Along for the ride

12 January 2017 By Jeffrey Goldfarb Follow @jgfarb

Bank regulators are unhappy with how Morgan Stanley and other advisers pitched a loan for the $70 bln ride-hailing app. Imaginative slicing and dicing of figures is an irksome investment-banking art. The Fed’s leverage guidance is also messy, however, for unprofitable ventures.

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Federal regulators criticized Morgan Stanley and other investment banks over a $1.15 billion loan they helped arrange for ride-hailing app Uber Technologies, Reuters reported on Jan. 10, citing unnamed sources.

The Federal Reserve and the Office of the Comptroller of the Currency took issue with the way in which the banks carved out Uber's more established operations from other parts of the business, thus making the company look financially healthier to potential investors, according to the report.

Goldman Sachs, Barclays and Citigroup also helped arrange Uber's loan last July.

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