Photo: Time Magazine
Goldman Sachs has decided to bar US clients from buying Facebook stock, thanks to regulatory concerns, the WSJ says.Basically, it sounds like Goldman is worried the SEC will decide that Facebook’s offering is pretty much a private IPO, which is in fact what it is, and feel compelled to investigate to see if any rules have been broken.
And Goldman is powerful enough that it can thumb its nose at the SEC and say, basically, “don’t like our deal? Then, fine, we’ll sell it outside your jurisdication.” And the only ones who lose will be the people the SEC is supposedly protecting: US investors.
This, by the way, is what is happening more generally in this country, especially in the financial markets: Sick of heavy-handed regulation, some companies are just taking their business overseas.
Welcome to the Nanny States Of America.