Ethics of Goldman handling Facebook IPO

GOB's picture
Rank: Senior Orangutan | 417

Today I read the NY Times dealbook article comparing Zuckerberg to how Gates was pre-IPO and how similar they seem. One possible to be similarity is using Goldman as an IPO bookrunner. It's well documented that Goldman has invested $450 million in Facebook at a $50 billion valuation. So is it just me or is Goldman 1st) annuncing a valuation, thus setting a standard for future valuations, unethical and 2) should Goldman even be allowed to be te bookrunner?? Honestly how is this legal? Moral hazard much?