He adds that Starwood's primary banking firms are Deutsche Bank and JPMorgan Chase.

Goldman Sachs also issued a statement refuting the House committee's charges. "We believe this is an egregious distortion of facts. The suggestion that Goldman Sachs was involved in spinning or other inappropriate practices around IPO allocation is simply wrong," the company stated. "Investment bankers play no role in how shares are allocated and banking clients did not receive favored treatment."

Stanley Turkel, a New York-based hotel consultant, says that he does not believe the committee's charges will have an impact on Starwood hotel business.

"Who knows how the public will view the charges?" he asked, adding that any impact on the firm's hotel business will depend on how much media attention the charges against Sternlicht receives in the future.

Capital Markets Subcommittee chairman Richard H. Baker, commented on the questionable IPO dealings by executives and Goldman Sachs by saying, "These initial public offerings seemed to be anything but public. A small circle of preferred clients were given vast access by the investment banks to IPO shares and reaped large profits on the sale of these shares. What is most disturbing is that their profits were gained at the expense of the average investor whose only option was to buy the shares at the oftentimes inflated aftermarket price. It is clear that significant changes need to be made to ensure there is equity and transparency in the IPO process."

The House Financial Services Committee examined whether shares of IPOs were offered by the investment banking firms in the late 1990s as an inducement or reward for investment banking business.

Committee chairman Michael G. Oxley stated on the report's release, "There is no equity in the equities market. I call on every Wall Street firm to show respect for America's individual investors by reforming these corrupt practices immediately."