Goldman Sachs is going to exclude its U.S. clients from buying shares of its recent investment in the booming social network Facebook. The bank decided to go overseas because of intense media scrutiny surrounding its offering. The press coverage of the offer to its U.S. investors could be seen as a general solicitation or advertisement, which is illegal in a private placement. Plus, Goldman was close to getting cross-ways with the Securities and Exchange Commission as Facebook neared the 500-investor trip line that will force it to publicly release financial data.
Loading ...
Goldman Banishes US Investors From Facebook Party
Posted by: Rob Spiegel January 18, 2011 12:15 PMGoldman Sachs is going to exclude its U.S. clients from buying shares of its recent investment in the booming social network Facebook. The bank decided to go overseas because of intense media scrutiny surrounding its offering. The press coverage of the offer to its U.S. investors could be seen as a general solicitation or advertisement, which is illegal in a private placement. Plus, Goldman was close to getting cross-ways with the Securities and Exchange Commission as Facebook neared the 500-investor trip line that will force it to publicly release financial data.