Facebook. The IPO made a lot of people on Wall Street look silly.
But the Street’s not a place where people sit around and cry about their mistakes. It’s a place for solutions.
That’s why Sallie Krawcheck, the former President of Merrill Lynch Wealth Management, proposed three ways to prevent another disastrous IPO while she was on Surveillance with Tom Keene this morning.
First, she laid out what she saw as the real problem.
“What I’m really focused on,” said Krawcheck, “is what information was given to what investors at what point in time. Did the individual investor get the same information as the institutional investor?”
Tom Keene wasted no time in responding that they did not.
Fine. Here’s what Krawcheck said we need to do. She had three points:
- Take research analysts out of the process entirely — “they don’t talk to anybody, they’re not apart of the it (the IPO process).”
- OR you have research analysts write everything and make it completely public.
- AND have one roadshow and broadcast it everywhere so anyone can see it and everyone gets to hear the same questions and answers.
“No hoodies,” said Keene.
Yes. No hoodies.
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