SEC scrutiny prompts Goldman to take Facebook offering abroad only

Widespread media attention prompted the government to begin looking into whether Goldman was violating that standard. 

The firm said in a statement, according to The New York Times: “In light of this intense media coverage, Goldman Sachs has decided to proceed only with the offer to investors outside the U.S. 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 firm also noted that the decision not to proceed in the U.S. "was based on the sole judgment of Goldman Sachs and was not required or requested by any other party." 

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

The SEC inquiry had also centered on whether the structure of the deal was legal. 

The investment vehicle Goldman had created for Facebook would have permitted hundreds of investors to sign on without forcing Facebook to disclose its financial results.

Normally, companies must disclose their financial results when they hit the 500 investor mark.