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Just more than a week after Goldman Sachs offered its most prized clients a chance to invest in Facebook, the firm on Monday withdrew the opportunity from clients in the United States because of worries that the deal could run afoul of securities regulations.
The decision is a considered a serious embarrassment for Goldman, which had marketed the investment to its wealthiest clients, including corporate magnates and directors of the nation’s largest companies....
...the Facebook plan is now likely to raise new questions about whether Goldman tried to push regulatory boundaries once again.
The firm planned to sell as much as $1.5 billion of closely held Facebook to clients of its private wealth unit.
“You would have thought that this was an issue from the start, they should have realized this up front,” said Peter Hahn, a lecturer in corporate finance at Cass Business School in London. “If I invited my 500 best friends to a party, would it be a secret? And the answer is no.” [businessweek.com...]
It's no accident IMO , but let's see ...
...if you are pursuing a private offering, the offering must remain private.
"We completely understand that clients are disappointed, and we are sorry about that," the Goldman spokesman said. "But our view was that it would not have been prudent for Facebook or for investors to have proceeded with the offer in the U.S."
Goldman Sachs sent $4.3 billion in federal tax money to 32 entities, including many overseas banks, hedge funds and pensions, according to information made public Friday night.