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Goldman's Facebook Shares Too Hot For U.S.

In a curious turn of events, Goldman Sachs has chosen to exclude U.S. clients from the private offering of up to $1.5 billion in Facebook shares. In a statement sent to The Wall Street Journal, Goldman said it "concluded the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law." Goldman reportedly began notifying clients of its decision this weekend.

Goldman insists that the decision to limit the offering to "offshore" investors is not "required or requested by any other party," and the Securities and Exchange Commission in particular. Yet, as least one Goldman client was told the deal is being offered only to non-U.S. clients because of regulatory concerns, according to The Journal, adding: "Private placements like the Facebook deal are subject to strict SEC guidelines, and Goldman's statement Monday suggests that executives grew concerned that huge interest in the offering could expose the securities firm to regulatory vulnerability."

Read the whole story at The Wall Street Journal »

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