Photo: Instagram via Heidi Moore
Maybe you lost this in the New Year’s shuffle like we did, but the Wall Street Journal blog, Deal Journal put out its list of the biggest losers of 2012 and almost all of them are Wall Streeters.There are only 4 people/companies on the list, and three of them come from Wall Street. The list starts with Jamie Dimon (citing the $6 billion trading loss in JP Morgan’s chief investment office, of course), and then moves on to Facebook, Steve Cohen and his hedge fund SAC Capital, and then finally trading firm Knight Capital.
To be fair, one could argue that Facebook is also a story of Wall Street failure because Deal Journal cites the company’s IPO disaster as the reason for presence on this list. So of course, the company that took the company public gets a shout out.
From Deal Journal:
It was the second-biggest IPO in U.S. history and Mark Zuckerberg and Co. were made instant billionaires by the $100 billion valuation. But Facebook fell for its own hype. The company and its lead underwriter Morgan Stanley overestimated the demand for the offering, increasing both the number of shares in the offering and the price just before the IPO. The fallout has been severe, no matter where the blame should lie. As shares slumped, regulators have fined the banks and confidence in the IPO system and markets in general has suffered.
And it wasn’t just Morgan Stanley that rode the hype of the IPO deal either. JP Morgan flew the Facebook flag at its office (as you can see above) had a huge banner welcoming in the company on IPO day, and even had its bankers rocking Facebook jackets.
So instead of Wall Street claiming 3/4 of 2012’s fail spots, it could be fair to say that it gets something like 3.2/4.