No, the CEO made a bad deal with banks and is now using PR to shift the blame from himself to his bankers.
If everyone intrinsically knew that ZipCar was worth $30 then why did he sign a contract with the banks that allowed them to sell it for $18? Banks can't just a your company public on their own, they need the consent of the CEO and/or the board, when you sign this contract it outlines how the bank will take your company public.
If he didn't like that option he could always buy a shell listed on the exchange and do a reverse-merger. There are plenty of ways to take a company public and very few of them involve trusting GS to sell your company at whatever price they determine. If as CEO he allowed his company to be swindled out of $50 million he should resign in disgrace. He's so ingrained in the sausage making process he himself has been banned from trading.
As an aside after how badly GS and JPM fucked over the entire world it should give one pause as to whether you'd sign a contract with any entity who had demonstrated such moral hazard. They're called banksters for a reason.
Also, if you take IPO stock there is a gentleman's agreement that you won't sell it for 90 days, so it remains to be seen how well these investors actually did.
Comments
No, the CEO made a bad deal with banks and is now using PR to shift the blame from himself to his bankers.
If everyone intrinsically knew that ZipCar was worth $30 then why did he sign a contract with the banks that allowed them to sell it for $18? Banks can't just a your company public on their own, they need the consent of the CEO and/or the board, when you sign this contract it outlines how the bank will take your company public.
If he didn't like that option he could always buy a shell listed on the exchange and do a reverse-merger. There are plenty of ways to take a company public and very few of them involve trusting GS to sell your company at whatever price they determine. If as CEO he allowed his company to be swindled out of $50 million he should resign in disgrace. He's so ingrained in the sausage making process he himself has been banned from trading.
As an aside after how badly GS and JPM fucked over the entire world it should give one pause as to whether you'd sign a contract with any entity who had demonstrated such moral hazard. They're called banksters for a reason.
Also, if you take IPO stock there is a gentleman's agreement that you won't sell it for 90 days, so it remains to be seen how well these investors actually did.