…and people think that ‘vampire squid’ analogy was unkind? Americans know this ‘special investment vehicle’ is another financial boondoggle that will hang investors out to dry while raking in billions for Goldman Sachs.
Open wide, Europe and Asia, the blood funnel will be inserted very soon.
“Goldman Sachs said it will limit its private placement of shares of social networking site Facebook to investors outside the United States, citing “intense media coverage,” according to the investment bank.
“In light of this intense media coverage, Goldman Sachs has decided to proceed only with the offer to investors outside the U.S.,” the company said in a statement provided to Reuters.
“Under U.S. securities law, if a company’s private shares are held by more than 500 holders of record, the company is required to register with the SEC and file public disclosure statements. But the rules generally define the term “record holder” as the name displayed on the company’s stock record, and not the beneficial owner of the stock.
“That means firms like Goldman Sachs can potentially skirt public disclosure rules through the use of a special investment vehicle. These funds can offer numerous investors the opportunity to buy stock, but the shares are all listed in the name of Goldman Sachs and only count as one shareholder of record.”