Oversight Chair Wants SEC To Examine 'Flawed' IPO Process

Law360, New York (June 21, 2012, 9:15 PM EDT) -- The Republican chair of the House Oversight Committee on Tuesday demanded that securities regulators examine the initial public offering process in the wake of Facebook Inc.'s botched IPO, claiming the securities laws governing IPOs are flawed and outdated.

Rep. Darrell Issa, R-Calif., claims the Securities Act of 1933 is “fraught with conflicts of interest and incentives to misprice shares,” because it gives underwriters substantial discretion to dictate the pricing of shares.

“The Facebook IPO taught us that, at a minimum, the IPO process suffers substantial flaws,”...
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