New York-based global financial services firm Morgan Stanley's CEO James Gorman has defended the company's role in Facebook tumultuous initial public offering, saying it worked '100 per cent within the rules'.
Gorman also called the steep decline in the social networking giant's stock 'disappointing.'
He said 'speculation of nefarious activity'surrounding the social networking company''s IPO is untrue, The New York Post reports.
Contrary to some reports, he said, he wasn't 'aware of any dissent' among the underwriting firms regarding Facebook''s IPO price of 38 dollars a share.
On the day of Facebook's market debut, trading glitches by the Nasdaq postponed the start of trading in the company by 30 minutes.
Once trading began, many investors were unable to confirm their trades.
According to the paper, Gorman said the malfunctions caused 'unprecedented confusion and disarray' in the opening hours of trading in Facebook.
Morgan Stanley and fellow underwriters Goldman Sachs Group Inc. and J.P. Morgan Chase & Co. are facing criticism over their roles in the Facebook offering.
Investors have filed a civil lawsuit alleging the company and its underwriters failed to properly disclose changes to analysts'' financial forecasts while the deal was being pitched to investors.