Way too much has been written about the Facebook IPO debacle – the same mistakes, incompetence, and outright deception chronicled in story after story. No new news, if you will.
One interesting angle, however, that a handful of writers are picking up on is the impact on the individual, retail investor going forward. Jim Cramer, for example, had some interesting comments along this vein:
“…the individual investor was the huge loser. And he has stayed the biggest loser…[I]t is a little too late to help the individual who was the mainstay of our deep markets. Just a shameful exercise all the way around, including the admonishing of the buyers who believed that the bankers had it right when they most certainly had it wrong.”
Out of curiosity, we thought we would look at the big online brokers and see how they are talking about these issues with customers and prospects. After all, the likes of Schwab and Scottrade grow their business on the backs of retail investors.
The brokers need to keep adding more accounts to the rolls every day (assets on hand), and they need to get these customers to trade frequently (commissions). They should be doing all they can to let folks know that the Facebook IPO was an anomaly, and does not signal the end of investing in individual stocks, no?
Here’s the updated, sincere content on the websites and Facebook pages of the “big four” to keep traders calm:
- Scottrade – nothing
- E*Trade – nothing
- Schwab – nothing
- TD Ameritrade – nothing
Only Schwab made mention of the problems on the day of the IPO (on its Facebook page – how ironic). Just another day at the office for all four companies, otherwise.
Unbelievably, Schwab is currently running a promotion called “Oh Chuck, I Blew My Cash,” where contestants can “confess their most regrettable purchase.”
Seems like Facebook IPO shares would be high on the list.