It's complicated between The Securities and Exchange Commission (SEC) and Facebook.
According to reports, the SEC is reviewing whether or not Facebook is going against financial disclosure laws, following their sketchy $500 million investment deal with Goldman Sachs and Russian investor Digital Sky Technologies.
The SEC will make a decision as to whether they need to create new disclosure rules for private firms such as Facebook.
New Yorker investment writer John Cassidy is concerned because he believes that Goldman Sachs and Facebook are trying to avoid having to publicly report their financials by raising $1.5 billion from multiple investors, but treating them as one.
Given the fact that companies with more than 500 investors must publicly report their financials, Goldman and Facebook seem to have found a loophole, which will allow them to keep secrets from the public.
Tags: digital sky technologies, disclosure, facebook, goldman sachs, investory, john cassidy, securities and exchange commission