Goldman Sachs bans US investors from buying Facebook shares
Goldman Sachs has banned US investors from buying shares in Facebook. The investment bank earlier this month purchased a $450m stake in the social network and set up avenues to allow its clients to buy a further $1.5bn of the company's shares.
Yesterday, Goldman Sachs blamed the level of media coverage the original deal had generated for its decision to ban US investment. Facebook's shares will still be offered to clients outside of the US.
In a company statement printed in the Telegraph, the bank concluded that “the level of media attention might not be consistent with the proper completion of a US private placement under US law”.
Last week Goldman Sachs released a 67-page business standards report where it pledged to do more to ensure that its clients were “at the heart of the firm's decision-making, thinking and committee governance, both formally and informally”.
Earlier today Facebook announced that it would not be sharing user's addresses and mobile numbers to third party developers following an outcry over the last few days since the initial announcement of the plan.