a couple of other underwriter firms that might havhave enabled them to revise their evaluation models thereby making institutional investors pull back on their demand for the i.p.o. now, i find it extremely surprising that something like that would happen, but we don't know what the facts are. but i will say this: facebook filed many amendments to its prospectus right up until the final date of the i.p.o., which i think was may may 18 and they explicitly stated that their revenue has been declining from 155% all the way down to 45% and that they continue to see declines. now, it's not clear to me what an investor looking at that would have guessed other than to say, well, they expected to decline further. so it's a bit of a fine

let's talk about the chart of morgan stanley. what it's telling you and how much of the europe problem is priced into the stock. >> absolutely. the first chart we have is morgan stanley versus the european banks. it's a five-year chart and what is amazing to me, which is really incredible, is how closely the two tracked each other. and anyone who thinks that the interconnectiveness of the financial system should take a look at this and this is a second chart for morgan stanley and you can see that euro crisis lows in the fall of 2007 retesting that level now and morgan stanley is going to follow them. even though it's oversold, they are signaling that the chain is weak. >> if you're on the other side of that, do you not worry about the european exposure here? >> well, when i look at morgan stanley, what i see is a great investment. a good entry point for that. i can't tell you whether it's going to be a good month, week, quarter. that's going to be very macro dependent. morgan stanley has shown a correlation to europe. really the

the state of massachusetts has issued a subpoena to morgan stanley. wanting to know more what analysts told elite investors. morgan stanley said it followed the same as it follows for all of its ipos. there is enough blame to go around. the nasdaq admits it wasn't ready to start trading the high volume of facebook stock. glitch in the caused a half hour delay in trading. it isn't a total bust. the ipo earned facebook $16 billion. reporting report live in menlo park noelle walker. >>> some terrifying moments for santa rosa residents after a truck smashed into their apartment building as they were sleeping. this happened on sunset avenue about 11:30 last night. six people were inside the apartment at the time including three children. look at these pictures. the truck crashed into a bedroom that is where people were sleeping. luckily no one was hurt in this. the driver of the truck took off after that crash. >> the vehicle did significant damage to the structure. the engine captain called out to stabilize the building. >> police are searching for the dr

now federal regulators are examining morgan stanley for how it handled the affair. matt jab low shows how the debacle could have serious implications for both companies. >> reporter: it was one of the most widely anticipated initial stock offerings in recent wall street history. today it's one of the most criticized. >> this is a misadventure of epic proportion. >> reporter: facebook's stock price lost 9% today on the news that morgan stanley, the lead underwriter warned several that it was you a cutting its projections. >> if there was voices of skepticism, i think everyone should have heard those. >> reporter: it's a black eye for both morgan stanley and facebook that could have not only serious financial implications for the companies. >> it's not good news for the stock. >> reporter: but legal implications as well. the state of massachusetts today subpoenaed morgan stanley for records regarding facebook and the chairman of the scc had this to say. >> there are irks that we need to look at specifically with respect to facebook. >> that was matt jablow reporting.

morgan stanley telling cnn in an e-mail statement "morgan stanley followed the same procedures for the facebook offering that it follows for all ipos. these procedures are in compliance with all applicable regulations." facebook shares have already dropped 18% from the debut of the ipo on friday. >>> strong on foreign policy but weak on the economy. that is how voters feel about president obama according to the latest nbc news/"wall street journal" poll. 52% disapprove of the way he's handle the economy, only 43% approve. only 33% expect an improvement next year. that's down seven points since march. president obama does get high marks from voters on his handling of the wars in iraq and afghanistan. >>> a wildfire in nevada. more than 700 homes destroyed. hundreds of homes, structures, and utility lines are threatened at this moment. >>> a woman is undergoing a mental evaluation this morning after causing a scare on an international flight, saying she had some device implanted inside of her. she was on board a u.s. airways flight from paris to north carolina yesterday when she made tha

wait until you find out morgan stanley's role in this. it's actually shocking. no, this is shocking.rmore, colin powell takes mitt romney to a wood shed. >> come on think. that isn't the case. i don't know whether mitt really feels that-- >> or is it someone said it. >> i don't know. >> cenk: is mitt romney's foreign policy team full of lunatics? yes, it is. we'll explain later in the show. plus the right wing media trying to pre-event a so-called race war. >> consider what would have lapped if a mob of white men descended on a car and beat up a black man and a black woman. i don't have to say any more. you know what would happen. >> cenk: i can't wait to tell you that story and the really facts that the 6:00 news is trying to keep from you. you know what time it is? obviously go time. ♪ >> cenk: well, a famous ipo and the price is going to go up, and then wang wang, wang, it didn't turn out that well. they did raise $16 billion and it turns out that some people made a tremendous amount of money from it, but not everybody. you of course you remember the hype a

just said, what could happen to morgan stanley? >> we don't know if morgan stanley is guilty. >> what if? >> you wonder if anything could happen after we saw what happened with the financial crisis. has any bank been punished? let me just say this. this is a big legal gray area. public companies are required to let all investors know this information ahead of time but some security law experts say it may not apply to information that facebook gave to underwriters before going public so in that case if that's the case, carol, they would not have the obligation to give this information out all at the same time even to the little guy that maybe morgan stanley wasn't in the wrong here because maybe they weren't obligated to give out this information all at the same time. clearly it looks really bad pr-wise. it does little to quell what upsets everybody that the system is rigged against the little guy. you have to wait to see all of the details come out on this and s.e.c. is investigating. >> i don't know. i think that if they did do th

that broker meeting happening right now at morgan stanley. we'll get you the details as we get them. >>> banking has become a game of survival on both sides of the atlantic. craig overlander is with me. he joins me next on an exclusive interview on the business and game plan if europe gets uglier. later in the program, the head of td bank joins me. we're talking about his take on the u.s. housing market. making a big push into the mortgage market right here. how long can it keep up all extra perks it continued like sunday hours. >>> goldman sachs finally leaps into the twitter sphere. does going on twitter make goldman more likable and transparent? send us a tweet @cnbcclosingbell. you're watching "the closing bell." for a hot dog cart. my mother said, "well, maybe we ought to buy this hot dog cart and set it up someplace." so my parents went to bank of america. they met with the branch manager and they said, "look, we've got this little hot dog cart, and it's on a really good corner. let's see if we can buy the property." and the branch mana

morgan stanley is under fire over facebook's ipo. there's accusations that the bank shared a negative report about facebook with select investors while leaving the public in the dark. >>> mitt romney edging closer to the republican presidential no, ma'am nation after primary wins in kentucky and arkansas last night. he'll likely make the nomination official next week. >>> philadelphia police are looking into whether someone shot a flare in the sky at the airport. a crew was about to land when they reported seeing a flash. one of the runways was shut down. >>> let's take a look at today's weather. showers and thunderstorms for much of the east coast and from mississippi to new orleans. stormy from minneapolis to sioux falls. showers in the northwest. >>> and finally this morning, the winner of "dancing with the stars" season 14 was, anyone's guess up to the very last minute. >> and when they announced the name, it was pandemonium. here's abc's george pennacchio. >> donald and peta. >> reporter: football star, donald driver, scored the

morgan stanley getting whacked for its handling of the facebook ipo. will it get punished as hard as jpmorgan after that bungled trade there? and, playing the defense sector in an era of private space flight. see you on "power" top of the hour. back to scott and "fast half." >> we will see you then. >>> next trade, japan's credit status downgraded in the face of growing debt. as a result the yen having its worst day against the dollar in over a month. so how can you trade japan's downgrade? let's bring in camilla sutton with today's money in motion trade. nice to see you as always. >> great to be here. >> i know everything that's going on in europe but you have your eyes on the yen today and rightfully so. >> absolutely. i think a lot of people do. the funny thing about the yen the fundamentals are horrible. we now have a credit downgrade in that credit downgrade was really the size of the debt of 240% of gdp. a very leisureely pace to improving that. the fundamentals are negative. we have the boj meeting tonight but still the trend in dollar/yen in te

wait until you find out morgan stanley's role in this. it's actually shocking. no, this is shocking. furthermore, colin powell takes mitt romney to a wood shed. >> come on, think. that isn't the case. i don't know whether mitt really feels that-- >> or is it someone said it. >> i don't know. >> cenk: is mitt romney's foreign policy team full of lunatics? yes, it is. we'll explain later in the show. plus the right wing media trying to pre-event a so-called race war. >> consider what would have lapped if a mob of white men descended on a car and beat up a black man and a black woman. i don't have to say any more. you know what would happen. >> cenk: i can't wait to tell you that story and the really facts that the 6:00 news is trying to keep from you. you know what time it is? obviously go time. ♪ >> cenk: well, a famous ipo, and the price is going to go up, and then wang, wang wang, it didn't turn out that well. they did raise $16 billion and it turns out that some people made a tremendous amount of money from it, but not everybody. you of course you remember t

morgan stanley news burns in terms of transparency. it will be a political gong show. >> you get to options action and follow the show on twitter to get constant trade updates. how much should you fear america's fiscal clip. they are separating fact from fiction when it comes to the economy with the chief economist. he is up after this. if you are one of the millions of men who have used androgel 1%, there's big news. presenting androgel 1.62%. both are used to treat men with low testosterone. androgel 1.62% is from the makers of the number one prescribed testosterone replacement therapy. it raises your testosterone levels, and... is concentrated, so you could use less gel. and with androgel 1.62%, you can save on your monthly prescription. [ male announcer ] dosing and application sites between these products differ. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or, signs in a woman which may include changes in body hai

and morgan stanley's job, we should recognize, is to maximize the proceeds to the issuer. so to some extent i find that part of the commentary a bit baffling. but back to the information asymmetry issue, what is being suggestd is that perhaps in the last minute there was some information that might have been given to analys at morgan stanley and a couple of other underwriter firms that might havhave enabled them to revise their evaluation models thereby making institutional investors pull back on their demand for the i.p.o. now, i find it extremely surprising that something like that would happen, but we don't know what the facts are. but i will say this: facebook filed many amendments to its prospectus right up until the final date of the i.p.o., which i think was may may 18 and they explicitly stated that their revenue has been declining from 155% all the way down to 45% and that they continue to see declines. now, it's not clear to me what an investor looking at that would have guessed other than to say, well, they expected to decline further. so it's a bit of a fine li

>> it is a little unseemly but morgan stanley's clients pay for that access to their analysts so there is a reason why they were talking to those big clients. there are a lot of accusations flying out there and a lawsuit now. there is no evidence there was any malfeasance at the underwriter based on the information we have now. >> the mistake was is mispricing the offering. obviously facebook is their are client, too, and they were trying to raise as much upon any as possible for facebook. when you have an ipo it is not good for anybody for the stock price to fall afterwards. bad for the company and reputation and bad are for the underwriter and wad for the investors. >> it is not clear how much of the decline since the opening until now is the result of pricing it the wrong way and how much is the nasdaq botch on day one. and keep in mind this is a technology company you are buying it not on fundamentals but because you believe it is the media platform of the 21st century. a big technological glitch on its debut is a big psychological factor. >> if the 11% fall on the first day was du

has to come in to morgan stanley and demand the heads of everybody who has involved in this deal. >> morgan stanley insists it followed the same procedures for the facebook offering it follows for all ipos. already, the lawsuits are mounting. facebook says the suits are without merit and we'll defend ourselves vigorously. today, the senate banking committee began asking questions as massachusetts subpoenaed the morgan stanley's internal documents, all of it, further undermining faith in wall street. >> it looks pretty clear that main street believes wall street is low on scruples and high on get rich quick schemes that are often at the expense of the mom and pop investor. >> all of this as congress considered tougher oversight of the financial sector. something wall street has been lobbying hard to avoid. tom costello, nbc news, washington. >> let's talk about this more with andrew ross sorkin. "new york times" journalist, author of the book "too big to fail" and co-anchor, of course, of nbc's crosswalk box. he's with us in the studio tonight. correct me if i'm wrong. is this a case

morgan stanley says about the same. congressional committees in the house and senate are looking into the launch of facebook's ipo. joining us this morning, connecticut's former attorney general, where he sued companies like countrywide financial, one of the major ones we remember. nice to have you with us. >> thank you. >> the key question, of course, were some investors given some information that other investors were not given? what potentially was done that was illegal? >> what potentially was done essentially was that material information about revenue earnings, forecasts about the growth of the company was shared with some investors, big institutional investors, clients who were favored by the analysts of those underwriters, like morgan stanley, and not given more broadly to the retail ordinary investor who obviously was seeing and reading the hype. this was one of the most ballyh ballyhooed prospectuses in recent history. the question about actual revenue and earnings was shared selectively with the few. >> faceb

facebook and morgan stanley were hit with a class-action lawsuit today claiming morgan stanley provided false and misleading information and failed to disclose to all investors that facebook's revenue dropped because more people were using its mobile app and viewing fewer ads. facebook says it will fight the suit. the securities and exchange commission also has launched an investigation into morgan stanley's role in the ipo. right now facebook shares are trading at about $32, after opening on friday at $38. >>> we're heading into another major bay area bridge closure. why you may have to plan ahead for your commute this weekend. and you may have noticed a cooler temperature out there. but mark says there is something unexpected in the bay area forecast. and the close call for a bay area family when a truck crashed right through a building where people were sleeping. ♪ [ male announcer ] for our families... our neighbors... and our communities... america's beverage companies have created a wide range of new choices. developing smaller portion sizes and more low- & no-calorie beverages.