Regulators to investigate Facebook flotation

Regulators are examining whether Morgan Stanley, the investment bank that shepherded Facebook through its stock market flotation last week, selectively informed clients of an analyst's negative report about the company before the shares started trading.

Rick Ketchum, head of the Financial Industry Regulatory Authority, the self-policing body for the securities industry, said the question is "a matter of regulatory concern" for his organisation and the Securities and Exchange Commission.