Archive for Friday, October 4, 2002

Report: Goldman Sachs improperly used IPOs

October 4, 2002


— Goldman Sachs offered shares of initial public stock offerings to executives of at least 20 companies whose companies had steered lucrative investment-banking business to the firm, according to published reports Thursday.

Citing information released by congressional investigators, The Wall Street Journal and The New York Times reported that executives at two companies that had significant business with Goldman Margaret Whitman, chief executive of eBay Inc., and Yahoo Inc. co-founder Jerry Yang each received stock in more than 100 IPOs.

They quickly sold many of the shares at a profit, according to data provided by the House Financial Services Committee.

Goldman spokesman Lucas Van Praag told The Times the data was "an egregious distortion of the facts.

"The suggestion that Goldman Sachs was involved in spinning or other inappropriate practices around IPO allocations is simply wrong," Praag said. "Goldman Sachs is not a retail firm, all our individual investors are wealthy."

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