Exactly. They never invested cash. It's all vapor. In other words, both banks lose nothing except the promise of future profits.

Both banks already made their money (and then some) on the IPO and associated fees. Now of course, assuming the banks had no knowledge of Groupon's true financial health; they did nothing illegal.

BUT ethically, brokers/traders have a responsibility to informed their clients when it's time to cash out. A lot of people made money off this deal. And lot didn't.

But Groupon, if what I'm hearing is true, is committing fraud. I mean, my god, are they cooking the books? Sort of reminds me of Enron. But only time (and many lawsuits later) will tell.