Goldman Sachs' Facebook investment U-turn

Goldman, which recently invested US$450 million into the social network company, originally marketed the investment to its wealthiest clients.

According to media reports, Goldman has now u-turned on the offer after the US Securities and Exchange Commission opened an inquiry to see if widespread media coverage of the private investment had broken the law. Under federal and state regulations, private offerings are prohibited from general solicitation and advertising.

It is believed the bank will now proceed with the offer only to investors outside the US.