BBC News - Facebook: Goldman Sachs excludes US investors from deal
Goldman looks very shady in this deal. They are essentially getting people to invest in Facebook without actually being required to give investors details about Facebooks financials. That makes it easy to sell an overvalued company (50 billion anyone?) for quick buck along with brokerage fees before the whole house of cards falls apart. That sort of scam was one of the key players in the mortgage security disaster.There has been speculation that the investment plan might breach US regulations designed to restrict share trading in private companies.
Wealthy investors are queuing up for a slice of Facebook, the world's largest social networking site, which reportedly has a market value of $50bn.
But the Securities and Exchange Commission (SEC) is watching closely, amid concern that by staying private Facebook is able to by-pass public disclosure rules..