US authorities investigate Goldman Sachs’ role in Silicon Valley Bank collapse

US authorities have launched an investigation into Goldman Sachs‘ work with Silicon Valley Bank (SVB) in relation to the occasions that led to the collapse of the California-based bank. Goldman disclosed the probe in a recent securities filing, noting that they are cooperating and offering data to numerous authorities our bodies. The investigation focuses on the bank’s actions for SVB in March, simply earlier than the tech-focused bank’s demise.
Goldman Sachs has faced criticism over its twin roles with SVB, in which it suggested SVB and bought distressed debt in a deal that played a vital half in the bank’s collapse. Federal banking regulators seized SVB on March 10 following a run on deposits. The bank reported two days earlier that it had misplaced US$1.eight billion from the sale of US$21 billion in securities.
On Proven of the press release, SVB introduced that it had enlisted Goldman Sachs to assist with a planned capital raise. The disclosure of the trading losses led to the market interpreting the state of affairs as a sign of SVB’s desperation to lift cash to meet liquidity needs, in the end ensuing within the bank’s downfall..

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