Goldman Sachs excludes American clients from Facebook deal

Goldman Sachs (NYSE: GS) said that its American clients will be excluded from buying shares of Facebook through the financial services giant’s private placement mechanism.

The shares will be offered only to its non-U.S. clients, due to the "intense media attention" the proposed transaction has attracted since earlier this month when the relationship between these two entities was first publicized. At that time, Goldman announced that its top clients could participate in a $1.5 billion private financing related to Facebook.

"Goldman Sachs concluded that the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law," the company stated.

"We regret the consequences of this decision, but Goldman Sachs believes this is the most prudent path to take."

Goldman also said its decision "was not required or requested by any other party."

Analysts have speculated that by blocking U.S. customers from its Facebook deal, Goldman Sachs would avoid any further probes from the SEC which has been investigating the so-called secondary market for private companies.