About 4 minutes into this clip, Wedbush Analyst Lou Kerner asks securities lawyer Mitchell Littman what went wrong with Goldman Sach’s Facebook stock offering earlier this year.
Littman’s explanation gets a little jargon-y but it’s the best and briefest we’ve heard yet.
The even-shorter version: All the media hubbub around the offering had Goldman lawyers worried the SEC would say the firm was actually advertising the deal – a no-no when it comes to private stock offerings.
Here’s the clip. Skip to 4 minutes in to hear Littman’s explanation: