EBay Chief Leaves Goldman Sachs Board After IPO Revelation

Congressional investigators disclosed in October that Goldman Sachs offered hot IPO shares to executives of at least 20 companies that did investment banking business with Goldman, and the executives often quickly sold the shares for big profits. Whitman was among the biggest beneficiaries, receiving stock in more than 100 Goldman-managed IPOs.

Although critics have said such IPO handouts by Goldman and other banks show an unfair pattern of insider favoritism that pervaded the 1990s boom on Wall Street, Goldman and Whitman have insisted that nothing illegal or inappropriate happened.

Still, Whitman quit Goldman's board to resolve any questions about her connections to the firm, Goldman spokesman Lucas Van Praag said Friday.

"Goldman Sachs has had a close relationship with eBay, and she wants to be able to turn to us for financial advice without a scintilla of a question being raised about whether it's appropriate or not," Van Praag said.

Goldman shares were up $1.20 at $71.50 in morning trading on the New York Stock Exchange. EBay shares gained 35 cents to $69.08 on the Nasdaq Stock Market.

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