Goldman Sachs Group, Inc. (NYSE:GS) has decided to exclude U.S. clients from investing in Facebook through the $1.5 billion investment vehicle that the company has created. The reason why Goldman changed their mind about allowing U.S. clients to invest in Facebook due to the media attention that the company was getting.
In a statement to The Wall Street Journal, Goldman Sachs made the decision after executives at the company “concluded the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law.”
The SEC did not make the request to prevent U.S. firms from investing in Facebook said the New York based investments company. But there is a rumor that a fear of regulatory concerns was one of the motives behind preventing U.S. companies from investing in Facebook through the special investments vehicle. It is believed that so far the investments vehicle has attracted $7 billion worth of interest, especially from Chinese companies.