The SEC is reviewing Goldman Sachs as private companies can only have 499 investors before being required to disclose financial data, whereas the investment bank wants to create a special purpose vehicle to allow any number of clients to invest up to another $1.5bn in Facebook under just one investor's name.
The US Securities and Exchange Commission (SEC) has initiated an early-stage review of investment Goldman Sachs’s $450m investment in social media group Facebook.
Goldman Sachs contributed $450m and Russia-based investment company Digital Sky Technologies (DST) contributed $50m.
The SEC is reviewing Goldman Sachs as private companies can only have 499 investors before being required to disclose financial data, whereas the investment bank wants to create a special purpose vehicle to allow any number of clients to invest up to another…
