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The sole purpose of the entity they created was to allow more investors to participate than the SEC individually allows. When doing so attracts world-wide media attention, there is little difference between that and publicly selling the stock of a private company, which is not allowed.

They were doing this in the US before everyone said "WTF? Isn't that illegal?" It was a fine line GS was was walking (surely they expected and were counting on some hype), and it appears that it worked a little too well.

Edit: clarified.




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