First, Goldman’s cost of capital is close to zero as a bank holding company, it can borrow from the Federal Reserve at negligible interest rates so any capital

First, Goldman’s cost of capital is close to zero as a bank holding company, it can borrow from the Federal Reserve at negligible interest rates so any capital gain it makes on its venture in Facebook will be sheer profit. And here we have a very interesting data point reminiscent of an era preceding a previous .com valuation implosion. Does not compute. Weighted Average Cost of Capital (WACC) is one of the most important metrics for determining a value of a company. This free capital is equivalent to giving Goldman Sachs preferred stock in a pre-IPO. If Goldman-Sachs is given unrestrained liberty to not only determine the "market value" of the company AND the "insider's trading" right to determine the value of individual shares, we have most of the ingredients for another recipe for disaster.