Michael Moritz (“Investment banks lose their stranglehold on IPOs”, August 19) skirts around another awful sideshow concerning initial public offerings: how US banks control access to management so that only “their” analysts and favoured clients get to question the company. In the UK, this “closed shop” was ended. Such a move would be welcome in the US.
There is no greater example than IPOs of how conflicted — and misleading — investment bank research can be. Lyft and Uber both had more than 20 banks in their “syndicates”. Want to guess how many rated either — now both 20 per cent-plus below IPO price — a “sell”?
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