Eric Talley and Robert Bartlett quoted in San Francisco Chronicle, May 23, 2012
“If I can demonstrate that something was false, I don’t have to also demonstrate that they should have known it was false,” said Eric Talley.
But by one reading of that rule, investment banks could share analysts’ guidance with clients before the date of the IPO, UC Berkeley assistant law professor Robert Bartlett said. Given these issues, it may turn out that Morgan Stanley and Facebook violated the spirit but not the letter of securities rules, Bartlett said.