The parent company of a significant CU investment partner has made a large investment in a social media giant.
Investment banking giant Goldman Sachs Group Inc. has invested $450 million in Facebook in a move that could boost the social networking site muscle.
The New York Times reported Goldman Sachs, along with Digital Sky Technologies, a Russian company, have together invested $500 million in Facebook. The investment is supposed to give Facebook more money to develop new products, hire more employees and possibly pursue acquisitions. The Times also reported that the investment may allow earlier shareholders, including Facebook employees, to cash out some of their stakes in the company.
In April 2010, the SEC filed a complaint against Goldman Sachs for allegedly misleading investors through a subprime mortgage product. The company agreed to pay a $550 million fine, the largest ever paid by a Wall Street firm, without admitting to or denying the SEC's charges.
Goldman Sachs is the parent company of Goldman Sachs Asset Management LP, the adviser for institutional mutual funds offered from Trust for Credit Unions, through Callahan Financial Services, a wholly-owned subsidiary of Callahan & Associates Inc.
Last April, TCU renewed its 23-year partnership with Goldman Sachs. At the time of the renewal, 7,700 credit unions had $282 billion in investments under TCU management.