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

Well respected have launched an investigation into Goldman Sachs‘ work with Silicon Valley Bank (SVB) in relation to the events that led to the collapse of the California-based financial institution. Goldman disclosed the probe in a current securities submitting, noting that they are cooperating and providing data to varied government our bodies. The investigation focuses on the bank’s activities for SVB in March, just before the tech-focused bank’s demise.
Goldman Sachs has faced criticism over its dual roles with SVB, in which it advised SVB and purchased distressed debt in a deal that played a vital part in the bank’s collapse. Federal banking regulators seized SVB on March 10 following a run on deposits. The financial institution reported two days earlier that it had misplaced US$1.8 billion from the sale of US$21 billion in securities.
On the same day of the press launch, SVB announced that it had enlisted Goldman Sachs to help with a deliberate capital increase. The disclosure of the buying and selling losses led to the market decoding the scenario as an indication of SVB’s desperation to lift cash to meet liquidity needs, ultimately ensuing within the bank’s downfall..

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