May 24th, 2012

Sen. Blumenthal: Facebook IPO was ‘supposed to be fair to the little guy’

Sen. Richard Blumenthal (D-CT) explains why he thinks that disclosure laws need to change in light of Facebook’s IPO lawsuits.

Sen. Blumenthal says, “There may be a need to change the law to make it more exacting so that the playing field really is fair and balanced and everybody gets the same information at the same time…. This IPO ironically was supposed to be very fair to the little guy, to the retailer. The Facebook hype was that the retail offering was supposed to be reaching out to the ordinary investor and made available to him or her. And second, here the institutional investors may have received that kind of red flag or early warning in ways that came much more directly from Facebook itself than customarily occurs with a company.”

Starting Point with Soledad O’Brien airs weekday mornings from 7-9am ET on CNN.