Goldman Just Says 'No' To U.S. Facebook Investors

A key to the success of Goldman Sachs GS has been its ability to anticipate major trends. For example, it did this during the 1980s by providing protection against hostile takeovers. Of course, then there was the move to proprietary trading. However, in light of the Obama regulations, Goldman has had to make another major shift. In fact, it looks like the firm is going back to its roots of providing top-notch advice on public offerings and M&A. And it looked like the firm was off to a good start when it structured its Facebook investment. The centerpiece was to provide $1.5 billion in stock to its wealthy clients. It was a unique way to get pre-IPO shares. At the same time, it allowed Goldman to get some juicy fees. Continue reading the article.