Goldman Sachs has decided to bar private U.S. clients from getting a piece of an oversubscribed $1.5 billion investment in Facebook because of “intense media attention,” the securities firm tells the Wall Street Journal Monday.
In a very brief article the Journal says Goldman has “concluded the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law.”
Notably absent in the statement is any hint that any legalities are involved. In fact it says the decision was not “required or requested by any other party,” including the Securities and Exchange Commission.
The SEC isn’t exactly on the sidelines, however. The Journal reported on Jan. 5 that the agency had begun an inquiry into whether the deal was designed to avoid rules aimed at protecting investors, citing “people familiar with the situation.”