Re: Daring Fireball Linked List: Goldman Invests in Facebook at $50 Billion Valuation

On Jan 3, 2011, at 12:59 PM, Bruce Geerdes wrote:

> http://daringfireball.net/linked/2011/01/03/facebook-goldman
>
> The New York Times:
>
> In a rare move, Goldman is planning to create a “special purpose  
> vehicle” to allow its high-net-worth clients to invest in Facebook,  
> these people said. While the S.E.C. requires companies with more  
> than 499 investors to disclose their financial results to the  
> public, Goldman’s proposed special purpose vehicle may be able get  
> around such a rule because it would be managed by Goldman and  
> considered just one investor, even though it could conceivably be  
> pooling investments from thousands of clients.
>
> It is unclear whether the S.E.C. will look favorably upon the  
> arrangement.
>
> Unclear, eh?

Meaning...they are evaluating how much money they can extract in a  
fine.  Fraud is a legitimate business model now.  Fines (i.e. payoffs)  
to the regulators are just a cost of doing business.

For example, see Angelo Mozillo...Countrywide exec...fined $67MM for  
fraud in their mortgage mess.   Nevermind that he personally made over  
500MM doing it.

Until we see jail time, the corruption will continue.

regards,
-Lance

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