Goldman, Facebook, SEC
17th January 2011
Goldman Sachs will offer the chance to invest in Facebook only to its clients outside the United States, the New York Times reports.
Advocates of a strong Securities and Exchange Commission, or those who believe that at $50 billion Facebook is overvalued, will perhaps see this as a success. American investors are protected from investing in Facebook, while foreigners who lack SEC protection are left undefended against Goldman Sachs and Facebook.
Critics of a strong SEC, or those who believe that at $50 billion Facebook is a bargain, will perhaps see this as a disaster. American investors are prevented from investing in Facebook, while foreigners are allowed to. And Facebook is deprived of American capital that it would have otherwise been able to raise.
January 18th, 2011 at 15:35
They probably forgot who bailed out the company when it had to go through a very difficult period. And now as a sign of gratitude US investors are excluded from the whole system of buying shares.