IPOs Need Cigarette-Style Warnings, Banking Committee Hears

Law360, New York (June 20, 2012, 1:32 PM EDT) -- Federal securities regulators can avoid a repeat of Facebook Inc.'s troubled initial public offering by implementing risk disclosures like cigarette-box-style warning labels for investors, a panel of industry experts told a Senate banking subcommittee on Wednesday.

The Housing and Urban Affairs Subcommittee on Securities, Insurance and Investment heard recommendations from IPO experts at a hearing that focused largely on what went wrong during Facebook's May 18 IPO. The hotly anticipated event was disrupted by technical errors at Nasdaq and shrouded in controversy, with angry investors claiming...
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