U.S. House And Senate Committees Reviewing Facebook IPO Issues

Posted on May 24 2012 - 7:27am by Editorial Staff

Seems Facebook IPO tragedy hits US congress also as Reuters reports that U.S. House and Senate committees that oversee financial sector matters are planning to look into the issues surrounding Facebook Inc’s initial public offering. Sean Oblack, a spokesman to the Senate Banking Committee, said the review will focus on “issues raised in the news” and that staff will be conducting briefings with “Facebook, regulators and other stakeholders.”

Marisol Garibay, a spokeswoman for the House Financial Services Committee, said “While no hearings specifically focused on this IPO are planned at this time, the Committee will have hearings over the coming weeks where this topic is likely to be raised.”

Senate Banking Committee member Sherrod Brown, a Democrat, in a separate statement called on the SEC to probe whether or not the banks underwriting Facebook’s IPO violated any securities laws. “Effective capital markets require transparency and accountability, not one set of rules for insiders and another for the rest of us.”

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