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Last month, a Baghdad newspaper published the list of companies that got allocations, prompting a chorus of denials.
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But it is the smaller community banks like Independent that are seeing the largest number of investments, with 186 banks so far getting allocations of less than $100 million.
More important, many of those stocks soared the first day of trading, providing large instant profits for those lucky enough to get allocations in the offerings.
The investment banking practices of spinning, offering allocations to executives at other companies in hopes of winning future business, and laddering, or requiring buyers to place aftermarket orders at higher prices to get allocations, are now clearly banned.
Perhaps some investors could make the case that they would have gotten allocations if those paying kickbacks had not gotten more shares as a result, but the amount of such claims would seem to be limited.
"Selling insiders, venture capitalists and institutions able to get allocations are making out like bandits, and the public is being fleeced," says Hickey.
Since April 1, Morgan Stanley Wealth Management financial advisers have seen their compensation cut by as much as 50percentt on sales of new issues to clients who use the firm primarily to get allocations of those securities.
"We all bought from those people who got the allocations," he said.
Despite a general mood of budgetary austerity, the army demanded and got special allocations to meet the new threat.
Although the water rationing was intended to reduce MWD deliveries by 15% overall, customers got different allocations that were calculated according to a complex formula.
So we got no allocation".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com