“It was supposed to be Wall Street’s hottest tech deal in years: the private offering of as much as $1.5 billion in shares of Facebook Inc… Goldman bankers burned up the phone lines in the first week of January, pushing many of their best American clients to invest in the deal. And then, on Sunday and Monday, those same advisers were on the phone with those same clients with some bad news. They wouldn’t be getting any Facebook shares, after all… Goldman worried that the media spotlight surrounding the private offering might violate U.S. securities laws and expose the firm to legal action.”
What do you think?
How would you feel if your bank promised you something it couldn’t deliver? How much would you risk to be one of the first investors in a hot company like Facebook?