Link: Lack of confidence hits IPOs
SEC chairman Harvey Pitt told regulators at the New York Stock Exchange and the National Association of Securities Dealers to broaden their review of IPO procedures.
The proposals for tougher regulations come amid concerns that the reforms currently being contemplated will not be enough to curb abuses by investment banks.
Wall Street banks are being accused of distorting the market for new shares in favour of their clients and in order to earn more business. Yesterday it was revealed US regulators are investigating ties between investment bank Salomon Smith Barney and bankrupt telecoms firm Global Crossing