Goldman Loses Facebook IPO Lead Role After ‘Strained’ 2011 Sale

Goldman Sachs Group Inc., whose equity capital markets revenue dropped to No. 4 among U.S. rivals in 2011, failed to win the lead role in Facebook Inc.’s initial public offering after scuttling a private sale of the Internet company’s stock to U.S. investors a year ago.

Facebook, the world’s largest social-networking service, said yesterday that it hired Morgan Stanley as the $5 billion IPO’s top underwriter, typically the most lucrative job for banks in a stock offering. New York-based Goldman Sachs was listed third in a regulatory filing that named the banks involved.