Goldman Limits Facebook Deal - Report

NEW YORK (TheStreet) -- Goldman Sachs' (GS) U.S. clients who were hoping to get a stake in Facebook are finding themselves out of luck.

The investment bank has decided to exclude U.S. clients from a private offering of as much as $1.5 billion in shares in the social network company, according to a report on The Wall Street Journal's Web site.

Goldman said in statement to the newspaper that it had "concluded the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law," the report said.

Citing anonymous sources, the Journal report said that the investment bank began informing clients of its decision on Sunday night in Asia, while clients in Europe and the U.S. were being informed Monday.

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In its statement, Goldman said its decision to exclude U.S. investors was not "required or requested by any other party," including the Securities and Exchange Commission, the report added.

A Facebook representative said Goldman "is in the best position to answer any questions," according to the report.

Goldman reportedly was flooded with requests from investors hoping to get a stake in Facebook, and the investment bank was hoping to collect lots of fees from the placement.

This article was written by a staff member of TheStreet.

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