Tuesday, October 18, 2011

Groupon's Red Flags Were Missed -- Sorkin - NYTimes.com

An ominous Groupon snapshot

All of this raises an obvious question: How did so many Wall Street firms desperate to underwrite the Groupon I.P.O. miss these warning signs when pitching such a sky-high valuation? Or did they just turn a blind eye?

“Underwriters are supposed to be gatekeepers, not just a sales and marketing agent,” said Lynn E. Turner, a former chief accountant for the S.E.C. “Underwriters have gotten to the point of being cheerleaders. I question whether they are really fulfilling their obligation to investors.”

Groupon's Red Flags Were Missed -- Sorkin - NYTimes.com

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