WHOOPS: Morgan Stanley Blew Up Its Own Mutual Fund Investors In Zynga

We've already described how Kleiner Perkins, T. Rowe Price, and other big-name investors got burned in Zynga by investing in a late-stage pre-IPO private equity round. Normally, these late-state private placements are like shooting fish in a barrel: You get a sweetheart deal on some preferred stock just months before the IPO is sold to less-discriminating investors in the public market who.